FlyEasy (Bengaluru International) is in talks to sell a 49% stake to the UAE-based LCC Air Arabia (G9, Sharjah), two people with knowledge of the matter have told India's Economic Times. The start-up is currently undergoing certification with India's Directorate General of Civil Aviation (DGCA) with plans to operate a fleet of ex-nasair (Saudi Arabia) (Riyadh) E190s.
Though neither carrier would specifically confirm or deny the talks, Air Arabia has said in the past that it views the Indian market with great interest.
Thus far, three foreign operators have secured footholds in Indian carriers including Etihad Airways (EY, Abu Dhabi International) in Jet Airways (JAI, Mumbai International), Singapore Airlines (SQ, Singapore Changi) in Vistara (UK, Delhi International), and AirAsia (AK, Kuala Lumpur International) in AirAsia India (Bengaluru International). Qatar Airways (QR, Doha Hamad International) CEO Akbar al Baker has alluded to acquiring stock in the recently listed InterGlobe Aviation, parent to the country's largest LCC, IndiGo Airlines (6E, Delhi International).
Interest in local carriers is expected to surge should Narendra Modi's government concretize proposals in its draft National Civil Aviation Policy to allow foreign operators to hold more than the current 49% of scheduled local carrier stock. In a bid to further stimulate the sector, government this week further relaxed foreign ownership caps on non-scheduled carriers from the current 74%, to 100%.
