Mumbai: Qatar Airways interest in IndiGo, India's largest domestic airline, reflects the Gulf's carrier's strategic focus and its desire to increase traffic rights in India but an alliance between the two seems unlikely because of varying business models and IndiGo's sound financial position.
Last year Abu Dhabi secured 37,000 additional seats per week taking total to over 50,000 seats between the two countries. Two months ago India enhanced Dubai's seat entitlement by over 11,000 seats per week over the existing 54,000 seats. Qatar has virtually exhausted its entitlement of 24,000 seats per week and as a result Qatar Airways is unable to expand services to India. That is one reason for tapping for partners in India. Last year the airline held preliminary discussions with SpiceJet for a potential stake sale but talks fizzled out, said sources in the know.
IndiGo is India's most profitable airline (Rs 787 crore net profit in FY 2013) and has a market share of about 30 percent. It is also the fastest growing airline in India and is adding 9 Airbus A320 planes to its 78 aircraft fleet in 2014.
15/05/14 Aneesh Phadnis/Business Standard
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Last year Abu Dhabi secured 37,000 additional seats per week taking total to over 50,000 seats between the two countries. Two months ago India enhanced Dubai's seat entitlement by over 11,000 seats per week over the existing 54,000 seats. Qatar has virtually exhausted its entitlement of 24,000 seats per week and as a result Qatar Airways is unable to expand services to India. That is one reason for tapping for partners in India. Last year the airline held preliminary discussions with SpiceJet for a potential stake sale but talks fizzled out, said sources in the know.
IndiGo is India's most profitable airline (Rs 787 crore net profit in FY 2013) and has a market share of about 30 percent. It is also the fastest growing airline in India and is adding 9 Airbus A320 planes to its 78 aircraft fleet in 2014.
15/05/14 Aneesh Phadnis/Business Standard
