BA's bid for Go Air is grounded: media

British Airways' takeover plan of Indian LCC Go Air has got derailed.

According to business.timesonline.co.uk, the plan was derailed by problems with industry-ownership laws.

The report shared that BA wanted to take a controlling or significant minority share, with senior industry sources saying it was ready to pay up to $600m (£371.2m) for the stake. But such cross-border deals are normally out of the question in commercial aviation, which has tough rules preventing foreign nationals owning or taking control of airlines, it added. 

"BA aimed to get round the restrictions by setting up an Indian intermediary company to hold its investment in Go Air. Legal difficulties overwhelmed the deal within the past few weeks, however," it added.

It is understood BA may negotiate a marketing alliance with Go Air instead, with the Indian airline using BA flight codes on its domestic network.