The deal between Qatar Airways and Airlink is still subject to regulatory approval. Picture: Airlink
Qatar Airways said this week that it will buy a 25% stake in Airlink as both airlines look to grow their footprint in Africa.
Qatar Airways CEO Badr Mohammed Al Meer said on Tuesday that the investment would boost Qatar Airways' access to passengers in regional cities in Africa.
“Our investment in Airlink further demonstrates how integral we see Africa being to our business’ future,” Al Meer said in a statement.
“This partnership not only demonstrates our confidence in Airlink, as a company that is resilient, agile, financially robust and governed on sound principles, but also in Africa as a whole, showing huge potential that I am delighted we are able to help start realising,” he added.
Airlink's CEO, Rodger Foster said that the deal would also allow Airlink to expand on the African continent.
He further hoped that the deal would eventually allow the airline to operate larger aircraft on one or two routes.
“Having Qatar Airways as an equity partner is a powerful endorsement of Airlink and echoes our faith in the markets we currently serve and plan to add to our network,” Foster noted.
“This transaction will unlock growth by providing efficiencies of scale, increasing our capacity and expanding our marketing reach. By bolstering Airlink and its business, this investment will strengthen all of the existing airline partnerships Airlink has nurtured over the years.”
Both airlines have not disclosed how much the deal is worth, but said that it would require regulatory approval.
Qatar’s 25% equity stake in Airlink is the highest stake a foreign company can own in a SA airline, according to regulators.
Airlink’s ownership is held by a number of different entities that include:
Sishen Iron Ore Company Community Development Trust and Asset Manager Coronation - each own a third of the company.
The Foster family own 23% of the airline and 10% is held by the family of Barrie Webb.
Webb co-founded Airlink with the Foster family.
These shareholders will now dilute their stakes proportionally to make way for the 25% investment by Qatar Airways.
The Qatar Airways Group is based in Doha and is owned by the Government of Qatar.
In June, the airline reported a strong financial performance and achieved a record net profit of $1.7 billion (R30.2 billion), according to Forbes.
The group employs more than 43,000 people and said that over the last financial year it carried over 40 million passengers. This was a 26% increase compared to the previous year.
The airline currently flies to over 170 destinations worldwide.
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