Having failed in its attempt to acquire approaching 10 percent of American Airlines, Qatar Airways has announced that it is now aiming to buy a 9.6 percent holding in Hong Kong-based Cathay Pacific for US$660 million. The move comes as what will hopefully be the culmination of a two-year attempt to expand the Gulf-carrier’s global franchise.
The buy-in is helped by the fact that both carriers are members of the oneworld frequent flier alliance, enabling passengers to earn and redeem miles on each other’s flights. This move marks the first investment of a Middle Eastern carrier in an Asian airline. Last March American Airlines invested US$220 million for a 2.8 percent equity share in China Southern as it attempts to capture part of the country’s growing travel market. China is predicted to overtake the U.S. over the next two decades as the world’s biggest air travel market.
Qatar’s attempted investment in American Airlines was treated with hostility, particularly as at that time American, Delta and United were publicly accusing Qatar Airways, Etihad Airlines and Emirates of taking advantage of unfair government subsidies, which has been vehemently denied. With American Airlines ending its codeshare agreement with Etihad back in March, the Gulf carrier has announced it will cease flying to Dallas Fort Worth from March 25 next year
Learn more on how AviTrader can expand your market
Please contact
Tamar Jorssen
Vice President Sales & Marketing
+1.778.213.8543
[email protected]
Mailing Address
AviTrader Publications Corp.
Suite 305, South Tower
5811 Cooney Road
Richmond, BC V6X 3M1
Canada
[email protected]
Mailing Address
AviTrader Publications Corp.
Suite 305, South Tower
5811 Cooney Road
Richmond, BC V6X 3M1
Canada