Qatar Airways buys 9.6% stake in Cathay

Reuters

The two carriers codeshared on each other's services between the two cities, with Cathay also placing its CX airline code on Qatar-operated services beyond Doha to points in Europe, the Middle East and South America and Qatar adding its QR airline code on selected Cathay-operated flights to Australia, Japan, New Zealand and South Korea.

This investment further supported Qatar Airways' investment strategy which already included a 20 per cent investment in International Airlines Group, 10 per cent in LATAM Airlines Group and 49 per cent in Meridiana.

The stake by Qatar in Cathay will give the airline a third shareholder that is strategic behind Air China Ltd and Swire Pacific, possibly complicating its plan for restructuring, whose goal is to slash costs of HK$4 billion during the next three years.

Cathay shares fell 1.5 per cent on Monday, while the benchmark Hang Seng Index finish almost unchanged.

Qatar Airways on Monday has bought a stake in Cathay Pacific, giving the Doha-based airline a toehold in the potentially lucrative Asian aviation market.




"Moreover, Air China and Qatar Airways have non-economic political interests given that they are state-owned enterprises", Png said.

Separately, Qatar Airways chief executive Akbar Al Baker said: "Qatar Airways is very pleased to complete its financial investment in Cathay Pacific".

Kingboard expects to reap an 800 million Hong Kong dollar ($102 million) profit from selling its Cathay stake, the company said in the filing.

Cathay shares traded up at HK$13.00 in the afternoon after falling by nearly 5% to HK$12.56 at one point during the morning session. The airline cut 600 jobs in May as part of measures to rebound from its losses.

However, the airline said at the time that it would continue to invest in its frontline capabilities to deliver "high-quality products and services to its customers".

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