Tata group-owned Air India has signed an interline arrangement with Bhutanese carrier Drukair-Royal Bhutan Airlines. The partnership allows passengers to book single-ticket itineraries, coordinate baggage transfers, and access expanded domestic and international networks across both airlines.

Tata group-owned Air India announced on Wednesday that it has entered into an interline partnership with Bhutanese flag carrier Drukair-Royal Bhutan Airlines. The collaboration aims to offer passengers seamless travel options across each other's networks and strengthen connectivity between India and Bhutan.

An interline arrangement is a commercial pact that allows airlines to issue and accept tickets for flights operated by a partner carrier. Under this agreement, selling an interline ticket uses the operating airline's flight numbers, enabling passengers to benefit from a single-ticket itinerary combining Air India and Drukair flights for end-to-end travel.

With this addition, Air India stated that it now provides connectivity to nearly all countries in the South Asian Association for Regional Cooperation (SAARC) region through its own or partner networks. Aside from India and Bhutan, the SAARC region includes Pakistan, Bangladesh, Nepal, Afghanistan, Maldives, and Sri Lanka.

The partnership also introduces coordinated baggage transfer to final destinations via Air India's hub at Delhi's Indira Gandhi International Airport. Additionally, passengers will have access to competitive interline fares, offering enhanced flexibility and overall value.

For Air India customers, the arrangement allows seamless travel to Paro in Bhutan via Delhi from across the airline's international network, alongside onward connections within Bhutan from Paro to Bumthang, Gelephu, and Yonphula.

Reciprocally, Drukair passengers gain direct access via Delhi, Guwahati, and Kolkata to Air India's domestic network—including Bengaluru, Mumbai, and Kochi—as well as major international destinations such as London, Paris, Frankfurt, New York, San Francisco, Toronto, Melbourne, Sydney, and others.

Commenting on the development, Nipun Aggarwal, Chief Commercial Officer of Air India, said, "Our partnership with Drukair reinforces our commitment to strengthening connectivity across the SAARC region, which we consider our extended home market. Bhutan is a valued part of this region, and we are happy to enable easy access to Bhutan for our guests and look forward to welcoming Drukair's passengers onto Air India's extensive domestic and global network."

Tandi Wangchuk, Chief Executive Officer of Drukair, added, "This partnership marks a significant milestone for Drukair as we continue to strengthen our global connectivity and enhance the travel experience for our passengers. Through this interline partnership with Air India, Drukair-Royal Bhutan Airlines customers will benefit from seamless journeys, expanded access to key international markets, and improved connectivity across India and beyond."

"Strategic interline partnerships like the one between Air India and Drukair are practical business mechanisms for expanding market reach without the high capital expenditure of launching new routes. By connecting regional hubs such as Delhi, Guwahati, and Kolkata to international gateways, both carriers improve asset utilization and deliver a streamlined customer experience. For the broader travel and business ecosystem, such cross-border collaborations reduce friction and strengthen economic ties within South Asia." — Dr. Shishir Gupta, Founder & CEO, StartupLanes

Recent StartupLanes Articles

Browse through our 30 latest publications on venture capital, startups, and angel investing.