Skift Take
IndiGo's codeshare agreement with Malaysia Airlines reflects Indian airlines' efforts to grow their global network. The move is essential as they face strong competition from foreign carriers.
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In its latest move to attract international travelers, budget carrier IndiGo has entered into a codeshare agreement with Malaysian Airlines. In a codeshare agreement, partner airlines are able to sell seats in flights operated by the other carrier.
IndiGo is not alone in fostering codeshare agreements: other domestic airlines including Vistara and Air India have been using this to strengthen India’s connectivity with other countries. As Indian travelers increase and look to travel more, international connections are important for Indian airlines to capture a larger share of the market.
Indian airlines held a 43% share of India’s international passenger traffic last fiscal year. In the April to June quarter, this figure was more than 45%: an increase of over 10 percentage points as compared to pre-pandemic figures. Credit rating agency CRISIL Ratings expects this to increase to 50% by the 2027-28 fiscal year.
Increasing international connectivity is important for Indian carriers as carriers in the Middle East, such as Emirates and Qatar Airways, have been seeking grants of more flying rights to operate an increased number of flights to and from India. Apart from this, Singapore, Indonesia, Malaysia, and Turkey are also seeking more