Qatar Airways to set up airline in India
berlin/dubai — Qatar Airways plans to set up a short-haul airline in India with a fleet of 100 narrow-body planes, renewing a push to gain a bigger share of one of the world’s fastest-growing travel markets.
The Gulf carrier will make an application to the Indian authorities “soon”, chief executive officer Akbar Al Baker said at the ITB Berlin travel fair, adding that he intends to proceed “step by step”.
The Qatar Investment Authority, the sovereign wealth fund that backs Qatar Airways, would be the most suitable vehicle for establishing an airline in India, the CEO said in a media briefing. The fund could use his carrier to run the venture, he said.
Qatar Airways was thwarted in a 2015 bid to boost its Indian footprint by purchasing a stake in discount specialist Indigo and failed to buy up shares piecemeal during and after a subsequent initial public offering. While the Indian government limits overseas airlines to 49 per cent stakes in its carriers, a relaxation of restrictions last year means foreign sovereign wealth funds and portfolio investors can potentially acquire 100 per cent holdings.
The India plan won’t involve a joint venture, Al Baker said, adding that he intends to capitalise on the country’s “very progressive” moves
100 aircraft fleet being eyed by Qatar Airways for Indian carrier
on outside investment. While the QIA might comply with the revised rules on foreign ownership, the CEO didn’t explain how Qatar Airways would keep a sufficient distance from the new carrier to satisfy government requirements. Al Baker has sought to use the QIA as a vehicle for Indian expansion before, with the fund unable to secure a position in Indigo during the IPO after failing to gain the approvals in time. If the latest plan does succeed the new airline’s majority foreign ownership would likely limit it to domestic flights under International Civil Aviation Organisation rules.
Al Baker is targeting an Indian foothold after Gulf peer Etihad Airways of Abu Dhabi took a 24 per cent stake in Jet Airways.
He said Qatar Airways is short of 10 Airbus Group A350 and A320 jets following programme delays, including five A320neos he cancelled in response to cooling issues with their Pratt & Whitney engines that would have limited operations. — Bloomberg