Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The chief executive of Qatar Airways has signalled the Gulf airline is on the hunt for more deals after buying a stake in South Africa’s Airlink.
Qatar Airways on Tuesday acquired a 25 per cent stake in Airlink, which flies to more than 45 destinations in 15 African countries, as part of an expansion of its operations on the continent.
“We already have a big basket of investments . . . we will not shy away from investing in other airlines if we see there is potential to collaborate and work together,” Qatar Airways chief executive Badr Mohammed Al-Meer told the Financial Times.
Qatar Airways has already built up a significant portfolio of investments, including a 25 per cent stake in British Airways owner International Airlines Group. It also holds 10 per cent stakes in Latam Airlines and Hong Kong’s Cathay Pacific Airways, as well as 3.4 per cent in China Southern Airlines.
Al-Meer said Qatar Airways is also “working very closely to finalise” a long-planned investment for 49 per cent of RwandAir, Rwanda’s state-owned airline.
The investment is designed to increase its access to passengers from regional cities in Africa and ultimately funnel more traffic through its Doha hub.
“Africa is very important for us . . . Africa represents 18 per cent of the world population, and it is really underserved as a continent,” Al-Meer said.
Deals with Airlink and RwandAir would represent the “last part of the equation” in Qatar Airways’ African expansion, he added.
Demand for air travel is forecast to grow rapidly in Africa as economies develop, but the continent’s aviation market has yet to live up to its potential.
A 37-country initiative to liberalise rules over the continent’s airspace was launched in 2018. However, the Single African Air Transport Market has not been fully implemented, in part due to countries protecting their national carriers from competition.
Airlink, which has more than 65 aircraft, carries more than 3mn passengers every year to destinations in 15 sub-Saharan African countries. Qatar Airways did not disclose financial details of the deal, which was first reported by the FT last month.
“Having Qatar Airways as an equity partner is a powerful endorsement of Airlink, its business and echoes our faith and optimism in the markets we currently serve and plan to add to our network,” said Airlink’s chief executive Rodger Foster.
Additional reporting by Rob Rose in Johannesburg
Read the full article here