Thursday, November 07, 2019

IndiGo signs one-way codeshare agreement with Qatar Airways

New Delhi: Top Indian airline IndiGo said on Thursday it signed a one-way codeshare agreement with Qatar Airways, letting the Middle Eastern airline get more access to the fast-growing Indian market.
India has not increased the capacity rights available to Qatari carriers since 2009, so the deal will help Qatar Airways bypass restrictions on adding more flights by funnelling passengers onto the low-cost carrier. A codeshare allows an airline to sell tickets on the allied carrier’s flights.

India is traditionally a strong market for Gulf airlines like Qatar Airways and Emirates, with millions of Indians working in Gulf Arab states, while travellers from India also use the Gulf to connect to Europe and North America.

Qatar Airways will place its code on IndiGo flights between Doha and Delhi, Mumbai and Hyderabad, the companies said.

IndiGo, owned by InterGlobe Aviation (INGL.NS), dominates the domestic market, operating a large fleet of narrowbody, all economy-class aircraft.

Qatar Airways Chief Executive Akbar al-Baker, who has long talked of making an equity investment in IndiGo, said his airline remained interested.

“We will wait,” he told reporters. “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.”

The deal comes at a time when IndiGo’s two co-founders, Rakesh Gangwal and Rahul Bhatia, have been embroiled in a dispute about corporate governance of the airline, sparking concern among investors it could have an impact on the airline’s valuation and strategy.
07/11/19 Sankalp Phartiyal/Reuters
To Read the News in full at Source, Click the Headline


Post a Comment