Qatar Airways is keen to take a stake in IndiGo, India’s largest carrier in terms of domestic market share.

“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,” said Akbar Al Baker, CEO of State-owned Qatar Airways, at a press conference here to mark the 70{+t}{+h} annual general meeting of the International Air Transport Association (IATA). Qatar Airways, with 132 aircraft, flies to 141 destinations carrying over 18 million passengers a year.

There is, however, no word from IndiGo on Qatar's willingness to pick up a stake.

Not listed The domestic low-cost carrier is promoted by Inter Globe, which is owned by Rahul Bhatia and Rakesh Gangwal. Unlike Jet Airways and SpiceJet, IndiGo is not a listed company, and hence 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.

Although IndiGo has never indicated considering selling its stake, its consistent performance has attracted many global airlines. In fact, some time ago, there were reports that IndiGo might go public, selling a part of its stake. The company’s management, however, said that considering its financial situation, it had no immediate plans to make an initial public offer.

Qatar Airways’ interest in picking up equity in the Indian carrier comes after Abu Dhabi-based Etihad took 24 per cent in Jet Airways at a cost of ₹2,060 crore. The deal gave rise to a lot of debate over the dominance of the Gulf-based carrier in the Indian market. The matter was taken to court, but the deal has cleared all legal and regulatory hurdles.

Qatar Airwys’ interest in IndiGo also comes at a time when the new Government at the Centre is expected to review foreign direct investments in all sectors, including aviation. Currently, foreign airlines are allowed to pick up to 49 per cent in domestic carriers but with the condition that key management positions remain with the Indian entity.

Every proposal must be scrutinised by the Foreign Investment Promotion Board. If the proposed investment is over ₹1,200 crore, then approval from the Cabinet Committee on Economic Affairs is also needed.

After the Manmohan Singh Government allowed foreign airlines to take equity in domestic carriers, three proposals have been approved. However, unlike Jet Airways, the two other proposals (Air Asia and Singapore Airlines) relate to new airlines.

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