Qatar takes a stake in Latin American airline

The $613 million deal, undertaken through a capital increase, promises to deliver longer-term strategic benefits in areas like network development and codeshares.

“LATAM represents an excellent opportunity to invest and support the development of our long-term relationship,” says Qatar Airways group chief executive Akbar Al Baker.

The deal will involve Qatar Airways paying $10 a share for the $613 million total. LATAM’s shares are currently being traded at $7.
LATAM was approached by its Oneworld alliance partner about a potential deeper link-up some six months ago, according to the Latin American airline CEO Enrique Cueto. “We had not been seeking an investor of this kind but the move did come at a good moment in view of the turmoil in the Brazilian economy. We are suffering with the price of our shares,” he said.
"LATAM represents an excellent opportunity to invest and support the development of our long-term relationship," says Qatar Airways chief executive Akbar Al Baker.
Qatar already has a stake in another Oneworld partner, IAG, which it recently lifted to 15%.
Meanwhile, Flightglobal has reported that Qatar Airways is in talks with Boeing over a potential order for up to 30 737s are Al Baker said are “quite advanced” as he examines alternatives to his stalled Airbus A320neo deal.

The Qatari flag carrier is at an impasse with Airbus and Pratt & Whitney over teething problems that the re-engined airliner has suffered. These issues prompted the airline to trigger the walk-away clause in its contract for the first of its aircraft earlier this year.

Al Baker reported that there had been “no progress” in the discussions with Airbus and P&W over the A320neo, and “we will continue walking away until the problem is resolved”.

Qatar is now “actively talking” to Boeing about a deal for 25-30 737s – a mix of NG and Max aircraft, he says. “We would also look at 737NG because the Max is still not certified,” he told the UK-based aviation insight company.