At the opening of Dubai Air Show, Akbar Al Baker, CEO of Qatar Airways, expressed his hope to buy a 49% stake in Indigo Airlines of India (offering price of US$ 2 billion) to promote its market share in India, one of the fastest growing markets in the world.
"At the opening of Dubai Air Show, Akbar Al Baker, CEO of Qatar Airways, expressed his hope to buy a 49% stake in Indigo Airlines of India (offering price of US$ 2 billion) to promote its market share in India, one of the fastest growing markets in the world.
Indigo Airlines sold 10% of its shares in the initial public offering in October, and finally raised about 30 billion rupees (US$ 456 million), making its total value reach US$ 4.2 billion, making it the third lowest-cost airline in Asia, and its value is 5 times and 9 times that of Jet Airways and Spice Aviation, two other Indian listed airlines respectively.
Becker said: ""Because of the Indian official restrictions on airlines participating in another airline's initial public offering, we can't buy Indigo Airlines shares. This process will take a long time, and their listing is in a hurry. Assuming that we can buy up to 49% of the maximum stock limit, we will be happy to buy it. ""
Indigo Airlines is the only Indian airline that has made profits every year in the past seven years, and its shares will start trading on November 10th. according to the National Securities Exchange of India, the offering price of Indigo Airlines is set at the highest price in the market range, because the bidding amount of institutional investors is 17.8 times of the reserved stock amount.
Becker said he is also eager to increase his 10% stake in British Airways parent company International Aviation Group (IAG). He said that Qatar Airways is likely to increase its investment in IAG, but it will come slowly. According to EU rules, investors outside the EU can hold up to 49% of the shares of airlines in the EU.
Qatar Airways is currently evaluating the acquisition of Royal Air Maroc stock to expand its undeveloped tourism market in West Africa and Sahara. Qatar Airways has cooperated with Royal Air Maroc in code sharing and hopes to take it to participate in a worldwide alliance."