LONDON/BERLIN: Qatar Airways has bought a stake worth about £1.15bn ($1.7bn) in the owner of British Airways and Iberia, aiming to forge closer links to a group with two major European hubs and strong transatlantic networks.
The Gulf airline, which disclosed a 9.99 percent holding yesterday, already partners International Consolidated Airlines Group (IAG) in the oneworld alliance and has limited code-sharing deals and a freight partnership with BA.
Buying the stake could deepen the relationship, giving Qatar greater access to destinations served by IAG’s London and Madrid hubs, particularly transatlantic, with North America well served by British Airways and South and Central America by Iberia.
On IAG’s part, the tie-up will create opportunities in southeast Asia, India and the Middle East, where Qatar has an extensive network, while also giving it a wealthy long-term backer whose support could be useful in funding future growth.
Neither party said whether IAG had been aware Qatar was building the stake and did not say who the shares had been bought from, or when.
REUTERS
