Qatar Airways Acquires 25% Stake in South African Airline Airlink
Qatar Airways is set to take a 25% stake in the South African private airline Airlink, with the investment value remaining undisclosed.
The shared goal of both airlines is to expand their services and passenger numbers in Africa. The investment will enable the Qatari giant to access passengers in major cities on the continent more easily. Meanwhile, Airlink is expected to experience faster growth and, eventually, operate larger aircraft on certain routes. The project remains entirely focused on Africa, with no intention of expanding beyond the continent.
The 25% stake represents the maximum foreign ownership allowed by South African authorities for airlines. Qatar Airways will obtain two seats on Airlink's 14-member board of directors and hold 25% of the voting rights.
Qatar Airways is also in talks to acquire a minority stake in RwandAir in Rwanda and has agreed with the Rwandan government to take a majority stake in a new international airport in the country.
Airlink, which serves over 45 destinations in 15 African countries, and RwandAir operate on several of the same routes. As Qatar Airways becomes more involved with RwandAir, it is likely to rationalize redundant activities. Expectations are converging towards an interline or codeshare agreement between the three airlines in the coming years. Airlink has already concluded a codeshare agreement with Qatar Airways, allowing both airlines to sell tickets on flights operated by either carrier.
It's worth noting that a few years ago, there were chances of a close cooperation between Tunisair and Qatar Airways. However, political games at the time made any rapprochement, in any form, impossible.
