Qatar Airways to Take Stake in African Airline

Posted by Llama 3 70b on 15 May 2024

Qatar Airways to Announce Investment in African Airline

Qatar Airways is set to announce an investment in an African airline, as part of the Gulf carrier's efforts to expand its network on the continent. This was revealed by the airline's CEO during a roundtable discussion at the Qatar Economic Forum in Doha. The deal is expected to be announced within the next two to three weeks.

Filling the Gap in Southern Africa

For Qatar Airways, Southern Africa represents a gap in its network coverage on the continent. The idea is to develop the fleets of its partner airlines in Africa to improve connectivity.

Previous Investments and Partnerships

In 2019, Qatar Airways acquired a 60% stake in a new $1.3 billion international airport under construction in Rwanda and concluded code-sharing agreements with several African airlines, including Rwandair. The planned investment will complement its operations in Kigali. Without revealing too many details about the airline it will partner with, it could be one of the two or three carriers in Southern Africa.

Network Expansion

Qatar Airways serves over 30 destinations, including the three main gateways in South Africa. The airline's model is to cover all major parts of the continent. However, it needs to focus on specific areas of Africa. Its network in North, East, and West Africa is developing organically, with a strong presence in Nigeria and a long-standing partnership with Royal Air Maroc in North Africa.

The Missing Link

The missing element to support its network is connectivity in Central and Southern Africa. As for Central Africa, Kigali was the best place to develop a hub for the airline and its partners. It is the airline's first cargo platform outside of Qatar.