IndiGo Airlines, Japan Airlines Announce Codeshare Partnership, Effective Dec 16

IndiGo Airlines, operated by InterGlobe Aviation Ltd., and Japan Airlines Co. Ltd., have announced the launch of their codeshare partnership, set to commence on Dec. 16, 2024. This collaboration aims to enhance connectivity and promote cultural and business exchanges between India and Japan, according to an official release.

This strategic partnership will enable JAL to expand its connectivity to India initially, while offering IndiGo customers more travel options on JAL’s extensive domestic and international network in later phases. IndiGo, which dominates the Indian aviation market with over 60% share, will offer codeshare services on its domestic routes connecting with JAL flights operating to and from Delhi and Bengaluru, as per the release.

Currently, Japan Airlines provides daily flights between Tokyo (Haneda) and Delhi, as well as five weekly services between Tokyo (Narita) and Bengaluru. Through this partnership, JAL will establish a robust network in India, linking major cities via IndiGo’s extensive domestic operations.

The arrangement will cover 18 destinations in India, offering increased travel options for tourists, business professionals, and leisure travellers.

"We are delighted to introduce new options for connectivity between India and Japan. This codeshare agreement will further strengthen business, trade and tourism related travel between India and Japan. It will also enable passengers of both airlines to explore some of the most culturally rich destinations in India and Japan, known for their history, culinary experiences, nightlife and significant landmarks," said Abhijit Das Gupta, Senior Vice President Network Planning & Revenue Management, IndiGo.

Japan Airlines will offer marketed flights for travel beginning on Dec. 16, 2024. Codeshare flights are included but remain subject to government approval. Reservations and ticket sales for these flights will open on Dec. 4, 2024.

Shares of InterGlobe Aviation Ltd., the operator of IndiGo Airlines, were trading 2.7% higher at Rs 4,228.40 apiece, compared to a 1.18% advance at the benchmark NSE Nifty 50 at 02:08 p.m.

It has risen 62.56% in the last 12 months and 42.55% on a year-to-date basis. The total traded volume so far in the day stood at 0.54 times its 30-day average. The relative strength index was at 39.24.

Sixteen out of the 22 analysts tracking the company have a 'buy' rating on the stock, three recommend a 'hold' and three suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 12.8%.