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28 March 2024

IndiGo-Qatar Airways-SpiceJet triangle: Is love really in the air?

Published
By Sneha May Francis and Bindu Rai

An unconventional love triangle is unfolding in the skies between Indian airlines SpiceJet and IndiGo, and the Gulf-based Qatar Airways.

While SpiceJet is keen on winning over Qatar Airways, the Doha-based airline is busy wooing IndiGo. Only, IndiGo crushed their interest with a rather curt rejection.

It all started with Qatar Airways openly flirting with IndiGo. Its CEO Akbar Al Baker has been telling the media about its interest in “buying as much as 49 per cent” of the Indian low-cost airline.

In fact, Akbar told Emirates 24|7 in May that “if there is any opportunity for taking an equity stake in IndiGo, we will be very interested”.

Earlier this year, Al Baker had commented on its choice of IndiGo over other Indian carriers, saying: “We like to partner with success stories, not failures.”

He added: “If there’s equity available we would be very to take that equity in IndiGo.”

However, IndiGo put an end to the flirtations and denied any interest in Qatar Airways, adding a fresh twist to the drama.

“News reports about any possibility of Qatar Airways acquiring a stake in IndiGo are completely baseless,” read their official statement.

“We wish to confirm that there is no discussion, leave alone negotiation about any potential equity or other financial investment by Qatar Airways in IndiGo.”

They, however, confirmed that they are in “preliminary discussions with Qatar Airways to explore potential marketing arrangements based on mutual interests”.

This comes just days after Qatar Airways refuted claims in the Indian media that it was pursuing a commercial stake in budget carrier SpiceJet, announcing instead “the only airline it is talking to is the Indian carrier IndiGo”.

Qatar Airways also referred to these news reports “a tactic to increase market and share value”; on Monday, shares in SpiceJet soared to a two year high as investors reacted to the news that the Indian airline has been approached by outside investors.

It had then added that “the only airline it is talking to is the Indian carrier IndiGo”.

India is an especially lucrative market for Gulf-based carriers because more than six million Indians live in the GCC region and air travel between the two markets is growing rapidly.

Qatar is catching up with peers Emirates and Etihad, in terms of frequency of services to the country.

The Abu Dhabi-based Etihad has managed to grow its India market share rapidly thanks to a stake in India's Jet Airways, and Qatar Airways will be hoping to replicate that model.