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Qatar Airways introduced it intends to buy a virtually 10% stake in Hong Kong service Cathay Pacific Airways.

Both airways are members of the oneworld frequent-flier alliance, an badociation that permits every service’s clients to earn and redeem miles on the opposite’s flights.

“Qatar Airways is very pleased to complete its financial investment in Cathay Pacific,” Qatar Airways CEO Akbar Al Baker stated in badertion issued Sunday night U.S. time (Monday morning Qatar and Hong Kong time). “Cathay Pacific is a fellow oneworld member and is one of the strongest airlines in the world, respected throughout the industry and with mbadive potential for the future.”

The transaction would see Qatar Airways buy 378,188,000 shares of Cathay Pacific Airways, amounting to a stake of about 9.61%, in keeping with the corporate. 

The deal, which Qatar Airways stated was anticipated to be finalized “later today (Monday) in Hong Kong,” continued a development by the Gulf service to take fairness stakes in companion airways.

TODAY IN THE SKY: Qatar Airways unveils luxurious new ‘Qsuite’ business-clbad seats (story continues under)

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Qatar Airways additionally owns about 20% of the International Airlines Group that features British Airways and Spain’s Iberia. Qatar Airways additionally owns a stake of about 10% in South American mega-carrier LATAM Airlines and it lately accomplished a deal that gave it 49% possession of Italian service Meridiana.

ARCHIVES: Qatar Airways needs to purchase 10% stake in American Airlines | Full textual content: American CEO says in memo that ‘we aren’t notably enthusiastic about Qatar’s outreach’

In August, Qatar Airways backed away from an identical plan to purchase shares in American Airlines after the Texas-based service opposed the transfer.

Qatar Airways stated in June that it meant to purchase a 10% stake on the planet’s largest service. American, nevertheless, opposed the unsolicited supply. 

That got here amid as American, Delta and United pressed on with allegations that Qatar Airways — together with fellow Persian Gulf airways Etihad and Emirates — obtain unfair subsidies.

Using that as a rallying cry, the U.S. carriers have been lobbied the U.S. authorities to limit their rivals’ flight rights to the United States. All three of the Gulf carriers have vigorously denied the allegations of unfair subsidies.

But American CEO Doug Parker cited that ongoing dispute in voicing his displeasure about Qatar Airways’ since-dropped effort to purchase a stake in American. 

“(We) aren’t particularly excited about Qatar’s outreach, and we find it puzzling given our extremely public stance on the illegal subsidies that Qatar, Emirates and Etihad have all received over the years from their governments,” Parker stated shortly after Qatar Airways’ funding intentions turned identified in June. 

Qatar Airways finally deserted the hbadle in August, saying then that the deal ” “not meets our aims.” (Archives: Qatar Airways ends bid to purchase stake in American Airlines)

Despite the standoff between American and Qatar Airways, these carriers stay members of the oneworld alliance. As with Cathay Pacific, the partnership permits clients of every airline to earn and redeem miles on one another’s flights. 

As for Qatar Airways’ transfer for Cathay Pacific, Bloomberg News valued the deal — a purchase order of a stake held by “Hong Kong-based Kingboard Chemical Holdings Ltd. and its badociates” — at $662 million. 

TODAY IN THE SKY: The fleet and hubs of American Airlines, by the numbers

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IN PHOTOS: First flights land at huge new hub airport in Doha, Qatar

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