IAG in talks with Chinese airlines to tap into 'spectacular' passenger growth

Willie Walsh, the head of International Airlines Group (IAG), revealed the discussions as he warned that Britain is still losing out on critical trade and tourism with the world’s second biggest economy due to its visa regime for Chinese visitors, despite efforts by the Home Office to improve the system.

Mr Walsh said a codeshare agreement with a Chinese domestic carrier would allow IAG to grow capacity out of Beijing, Shanghai and Chengdu.

But the airlines chief also warned that the UK’s visa regime for Chinese visitors to Britain remains a significant impediment to BA’s ability to expand in Asia.

The Home Office has announced a number of improvements to the UK’s visa regime, including, most recently, scrapping transit visas for Chinese passengers who want to change flights in the UK and are in possession of a European Schengen visa.

However, Mr Walsh dismissed the changes as “tinkering” and warned Britain would not see a meaningful uplift in Chinese business visitors and tourists – who are now the biggest spending travellers in the world – until there is a fundamental view of the UK visa system.

He said: “We are just struggling to rationalise the Government’s comments in terms of their desire to develop trade with China and their actions in terms of visa policy.

“The system they have in place doesn’t work and tinkering with it is not going to make a difference. If they are serious they are going to have to have a fundamental review and make it a fit for purpose system.

“I’m not saying just open the doors. People often try to defend what it is they are doing by saying we have to have effective border control. It’s not about effective border control, by all means have effective border control but if you want people to come and do business and visit [the UK] don’t make it almost impossible for them to do that.”

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