It seems Qatar Airways Group has increased its stake in International Airlines Group to 25.1% in a release announced today.
The move itself is valued at US$600 million.
Qatar Airways Airbus A330-300 at Hamad International Airport – Image, Economy Class and Beyond
IAG – of course – hold the ownership of Aer Lingus, British Airways, Iberia, LEVEL and Vueling. It is in the process of acquiring Air Europa to, to add to its European stable.
The move by the Qatar Airways Group increases its holding from 21.4% to 25.1%. The group initially purchased 9.9% of IAG in 2015 and has been increasing its holdings since then.
Qatar Airway Group has other holdings in airlines as part of its investment strategy – these including holding is LATAM (which it is considering taking to 20%), China Southern and Cathay Pacific. The airline also held 49% of Air Italy (sadly – we all know what happened there).
In Quotes
Qatar Airways Group Chief Executive Mr Akbar Al Baker stated,
“Our investment to date has been highly successful and the announced increase in our shareholding is evidence of our continued support of IAG and its strategy.”
“Qatar Airways continues to consider opportunities to invest in airlines and support management teams that share our vision to enhance travel opportunities for airline passengers across the globe.”
A vote in the future
IAG is going through a period of change as Willie Walsh prepares to step down from the chairmanship and leave the group, whilst Luis Gallego (from the Iberia side of IAG) takes over.
It seems the moves that IAG is taking seem to be pleasing to its investors… and to Qatar Airways Group, who seems to be happy to spend the money on more ownership shares.
As for Qatar Airways Group, I suspect after getting their fingers burned with Air Italy, they will be looking for stability in their investments – rather than a chance to grow an empire.
However, with a planned 49% investment in Rwanda Air… anything is possible…
Welcome to Economy Class and Beyond – Your no-nonsense guide to network news, honest reviews, with in-depth coverage, unique research as well as the humour and madness as I only know how to deliver.
Follow me on Twitter at @EconomyBeyond for the latest updates! You can also follow me on Instagram too!
Also remember that as well as being part of BoardingArea, we’re also part of BoardingArea.eu, delivering frequent flyer news, miles and points to the European reader.
