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Qatar Airways puts on hold plans for setting up airline in India; awaits clarity on FDI norms

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Press Trust of India New Delhi
Last Updated : Sep 04 2018 | 7:45 PM IST

Qatar Airways will wait for "another 12 months" to decide on setting up an airline in India as it seeks clarity on "ambiguous" foreign ownership norms, its chief Akbar Al Baker said Tuesday.

The comments come less than three months after Al Baker said that the Gulf carrier would soon be moving an application to launch a full-service airline in India for domestic operations.

Al Baker, who has been Qatar Airways' Group Chief Executive Officer for over two decades, said that the rule of allowing foreign entity to own up to 100 per cent stake in Indian carriers is not very clear.

"What we are given to understand is that a foreign airline cannot own 100 per cent but a foreigner can. I don't know what is the difference between a foreigner and an airline," he said.

Speaking at a select media round table here, he said that if Qatar Investment Authority (QIA) owns 51 per cent and Qatar Airways has 49 per cent in an airline that is not allowed. "It is very ambiguous. Really the rule is not clear," he noted.

The QIA owns Qatar Airways.

India has permitted foreign investors, barring foreign airlines, from owning up to 100 per cent stake in local carriers. While a foreign airline can hold up to 49 per cent stake, foreign investment arms can own the remaining.

On how long Qatar Airways can wait on India venture, Al Baker said, "We will wait for another 12 months but beyond that we will not be able to..."

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First Published: Sep 04 2018 | 7:45 PM IST

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