News
Qatar Airways – IndiGo deal imminent?
February 16th 2015
Last week, a Delhi meeting between Qatar Airways chief, Akbar Al-Baker, and IndiGo’s majority-owner, Rahul Bhatia, sparked speculation that a deal for a Qatar Airways stake in LCC, IndiGo, was imminent. Read More » Last month, Al Baker said he was “extremely interested” if IndiGo offered. Both leaders said not much should be read into the “social only” meeting.
India, recently dubbed “a sleeping superpower” by Al Baker, has been on the Gulf carriers’ wish lists for years, mainly to allow Indian flyers greater access to U.S. and Europe. Etihad Airways last year took a 24% stake in Jet Airways, which it uses to channel more passengers through its hub at Abu Dhabi International Airport.
In January, Qatar Airways acquired a surprise 9.99% stake in British Airways/Iberia parent company, International Airlines Group (IAG), for$1.73 billion. Al Baker called this “an excellent opportunity to further develop [Qatar Airways’] Westward strategy”, which has often been described as a westward invasion by the carrier’s European and North American competitors. The investment is expected to provide the Gulf carrier with greater access to the lucrative transatlantic market, while British Airways would gain a bigger foothold in India and across the Asia-Pacific.
As such, a potential investment in IndiGo would stay true to that strategy. IndiGo is India's biggest domestic airline with a 33% market share and was India’s only profitable airline in 2014. It has a fleet of 66 A320s, with an additional 250 A320neo, worth US$25.7 billion at list prices, on order.
