Qatar Airways Keen To Buy Stake In IndiGo

Qatar Airways is keen to pick up stake in IndiGo, India’s largest carrier in terms of domestic market share. Qatar Airways, with 132 aircraft, flies to 141 destinations carrying over 18 million passengers a year.

The fastest growing Gulf carrier’s CEO Akbar Al Baker said that the airline was interested in buying stake in India's IndiGo airline and Qatar Airways could be buying additional Airbus A380 planes in the future.

“We are keen on investing in IndiGo, if it is available. It is the most successful and cost-efficient Indian carrier and the most progressive one. We always like to associate ourselves with success,” Baker said at a Press conference in Doha.

IndiGo, however, declined to comment on Baker's remarks.

Unlike Jet Airways and SpiceJet, IndiGo, promoted by travel technology and trade firm InterGlobe, is not a listed company. So its financial results are not in the public domain.

However, the company’s filing with the aviation regulator shows that IndiGo is the only profit-making scheduled airline in the country. It has over 75 aircraft and operates around 500 flights daily in India and to destinations abroad.

The low-cost carrier’s consistent performance has attracted many global airlines. In fact, there were reports that IndiGo could go public, selling a part of its stake. But the company’s management rejected immediate plans to make an initial public offering (IPO).

Qatar Airways’ interest in picking up equity in the Indian carrier comes after Abu Dhabi-based Etihad took 24% in Jet Airways at a cost of Rs 2,060 crore.

Qatar Airways’ interest in IndiGo also comes at a time when Narendra Modi-led BJP government is expected to review foreign direct investments (FDI) in all sectors, including aviation.

Currently, foreign airlines are permitted to pick up to 49% in domestic carriers but with the condition that key management positions remain with the Indian nationals only.