Qatar Airways chief executive officer, Akbar al-Baker has stated that his company will not buy a stake in the financially-stressed Jet Airways since Etihad Airways already backs it, reports Times Of India.
“We would definitely look at it (Jet Airways) if a 24 percent stake was not held by Etihad. How can I take a stake in an airline which is owned by our adversary?" said Mr al-Baker, referring to Etihad as Qatar’ adversary. Etihad Airways is the flag carrier of United Arab Emirates (UAE).
Due to a 2017-19 diplomatic tussle, a group of countries including Saudi Arabia, UAE and Bahrain severed diplomatic relations with Qatar and banned Qatar aeroplanes and ships from entering their airspace and sea routes. The group alleged that Qatar supported terrorist activities and violated a 2014 Gulf Cooperation Council (GCC) agreement.
However, the CEO added that though he would be "delighted" to purchase a stake in IndiGo, India’s largest airline company, he would not do the same in an “airline where substantial ownership is by the enemy of my country."
Etihad To Raise Its Stake In Jet
It was recently reported that Etihad Airways PJSC is set to increase its stake in Jet Airways to 49 per cent after the latter’s founder-chairman, Naresh Goyal agreed to give up majority control. Presently, Etihad has a minority stake of 26 per cent in the financially-stressed airline.
Jet Airways has been saddled with over Rs Rs 8,620 crore of debt as on 30 June 2018. It also reported its second consecutive quarterly loss of over Rs 1,300 crore last year.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.