Interested in Air India if it comes without ‘baggage’: Qatar Air CEO
Qatar Airways has said that it would be interested in Air India only if it comes without the ‘baggage’, after the government decided to hold the national carrier’s divestment plans following a failed attempt to attract bidders.
“We would be interested in Air India if we had a strong partner. We need to have a very strong partner and we take the airline without the baggage,” said Qatar Airways group CEO Akbar Al Baker. “Look, it is not the debt that’s the baggage — it is the other functions that Air India carries out such as ground handling, engineering and things like that are. We would be interested only in the airline,” Baker said, explaining his reference to the ‘baggage’.
The government tried to sell 76% in Air India along with low-cost carrier international subsidiary Air India Express and ground handling company Air India Singapore Airport Terminal Services (AISATS), which is a ground handling subsidiary of Air India with 50% partnership from Singapore-based SATS.
The government, which had a target to complete the sale process by December this year, failed to attract any bids for the national carrier despite extending the deadline to May 31 from May 14, 2018.
With nobody showing much interest in the airline, the government has put the process on hold and is working on a proposal to fund the working capital debt and losses of the airline. The proposal is to fund the working capital loans of about Rs 30,000 crore.
On the issue of increase in bilateral flying entitlements between India and Qatar, Baker said that they have made fresh requests to the government for an increase in flying rights.
“Unfortunately, the civil aviation ministry has been unfair with Qatar Airways (in case of granting increase in bilateral rights). While we were been restricted, everyone was getting bilaterals.
First, there was a condition that Indian carriers need to utilise 80% of existing bilaterals. They have now reached 84%, still there is no light at the end of the tunnel,” said Baker. While bilateral flying rights between India and Qatar has not increased, Dubai and Abu Dhabi have seen huge increase in their flying rights quota with India.
“We would be interested in Air India if we had a strong partner. We need to have a very strong partner and we take the airline without the baggage,” said Qatar Airways group CEO Akbar Al Baker. “Look, it is not the debt that’s the baggage — it is the other functions that Air India carries out such as ground handling, engineering and things like that are. We would be interested only in the airline,” Baker said, explaining his reference to the ‘baggage’.
The government tried to sell 76% in Air India along with low-cost carrier international subsidiary Air India Express and ground handling company Air India Singapore Airport Terminal Services (AISATS), which is a ground handling subsidiary of Air India with 50% partnership from Singapore-based SATS.
The government, which had a target to complete the sale process by December this year, failed to attract any bids for the national carrier despite extending the deadline to May 31 from May 14, 2018.
With nobody showing much interest in the airline, the government has put the process on hold and is working on a proposal to fund the working capital debt and losses of the airline. The proposal is to fund the working capital loans of about Rs 30,000 crore.
On the issue of increase in bilateral flying entitlements between India and Qatar, Baker said that they have made fresh requests to the government for an increase in flying rights.
“Unfortunately, the civil aviation ministry has been unfair with Qatar Airways (in case of granting increase in bilateral rights). While we were been restricted, everyone was getting bilaterals.
First, there was a condition that Indian carriers need to utilise 80% of existing bilaterals. They have now reached 84%, still there is no light at the end of the tunnel,” said Baker. While bilateral flying rights between India and Qatar has not increased, Dubai and Abu Dhabi have seen huge increase in their flying rights quota with India.
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