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After private carrier Jet Airways' [Get Quote] decision to set up a hub in Belgium, state-run Air India now mulls a tie-up with Serbia's national airline Jugoslavenski Aerotransport to operate within Europe.
"JAT approached us and we are looking at their proposal," Air India chairman, V Thulasidas, told PTI . However, he added that Air India was not looking at acquisition.
No decision has been taken on the form of the tie-up, he said. "We have asked our consultants, Accenture, to study the proposal," he added.
"A tie-up will give us an opportunity to operate in Europe as a European airline that will normally not be available to an Indian airline," he said.
Air India's plans follows its domestic rival Jet Airways decision last week to create a hub at Brussels to gain access to the entire Europe as well as North America.
Thulasidas said Air India was not looking at an acquisition but only considering a strategic co-operation.
"The nature of the relationship will depend upon negotiations with them," he added.
Russian national carrier Aeroflot has already evinced interest in the 80-year-old Serbian airline, which could be sold by the end of this year.
Accenture, which was the consultant for preparing the roadmap for the Air India-Indian merger, is expected to submit its report shortly.
Air India already uses Frankfurt and London as its hubs for Europe, Africa and the US.
Currently, JAT operates 10 Boeing 737-200s and four ATRs and these aircraft are 15-25 years old.
Thulasidas said that once Accenture submits its report, the proposal will be discussed by Air India's Board and the civil aviation ministry.
Air India is presently in the process of a major overhaul such as rationalising routes, though initially all the routes presently operated by Air India and Indian will continue. Both the carriers are acquiring aircraft from Boeing and Airbus.
While Air India is acquiring 68 Boeing aircraft for its short, medium and long-range operations, Indian is buying 43 aircraft from Airbus for short and medium range operations.
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