NEW DELHI:
Qatar Airways (QA) is reviewing its plans for launching a domestic airline in India after realising that a 100 per cent foreign-owned carrier here — though allowed by FDI norms — is not possible in reality. The reason: substantial ownership and effective control of such airlines has to be with an Indian entity in any JV airline like it is with the Tatas in Vistara.
To enter the Indian market, QA, for “the time being”, is interested in picking up stake in
IndiGo. It is also open to buying Air India with the “right partner”. Any of these options must work out in the 12 months or so, else the Group will look at other places for investment. While stating this here on Tuesday, QA Group chief executive Akbar Al Baker also expressed his unhappiness at India not enhancing bilaterals or flying rights of
Qatar “even as everyone else was getting them”.
“We are really very interested in launching an airline but the regulation is little bit confusing to us. We gathered foreigners could fully own an airline here,” Al Baker said. In June 2016, the government had allowed 100 per cent FDI in airlines with a condition that foreign airlines’ stake should not be beyond 49 per cent and rest be owned by a non-airline foreign entity.
“QA’s legal team was preparing the paperwork for airline in India. However, we were told an investment by
Qatar Investment Authority (QIA), which owns QA, and the application for this proposed airline will not be in compliance with norms,” Al Baker said. Also, the rule that substantial ownership and effective control (SOEC) of JV airlines must be with Indian partners was not amended while allowing 100 per cent FDI in airlines due to which an Indian entity has to have controlling stake in any such airline. Aviation secretary R N Choubey said, “QA needs to find an Indian partner for its domestic airline. An airline with 49 per cent held by QA and 51 per cent by QIA is foreign investment and foreign control. SOEC has to be with Indian entity.”
Qatar Airways to review airline-launch plan in India
To enter the Indian market, QA, for “the time being”, is interested in picking up stake in IndiGo. 
