Qatar Airways takes stake in IAG

Qatar Airways today announced it has taken a 9.99% stake in International Consolidated Airlines Group, SA (IAG).
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As part of efforts to enhance operations and strengthen existing commercial ties initiated through codeshare agreements with IAG as well as its membership of the oneworld alliance, Qatar Airways has acquired a 9.99% stake in IAG.

Non-EU shareholders of IAG including Qatar Airways are subject to an overall cap on non-EU ownership as a result of the requirement for EU airlines to be majority owned by EU shareholders. Qatar Airways may consider increasing its stake further over time although this is not currently intended to exceed 9.99%.

“IAG represents an excellent opportunity to further develop our Westwards strategy. Having joined the oneworld alliance it makes sense for us to work more closely together in the near term and we look forward to forging a long-term relationship,” said His Excellency Mr. Akbar Al Baker, Group Chief Executive of Qatar Airways.

Analyst Saj Ahmad commented: "IAG will no doubt welcome the purchase of a stake in its business by Qatar Airways. Not only will this strengthen their partnership as part of the oneworld alliance, there is a greater propensity for both airlines to leverage the strength of their respective networks in Doha and London for customers. While no one is assuming that Qatar Airways will suddenly launch transatlantic services to the USA from Heathrow using its own jets, that possibility does come into one of the future activities as the pair deepen their relationship - especially since the North American market is key to British Airways' financial success and offers passengers extra connections via Heathrow to Doha and Asia and beyond via themselves and Qatar Airways."
 
He added: "The Qatar Investment Authority has made big buys in a raft of businesses in the UK, including Heathrow Airport and this natural business succession of a stake in IAG by Qatar Airways will be one of many. You can bet your buck that Qatar Airways will look to double its investment here."