Gulf Arab airlines have teamed up to establish hotels and airline services in India in a bid to increase their share of the lucrative Indian market.

The Manama-based regional carrier Gulf Air, the Dubai-based Emirates and Kuwait Airways Corporation have joined the Indian Taj hotel chain to establish a $43 million hotel next to Bombay international airport. The three airlines will take a 70 per cent stake in the five-star, 350- room hotel, Reuters quotes aviation officials in Dubai as saying.

The three airlines, with Saudi Arabian national carrier Saudia, have also taken a 70 per cent stake in a catering project, again with the Taj group, to build an in-flight kitchen at Bombay airport. The project is due to be completed in 18 months.