Qatar Airways acquires 25 per cent stake in Airlink
The partnership between Qatar Airways and Airlink seeks to align both carriers’ loyalty programs - Qatar Airways Privilege Club and Airlink Skybucks.
Doha, Qatar – Qatar Airways has solidified its presence in the African aviation market by acquiring a 25% stake in South African regional carrier Airlink. This strategic move aligns with the airline's broader plan to expand its route network and capitalize on the continent's growing travel demand.
Regulatory approval for the deal is underway, Qatar Airways Group Chief Executive, Badr Al Meer, says
Qatar Airways currently serves 29 destinations in Africa, including major cities like Cairo, Alexandria, Abidjan, Abuja, Accra, Harare, Kano, Luanda, Lusaka, and Port Harcourt. The investment in Airlink will build upon the existing codeshare partnership between the two airlines, allowing passengers to benefit from a wider range of travel options and destinations.
Strengthening African presence
As announced by Badr Al Meer during a press conference, the investment in Airlink is a significant step towards unlocking the vast business and tourism potential of Africa. He emphasized Airlink's financial strength and its reputation for resilience, agility, and extensive connectivity within southern Africa, making it an ideal partner to share Qatar Airways' commitment to the region's development.
While the specific value of the acquisition was not disclosed, Mr. Al Meer confirmed that regulatory approval is underway and that both airlines' commercial operations teams are actively working on a joint strategy to pave the way forward.
Expanding global footprint
This latest investment in Africa adds to Qatar Airways' existing portfolio of minority shareholdings in global airlines. The airline already holds stakes in British Airways' parent company IAG, Hong Kong's Cathay Pacific, China Southern Airlines, and Latam Airlines Group. Furthermore, Qatar Airways has agreed to acquire a 49% stake in RwandAir and has a significant presence in Rwanda through its 60% ownership of the new Bugesera International Airport.
Airlink, a privately owned carrier, operates to over 45 destinations in 15 African countries. Rodger Foster, Airlink's Chief Executive, expressed enthusiasm about the partnership with Qatar Airways, highlighting its endorsement of Airlink's operations and its confidence in the African markets it serves. Foster believes that this investment will unlock growth by providing efficiencies of scale, increasing capacity, and expanding marketing reach.
Collaboration with emirates
Airlink also maintains a codeshare agreement with Emirates, activated in June 2022. This collaboration further enhances connectivity and options for travelers within the African region.
Underserved market with major potential
Africa, with its population of approximately 1.4 billion people, currently accounts for only 2% of global air traffic. This underserved market represents a significant opportunity for both African and international airlines to tap into rising demand.
In June, African airlines witnessed a remarkable 16.9% year-on-year increase in demand, according to the International Air Transport Association (Iata). Capacity rose by 5.8%, and the load factor improved to 77%, the highest among all regions. These figures underscore the growing potential of the African aviation market.