Shares of InterGlobe Aviation rose nearly 2 per cent after the firm announced today that it has signed a one-way codeshare agreement with Qatar Airways to strengthen connectivity between India and Qatar.
InterGlobe Aviation stock price rose 1.88% to the intraday high of Rs 1496.20 against the previous close of Rs 1468.50 on BSE.
InterGlobe Aviation stock trades higher than its 5 and 200-day moving averages but lower than 20, 50 and 100-day moving averages. As per market depth data on BSE, there was 54% selling against 46% buying on the stock. Volume-wise, shares amounting to 16 lakh (1 lakh on BSE and 15.8 lakh on NSE) changed counters.
Amid the reports of strategic deal announcement between the two airlines over the last 3 days, the share price of InterGlobe Aviation has risen 3.83% and 1.27% in the week. The stock has risen 26.53% year-to-date.
As per the regulatory filing submitted today, Qatar Airways will place its code "QR" on IndiGo operated flights between Doha and Delhi, Mumbai and Hyderabad.
This would be the second codeshare agreement signed by IndiGo, that has about 40% share of the domestic Indian market. As part of its growth strategy for international markets, IndiGo had earlier signed a codeshare deal with Turkish Airlines in April 2019.
Qatar Airways, which reportedly has lowest numbers of seats from and to India compared to other two big Middle-East carriers - Etihad Airways and Emirates, will also benefit from the agreement.
"This strategic alliance will not only strengthen our international operations but also boost economic growth in India, by bringing in more traffic and heralding opportunities for trade and tourism through seamless mobility," said Ronojoy Dutta, IndiGo's Chief Executive Officer.
In a typical codeshare agreement, a flight is operated by one airline also knows as the administrating carrier, while seats are sold for the flight by all cooperating airlines using their own designator and flight numbers.
By Rupa Burman Roy