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PR: The investment will further cement Qatar Airways’ position as a key driver in realising economic and business potential on the African continent
20 August 2024
Qatar Airways Group has acquired a 25% stake in Southern Africa’s premier independent regional carrier, Airlink. The announcement is a continuation of the multi award-winning airline’s ambition to further develop its operations across the African continent. The investment in Airlink – which flies to more than 45 destinations in 15 African countries – will enhance a code-sharing partnership between the two airlines. The deal will bolster the World’s Best Airline’s Africa growth strategy and cement its role as a key driver to the continent’s economic success.
On the announcement, Qatar Airways’ Group Chief Executive Officer, Engr. Badr Mohammed Al-Meer, said: “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.”
Airlink Chief Executive Rodger Foster said: “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. 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.”
The partnership between Qatar Airways and Airlink seeks to align both carriers’ loyalty programs – Qatar Airways Privilege Club and Airlink Skybucks. Qatar Airways currently flies to 29 destinations in Africa, and there’s been strong growth in the market with nine new destinations added to the Qatar Airways network on the continent since December 2020. Abidjan, Abuja, Accra, Kinshasa, Harare, Kano, Luanda, Lusaka, and Port Harcourt are the African cities newly added to the extensive Qatar Airways network, while Cairo and Alexandria were resumed.
- The good news is that Airlink now has a capital injection
- The capital can be deployed to strengthen its balance sheet
- However, it also provides working capital to start a fleet refresh of the regional jet segment, which is very important for Airlink. There is no urgency, as that process is likely a five-year plan.
- The move also ensures that Airlink remains the most attractive South African-based airline for codesharing opportunities.
- It’s less clear how Qatar Airways benefits from this. Almost certainly, Qatar Airways will try to lock up any feed and distribution of traffic going over the Middle East. In that respect, the deal might be considered a move against Emirates. However, Emirates is already so prominent in this market that this deal may not have any significant impact.
- The South African airline market is not for the faint-hearted.
