Emirates still not interested in India stake - Clark

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Emirates Airline President Tim Clark.

Emirates Airline President Tim Clark.

Emirates Airlines, the world’s largest international carrier, has reaffirmed it has no plans to follow Abu Dhabi rival Etihad Airways and bid for a stake in an Indian carrier, the Dubai-based operator’s president said.

President Tim Clark said there were no plans to acquire equity stakes in indebted Jet Airways or Kingfisher Airlines because they lack the control of operations, finances and their workforces that Emirates sees as necessary, Bloomberg reported.

“If the Indians themselves can’t make a go of it - if Vijay Mallya can’t, and Naresh is struggling, and Air India?” Clark was quoted as saying, referring to the bosses of the two Indian carriers believed to be seeking a link up with an international partner to help service their mounting debts.

“If they can’t make it work, then who can?” he added.

Indian regulators in September 2012 passed a law allowing foreign carriers to invest in the country's domestic aviation sector for the first time, although Emirates was quick to distance itself from any possible tie-up, saying it had "no plans" to acquire any stake.

Etihad Airways is believed to be close to making a decision within the next few day on investing in an Indian carrier, with Jet Airways believed to be the favourite.

Etihad, seeking to widen operations in India and other Asian markets, is in the final stages of talks to buy part of either Jet Airways or grounded rival Kingfisher Airlines, an Indian government official had said on December 17. Both Indian airlines have confirmed that they have held talks with Etihad.

A deal would be the first since the government relaxed ownership rules in September to allow foreign airlines to invest up to 49 percent in a domestic carrier.

Buying into Jet is seen as more lucrative for Etihad as the two carriers already have a code-sharing agreement and could target the market share of state-owned Air India and Emirates Airline, the latter of which dominates routes between India and the Middle East.

But a stake in Kingfisher, which has been grounded after its licences were suspended and whose owner, liquor baron Vijay Mallya, has been looking for an investor for more than a year, would be cheaper.

Jet Airways was set to sign a deal with Etihad valued at around US$440m within six months, a source had confirmed in November.

Kingfisher will need about INR4.25bn (US$77.91m) to restart according to its plan, said Shyamal Acharya, a deputy managing director at State Bank of India, the country's top lender and the lead bank to Kingfisher.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: Hisham

Etihad should also pull out, they're being set up to lose money there. There are more interesting regions which are more reliable investments.

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
From bigger, faster and windowless planes to escape pods, pilotless cockpits & virtual reality entertainment: The future of aviation

From bigger, faster and windowless planes to escape pods, pilotless cockpits & virtual reality entertainment: The future of aviation

How will passengers’ flight experience be in the future? Advances...

How Gulf banks are helping to underwrite region's aviation boom

How Gulf banks are helping to underwrite region's aviation boom

Figures from Airbus show that 47% of MidEast aircraft deals in...

2
The inside story of the new Airbus A350 jet

The inside story of the new Airbus A350 jet

Customers, suppliers and industry sources share their insights...

Most Discussed
  • 17
    Nakheel PR: The toughest job in Dubai?

    You forgot to mention the sewage pit between JLT and Jumeirah Park and the terrible landscaping in Jumeirah Park The chain link fencing they want to install... more

    Monday, 30 March 2015 9:05 AM - An Emaar Fan
  • 14
    Has Narendra Modi already lost the plot?

    Gaja - Anil is RIGHT this once! Modi stands for anarchy. Look at the way he is treating the minorities. Do you even for a second believe that he is innocent... more

    Sunday, 29 March 2015 1:42 PM - Ann
  • 14
    Dubai Int'l T1 is too congested, says Indian airline boss

    Question: All you people, criticizing my comment, do you work for Air India by any chance?

    Additionally, for all the whiners, I will provide you... more

    Tuesday, 31 March 2015 12:50 PM - Mosa