Speculation are rife again, and it's about which southern African airline, on which Middle Eastern carrier Qatar Airways plans to invest in. But we can expect some outcome this time.
Qatar Airways is in talks to buy a stake in South Africa’s SA Airlink as the Doha-based airline seeks to expand its presence on the continent, according to people with knowledge of the matter.
The carrier is considering buying a stake of as much as 20% stake in Airlink, said the people, asking not to be identified because the companies have yet to reach an agreement. Representatives for Qatar Airways and Airlink declined to comment.
The two sides have held detailed talks about an investment from Qatar Airways, which is wholly owned by the Qatari government, although no final deal has yet been reached, according to people familiar with the matter.
Badr Mohammed Al-Meer, the chief executive officer of Qatar Airways, said the carrier was “in the final stage” of investing in an airline in southern Africa.
He didn’t identify the company. At the Farnborough Airshow 2024 this week, he reiterated that the company was in talks with an airline in the region without identifying the target.
No details are available yet on the identity of the carrier or the size of the investment, however, industry speculation has inevitably turned to South African carriers with Airlink, and flag carrier South African Airways mentioned.
Speaking about the carrier’s motivation for the deal, Al-Meer said: “As you know, Qatar Airways has a very big network in Africa where we serve more than 30 destinations. We see the growth in the eastern and western parts of Africa.
“In the northern parts of Africa, we have a very successful collaboration with Royal Air Maroc. The only missing area we want to invest in is central Africa and the south part of Africa,” he said.
In April this year, Rodger Foster, the chief executive of the Airlink, said that the carrier holds relationships with many role players.
“Airlink cannot speak for Qatar Airways. It is one of over 30 valuable global airline partners with which Airlink has commercial partnerships of various shapes, form, and depth,” he said.
At that time he had also mentioned that Airlink is continually searching for new opportunities to grow,
“and it is in this context that we frequently engage in discussion with our various commercial partners”, "Southern Africa is a lucrative market and it is recognised that the country holds plenty of potential."
State-owned Qatar Airways already flies to about 30 destinations across Africa and is looking to expand its network through a series of partnerships and investments.
The carrier is also finalizing the acquisition of a 49% stake in RwandAir. It will have a 60% stake in a new airport that’s being built near Rwanda’s capital as the carrier tries to gain greater scale on the continent that’s seen rising travel demand in recent years.
Qatar Airways is already the largest shareholder of British Airways owner IAG SA, and owns about 10% of Hong Kong-based Cathay Pacific Airways Ltd. and Latam Airlines Group SA.
Industry insiders agree, saying that a capital-intensive sector that creates thousands of jobs should not be deliberately excluded from receiving foreign direct investment of any size.
Airlink CEO Rodger Foster said on Friday that SA's largest regional airline was in talks with several potential partners, which comes after a report that Qatar Airways is at an advanced stage of negotiations to pick up a stake.
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