Not interested in Jet Airways investment, which is backed by ‘enemy’ state: Al Baker

Qatar Airways has recently been on an expansion spree, buying stakes in new airlines and initiating flights in hitherto untried routes.

After recently acquiring a 5% stake in the China Southern Airlines, many had expected them to do something similar in the Indian market by buying shares in debt-ridden Jet Airways.

However, Qatar Airways CEO Akbar Al Baker has shot down the idea, saying they were not interested in buying stakes in an airline that had substantial investment by Etihad Airways, whose owner Abu Dhabi is an ‘enemy’ of Qatar, reported Reuters news agency.

Abu Dhabi is an emirate of the United Arab Emirates, which along with Saudi Arabia, Bahrain and Egypt cut all ties with Qatar in June 2017.

“We would look at it (Jet Airways) if a 24% stake wasn’t held by Etihad. How can I take a stake in an airline which is owned by our adversary?” Al Baker told Reuters on the sidelines of an aviation conference in Mumbai.

Etihad plans to hike its stake in Jet to help the Indian carrier with its financial woes, a person close to the Abu Dhabi carrier told Reuters late on Monday.

Meanwhile, Al Baker said Qatar Airways would be ‘delighted’ to take a stake in IndiGo, the largest airline in India, home to the world’s fastest-growing aviation market.

The Qatari airline has previously expressed an interest in investing in IndiGo, owned by InterGlobe Aviation, reported Qatar Tribune.

“But not in an airline where substantial ownership is by the enemy of my country,” he said, referring to Jet.

Qatar Airways is also keen to start a wholly owned airline in India, but that is not allowed under India’s current foreign investment rules. 

“Given China and India are the biggest growing markets, it’s obvious as an airline we want to invest strategically in those regions because we are a very rapidly growing airline,” he was quoted as saying by the Economic Times.

The statements come on the eve of a lenders’ meeting that will discuss the resolution plan for Jet Airways. The airline owes a little over Rs 8,000 crore to a consortium of lenders led by the State Bank of India.

It is understood Etihad will bring in fresh equity that will see its stake rising to almost 49% in Jet Airways. The development could see promoter Naresh Goyal’s stake coming down to a little over 20% from 51% and Goyal stepping down from the board, reported The Telegraph.