Airlink Refutes Speculation of Firm Investment Deal with Qatar Airways

Airlink (South Africa) (4Z) has dismissed ongoing speculation about a potential investment from Qatar Airways (QR). Despite reports suggesting that Qatar Airways is nearing a deal to acquire a stake in the South African carrier, Airlink’s CEO and Managing Director Rodger Foster has clarified the situation.

Responding to a Bloomberg report, Foster emphasized, “Airlink is always exploring opportunities and is in conversations with several existing airline partners. However, we have not committed to any binding strategic equity investment in Airlink.” This statement came amid rumors fueled by a Financial Times article claiming detailed discussions were ongoing between the two airlines, although no conclusive agreement had been reached.

The speculation gained traction following remarks by Qatar Airways Group CEO Badr Mohammed Al-Meer at the Farnborough Air Show on July 23. Al-Meer hinted at an advanced stage deal with a southern African airline, which he did not name, to complete Qatar Airways’ network coverage in Africa. This statement led to media conjecture that Airlink, along with South African Airways (SA), might be the potential partners.

Foster highlighted Airlink’s strategic approach towards growth, noting the airline’s focus on evaluating mergers and acquisitions to tackle narrowbody competition on domestic routes and consolidate the crowded South African market. “We maintain ongoing communication with our global partners and always explore opportunities for collaboration. Some of them are candidates for possible closer cooperation,” he added.

Airlink’s partnership considerations also involve existing relationships with other major airlines, including Emirates, with whom Airlink has a significant feeder and codeshare agreement. This relationship, among others with United Airlines, Lufthansa, British Airways, and Swiss, would be a factor in any forthcoming decisions regarding strategic investments.

The backdrop to these developments includes a regulatory challenge before South Africa’s International Air Services Council concerning ownership and control regulations, which currently cap foreign investment in South African carriers at 25%. Airlink and Lift Airlines (GE) are awaiting a decision on this matter, which has been further complicated by administrative delays due to a funding review by the Department of Transport.

As the situation evolves, Airlink continues to prioritize strategic partnerships and operational enhancements while navigating the complexities of potential investments and regulatory landscapes.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com