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This is an archive article published on November 6, 2019
IndiGo, Qatar Airways to announce strategic deal tomorrow
Qatar had shown interest in picking up stake in IndiGo earlier, but IndiGo, the country’s biggest carrier, has been holding out.
The talk of a partnership comes at a time when IndiGo’s two co-founders, Rahul Bhatia and Rakesh Gangwal, have been involved in a dispute over alleged corporate governance violations.
IndiGo and Qatar Airways will make a strategic business announcement on November 7, the two companies said in a statement Tuesday. While it was not clear if the announcement is about a stake sale, codeshare pact or any other kind of partnership, sending shares of the budget carrier surged by around 2 per cent in late trade.
Qatar had shown interest in picking up stake in IndiGo earlier, but IndiGo, the country’s biggest carrier, has been holding out.
The talk of a partnership comes at a time when IndiGo’s two co-founders, Rahul Bhatia and Rakesh Gangwal, have been involved in a dispute over alleged corporate governance violations.
IndiGo, which has about 40 per cent share of the domestic Indian market, is planning an aggressive push into more international destinations. The airline’s CEO Ronojoy Dutta and Qatar Airways CEO Al Baker will “talk about the vision and future for both the airlines”, the airlines said in the statement.
IndiGo flies to over 50 international destinations, including Turkey, China, Vietnam, Myanmar and Saudi Arabia. The budget carrier had, last week, placed an order for 300 Airbus A320neo-family planes, including a long-range version of the single-aisle A320neo called the A321XLR.
Differences between the co-founders of the airline came into the open after Gangwal sought intervention of markets regulator Sebi to address alleged corporate governance lapses on July 8. While the allegations have been refuted by Bhatia’s group — InterGlobe Enterprises, Sebi and Corporate Affairs Ministry are reportedly looking into the issue.
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