IndiGo Shares Rise After Codeshare Agreement With Qatar Airways
IndiGo said on Thursday it signed a one-way codeshare agreement with Qatar Airways. In a regulatory filing, InterGlobe Aviation - the parent company of budget airline operator IndiGo - said the agreement is in-line with its international expansion plans, and will enable Qatar Airways to place its code on IndiGo flights between Doha and Delhi, Mumbai and Hyderabad. IndiGo said this marks its second codeshare agreement as part of its growth strategy for international markets. Shares in InterGlobe Aviation rose nearly 2 per cent after the announcement.
Qatar Airways will place its code "QR" on IndiGo operated flights between Doha and the three Indian cities, IndiGo said.
"This strategic alliance will not only strengthen our international operations, but also boost economic growth in India, by bringing in more traffic and heralding opportunities for trade and tourism through seamless mobility," said Ronojoy Dutta, chief executive officer, IndiGo.
Qatar Airways CEO Akbar Al Baker added that he is also interested in buying a stake in IndiGo but this is not the right time as issues among promoters are yet to be resolved.
Qatar had in the past also shown interest in investing in IndiGo but the budget carrier has resisted.
Qatar Airways currently operates 102 weekly flights between Doha and 13 destinations in India, including Delhi, Mumbai, Bengaluru and Goa.
Shares in IndiGo rose as much as 1.99 per cent to Rs 1,497.90 apiece on the National Stock Exchange (NSE). On the Bombay Stock Exchange (BSE), IndiGo shares rose as much as 1.88 per cent to an intraday high of Rs 1,496.20 apiece.
At 11:14 am, IndiGo shares traded 1.13 per cent higher at Rs 1,485.05 apiece on the bourse, outperforming the benchmark Sensex index which was up 0.17 per cent.
IndiGo is the country's largest carrier with a nearly 48 per cent share of the domestic market.
Last week, it placed a historic order for 300 Airbus A320neo-family planes, including the newest jet, a long-range version of the single-aisle A320neo family called the A321XLR.
