Qatar Airways in talks to buy stake India's SpiceJet, say reports

Qatar Airways is reportedly planning to acquire a minority stake in SpiceJet, an Indian low cost airline.

Both airlines have signed a non-disclosure agreement, Indian newspapers said, with preliminary talks being held on Qatar Airways acquiring a 24 percent stake in SpiceJet, according to Dubai-based weekly Arabian Business.

Qatar Airways might invest a total of $200m in SpiceJet, the source also claimed.

Shares in SpiceJet rose by 6.5 percent of hopes of the sale, according to Indian-based financial website Moneycontrol.com.

However, both airlines denied talks about any sale earlier this year, according to the website.

Akbar al-Baker, CEO of Qatar Airways, denied interest in January in investing in Indian airlines after a large spike in SpiceJet’s share price.

In September 2012, India’s government relaxed regulations on foreign investment in civil aviation, now allowing non-native carriers to own up to 49 percent of Indian airlines.

As a result of the new rules, the Indian government recently approved a $330m deal by Abu Dhabi-based carrier Etihad Airways to buy a stake in India’s Jet Airways.