Qatar’s flag carrier, Qatar Airways has acquired a 25% stake in South African regional airline Airlink in a bid to expand its operations in Africa.
According to Badr Mohammed Al-Meer, CEO of Qatar Airways, the continent which represents 18% of the world’s population is “underserved” and therefore presents a critical opportunity for expansion.
Qatar seeks to capitalise on the continent’s growing demand for air travel, increasing access to passengers from regional cities in Africa. This will ultimately funnel more traffic through Qatar Airways’ Doha hub.
Airlink, which serves over 45 destinations across 15 African countries with a fleet of more than 65 aircraft, provides Qatar Airways with a robust platform to funnel more traffic through its Doha hub.
This partnership is expected to unlock new growth opportunities for both airlines, including expanded capacity and marketing reach.
“Our investment in Airlink further demonstrates how integral we see Africa being to our business’ future. 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,” Al-Meer said.
Qatar Airways’ expansion to Africa and beyond
The move is the latest in a series of acquisitions that have seen Qatar Airways expand its portfolio and reach. For instance, the airline acquired a 25% stake in British Airways’ parent company International Airlines Group.
It also holds 10% stakes in Latam Airlines and Hong Kong’s Cathay Pacific Airways, as well as 3.4% in China Southern Airlines.
Moreover, Qatar Airways is finalizing a 49% investment in Rwanda’s state-owned airline, RwandAir, in a bid to further bolster its African network.
These investments are part of Qatar Airways’ broader strategy to establish a strong foothold in Africa. The new partnership with Airlink and RwandAir are the last steps in the airline’s expansion into Africa, CEO Al-Meer said.
What does this mean for Airlink?
Having Qatar Airways as an equity partner is a major endorsement of Airlink’s business model and market strategy.
According to Rodger Foster, CEO of Airlink, this partnership will help the airline scale up operations, increase capacity, and expand its network.
The investment is also expected to strengthen Airlink’s existing partnerships with other airlines.
The partnership is expected to support Airlink’s efforts to break into new markets, particularly in Central and East Africa.
The airline has also been aiming to enter the narrowbody market to better compete on domestic point-to-point routes and strengthen its position in the saturated South African market. With the backing of Qatar Airways, the South African airline is better placed to overcome any obstacles hindering its entry into said markets.
“Having Qatar Airways as an equity partner is a powerful endorsement of Airlink, and its business and echoes our faith and optimism in the markets we currently serve and plan to add to our network,” Foster stated.
