Qatar Airways, the state-owned flag carrier of Qatar, has stepped up its efforts to become a leading global airline by taking a ten percent stake in International Airlines Group (IAG). The British-Spanish multinational holding company is the owner of both the UK’s leading airline British Airways and Spain’s flag carrying Iberia, as well as budget airline Vueling.
EU rules mean that IAG must be at least half owned by European investors
Qatar Airways’ purchase of nearly ten percent of the company underlines its ambitions to play a major role in the global aviation industry. The Doha-based company, founded in 1993, has a fleet of 152 airlines and travels to 146 destinations worldwide. It is already a member of the Oneworld alliance, and became the first Gulf airline to join the group headed up by IAG Chief Willie Walsh.
Walsh has welcomed the news of Qatar Airways investment, telling reporters that he would be looking at ways the two groups could combine their operations in the future. “We will talk to them about what opportunities exist to work more closely together and further IAG’s ambitions as the leading global airline group.”
The deal, worth a reported £1.1bn, will see IAG gain access to Qatar Airways’ strong network throughout Asia and the Middle East. At the same time, the Gulf airline will get greater exposure to Iberia’s routes across South America. While it has hinted it may look at increasing its stake in the future, EU rules mean that IAG must be at least half owned by European investors.
In a statement announcing the deal, Qatar Airways CEO Akbar Al Baker said the stake in IAG “represents an excellent opportunity to further develop our westwards strategy.”
The airline industry has been undergoing a period of consolidation lately, with IAG looking to acquire budget Irish airline Aer Lingus for £1.3 bn. The group was formed after the merger of British Airways and Iberia in 2011, creating a 430 strong fleet.
