comScore
Active Stocks
Wed Sep 27 2023 15:59:55
  1. Tata Steel share price
  2. 128.15 -0.54%
  1. HDFC Bank share price
  2. 1,527.2 -0.68%
  1. Tata Motors share price
  2. 620.4 0.1%
  1. NTPC share price
  2. 239.35 -0.35%
  1. Infosys share price
  2. 1,467.55 0.51%
Business News/ Companies / News/  Qatar Airways acquires 5% of China Southern Airlines
Back

Qatar Airways acquires 5% of China Southern Airlines

Qatar Airways also owns a 20% stake in British Airways-parent International Consolidated Airlines Group, 10 percent of South America's LATAM Airlines Group SA, 49% of Italy's Meridiana and 9.99% stake in Hong Kong's Cathay Pacific

Photo: ReutersPremium
Photo: Reuters

Dubai/Beijing: Qatar Airways has acquired a 5% stake in China Southern Airlines, the state-owned Gulf carrier said on Wednesday, in a move to gain access to the fast-growing mainland Chinese market.

Qatar Airways also owns a 20% stake in British Airways-parent International Consolidated Airlines Group, 10 percent of South America’s LATAM Airlines Group SA, 49% of Italy’s Meridiana and 9.99% stake in Hong Kong’s Cathay Pacific.

Qatar’s flagship airline has sought new partners and routes after it was blocked last year from flying to the lucrative markets of Saudi Arabia and the United Arab Emirates because of restrictions imposed by those countries.

Saudi Arabia, UAE, Bahrain and Egypt, imposed a political and economic boycott on Qatar since June 2017, accusing it of supporting terrorism, which Doha denies.

China Southern in a separate statement said Qatar Airways may consider increasing its stake in the airline in the next 12 months. Qatar had no previous investment in the Chinese airline.

Qatar Airways is the second foreign carrier that has a stake in China Southern, after American Airlines. The Chinese carrier left the Skyteam airline alliance at the start of the year.

There are opportunities for “us to work together and build a long term relationship in ways that would bring benefits to customers of both airlines," said Qatar Airways’ Chief Executive Akbar al-Baker.

Ajith K, director of Asia transport at UOB Kay Hian, said given that China Southern is the biggest competitor of Cathay Pacific in Greater China, this deal could strengthen the China Southern’s position at the Hong-Kong carrier’s expense.

“Why Qatar is doing, seems to me, one of course is to gain access to the Chinese market. Secondly it’s probably that they are hedging against their bet given they own almost 10 percent in Cathay Pacific."

This story has been published from a wire agency feed without modifications to the text.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Updated: 02 Jan 2019, 06:04 PM IST
Next Story
Recommended For You
Switch to the Mint app for fast and personalized news - Get App