Qatar Airways plans to set up Indian carrier

Having recently failed to get a foothold in the burgeoning commercial aviation market in India, Qatar Airways CEO Akbar Al Baker indicated at the ITB Berlin travel show that the Gulf carrier would “soon” be making an application to Indian authorities to set up a short-haul airline in India with a fleet of 100 narrow-body aircraft. He is currently targeting a foothold in the Indian market after Gulf rival Etihad Airways of Abu Dhabi took a 24 percent stake in Jet Airways India Ltd.
In 2015 Qatar Airways was unsuccessful in purchasing a stake in the discount airline Indigo, and also subsequently failed to acquire shares on a piecemeal basis both during and after a public offering.
Owing to a change in Indian legislation, while overseas airlines are still limited to a 49 percent stake in any of the country’s carriers, foreign sovereign wealth funds and portfolio investors have the potential to acquire 100 percent holdings. Al Baker has also indicated that the sovereign wealth fund that backs Qatar Airways would be the most appropriate vehicle for setting up an airline in India, with the fund using Qatar airways to run the venture.
While confirming that any plan would not involve a joint venture but that he was keen to see any capitalization on India’s “very progressive” moves on outside investment, Al Bakar did not explain how Qatar Airways would be able to keep its distance from a new carrier in order to meet with government requirements.
If the latest plan is unsuccessful, the new airline’s majority foreign ownership would likely limit it to domestic flights under International Civil Aviation Organisation rules.