Air India appoints Accenture to study tie-up

Air India has appointed Accenture as the consultants to study its proposed tie-up with Serbia's national airline Jugoslavenski Aerotransport (JAT) to operate within Europe.

"No decision has been taken on the form of the tie-up. We have asked our consultants, Accenture, to study the proposal," Air India chairman, V Thulasidas, said. The report is expected to be submitted shortly.

Accenture was also the consultant for preparing the roadmap for the Air India-Indian merger. Air India was not looking at an acquisition, but only considering strategic co-operation and the nature of the relationship will depend upon negotiations between the two airlines.

"JAT approached us and we are looking at their proposal," Thulasidas said. "A tie-up will give us an opportunity, normally unavailable to an Indian airline, to operate in Europe as a European airline," he added.

Air India's plans follows its domestic rival, Jet Airways' decision last week to create a hub at Brussels to gain access to Europe and North America.

The Russian national carrier, Aeroflot, has already evinced an interest in the 80-year-old Serbian airline, which could be sold by the end of this year.

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.