flydubai eyes stakes in India's budget airlines

Close on the heels of Qatar Airways showing an interest in the country’s largest budget carrier IndiGo, Dubai-based low-cost carrier flydubai on Monday said it was 'open' to investing in an efficient Indian airline.

“The focus from shareholders is to grow the airline in Dubai, and right now we have no mandate to go outside.

"But we have a dialogue with Indian airlines all the time. If we find a good opportunity, we will consider it.

"We will then go and seek approval from the shareholders,” said chief executive officer Ghaith Al Ghaith.

The Indian government allowed foreign airlines to buy up to 49 per cent stakes in Indian carriers in September 2012.

Since then, the Abu Dhabi-based Etihad Airways has bought a 24 per cent stake in Naresh-Goyal’s Jet Airways.

Two new ventures, AirAsia india and Tata-SIA Airlines, have been registered and will start flights soon.

Budget airlines SpiceJet and GoAir are scouting for strategic investors to infuse cash.

flydubai began operations in June 2009 and has grown rapidly to a fleet of 37 aircraft.

The airline is seeking to expand its reach.

“More than 2.4 billion people live within a five-and-a-half hour radius of Dubai.

The opportunity for us to provide connectivity is huge,”

Al Ghaith said.

In India, flydubai added four new flights to Delhi and three weekly flights each to Kochi and Thiruvananthapuram this month.

The no-frills carrier connects six airports, including Ahmedabad, Hyderabad, Kochi and Lucknow.

The airline is looking at expanding to smaller cities.

“We will take a chance with the smaller airports, even if other airlines don't think it is profitable.

"There is more value in bringing people from smaller cities to Dubai,” Al Ghaith said.

flydubai is using 3,000 seats of the 5,000 seats per week to India allotted till the summer schedule of 2015.

It operates a fleet of Boeing 737s, which will grow to to 43 by 2014 and 50 by 2015.

It has ordered 111 more Boeing 737s, which will be delivered from 2016.

BUSY SKIES

• The Indian government allowed foreign airlines to pick up to 49 per cent stake in Indian carriers from September 2012
• Abu Dhabi-based Etihad Airways has checked in with 24 per cent stake in Naresh-Goyal-promoted Jet Airways
• Two new ventures AirAsia india and Tata-SIA Airlines too have been registered and are to take to skies shortly
• SpiceJet and GoAir too are scouting for strategic investors to infuse cash in their respective airlines
• flydubai operates a fleet of Boeing 737s. With new deliveries, its fleet will go up to 43 by end-2014