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Qatar makes friends with IndiGo but no equity for now
November 8th 2019
Gulf superconnector is second code-share. Read More »
Following the code-share it announced with LCC, IndiGo, Qatar Airways can virtually expand in India, a critical source market and a country where it has been unable to secure additional traffic rights since 2009. By comparison, the UAE and other Gulf nations have received extra traffic right entitlements this decade.
Qatar will place its code on IndiGo flights from Delhi, Mumbai and Hyderabad to Qatar’s Doha hub. IndiGo will not code-share on Qatar operated flights, but Qatar Airways group CEO, Akbar Al Baker, said that could happen at a later date pending IT changes.
IndiGo previously had only one code-share partner, Turkish Airlines. Despite oneworld’s long sought attempt to secure a partner in India, no oneworld member had previously partnered with IndiGo, India’s largest airline with a nearly 50% market share.
“We believe this agreement will be just the first step in strengthening our relationship," Al Baker said.
When asked if Qatar would invest in the Indian carrier, Reuters reported Al Baker said “we will wait. We are very keen on IndiGo. We are very keen to take a stake in IndiGo, but I don't think this is the right time to talk about it".
Al Baker was likely referring to a disagreement between IndiGo’s co-owners about corporate governance of the carrier, a dispute that is headed to the UK courts. The legal battle has not precluded significant investment and growth in the carrier. Last week, IndiGo ordered 300 A320 family aircraft.
