India's Jet Airways and Air France-KLM have announced a partnership to route more traffic through Europe and on to North America, in a potential challenge to Gulf carrier Etihad Airways which is a shareholder in Jet.
Indian international air traffic is booming, but much of the growth has been captured by the three big Gulf carriers including Etihad, which owns 24% of Jet.
The "enhanced cooperation agreement" with Air France-KLM, signed today in India's financial capital Mumbai, is designed to route more traffic and expand the number of flights to Europe and then onwards to the US.
The agreement also includes Delta Air Lines, with which Air France-KLM has an existing partnership.
International carriers are increasingly tying up on routes in the face of rising competition.
The Gulf will continue to be an important market and Jet will not reduce its operations there, Naresh Goyal, chairman of Jet, told reporters.
He added that Jet had a "great relationship with Etihad" and that would continue.
