Qatar Airways says it is in talks with Indigo to buy stakes

Gulf carrier denied news reports it is holding discussions for a 'commercial stake' in low-cost carrier SpiceJet

Gulf carrier Qatar Airways on Tuesday said it is in talks with IndiGo, the market leader in India's aviation sector, to buy stakes in the airlines.

It denied news reports that it is holding discussions for a "commercial stake" or engage in a "partnership" with low-cost carrier SpiceJet.

"Qatar Airways confirms that the only airline it is talking to is the Indian carrier, Indigo," the Doha-based carrier said in a statement refuting media reports that it is entering into a commercial agreement with SpiceJet.

IndiGo, however, didn't immediately respond to an e-mail questionnaire. This comes at a time when IndiGo is gearing up for an initial share sale of around Rs 2,500 crore. InterGlobe Enterprises holds around 51% stake in IndiGo and the rest is owned by Virginia-based Caleum Investments.

"This release is to confirm that Qatar Airways is not in talks to pursue a commercial stake in SpiceJet. There is no interest from the airline to engage in a partnership with the Gurgaon-based airline," the company said.

According to a Reuters report, Qatar Airways chief executive Akbar Al Baker told a press conference in May this year that IndiGo was not considering selling a stake and the two airlines shared a "personal relationship." However, Qatar Airways is keen to buy up to 49 per cent of Indigo's stakes.

According to a few media reports, the Doha-based carrier is in talks to pick up stake in SpiceJet.

"Claims are also being made in news reports that a consensus has been reached regarding an interline agreement, and that negotiations are set to continue in the near future. Qatar Airways presently does not have any form of interline agreement with SpiceJet, which is the simplest form of relations between any two airlines, and Qatar Airways is not planning to pursue any form of arrangement in the future," the statement said.

SpiceJet chairman Ajay Singh said in a press conference on Tuesday the airline "has been approached by several investors including airlines" but refused to name any. "I would not comment on any specific airline at all. There are continuing talks with foreign airlines on possible areas of operation," Singh said.

Dismissing the news reports, Qatar Airways said, "Similar news was disseminated in January 2013, and this appears to be a tactic to increase market and share value."