Qatar Airways Invests in South Africa’s Airlink with 25% Stake

Qatar Airways Group has confirmed its strategic investment in South Africa’s Airlink, securing a 25% equity stake in the regional airline. This move follows extensive media speculation and aligns with Qatar Airways’ ongoing strategy to strengthen its presence across Africa.

In a joint announcement made on August 20, Qatar Airways and Airlink highlighted the significance of this partnership in advancing Qatar Airways’ vision for African expansion. Badr Mohammed Al-Meer, CEO of Qatar Airways Group, emphasized the importance of Africa in the airline’s future growth strategy. “Our investment in Airlink reflects our confidence in both the airline and the continent,” Al-Meer stated. “This partnership underscores our commitment to Africa’s potential and supports Airlink’s proven resilience and financial stability.”

Rodger Foster, CEO and Managing Director of Airlink, welcomed Qatar Airways as a key equity partner. He noted that this investment would enhance Airlink’s growth prospects by providing economies of scale, boosting capacity, and broadening marketing reach. “Having Qatar Airways onboard is a powerful endorsement,” Foster said. “It will unlock new growth opportunities and strengthen our existing airline partnerships.”

The announcement comes after Al-Meer’s hint at the Farnborough Air Show in July about Qatar Airways’ intentions to invest in a Southern African carrier. The airline is also finalizing a 49% stake in RwandAir, aiming to complete its African network which previously lacked Southern Africa.

For Airlink, the new investment opens avenues for expansion, particularly in the narrowbody aircraft market. As Airlink consolidates its fleet around the Embraer E190, the partnership with Qatar Airways will assist in exploring fleet planning opportunities. Foster mentioned the need for larger aircraft on certain routes and indicated that Qatar Airways’ involvement will be crucial in addressing these needs.

Airlink is also looking to expand its routes into Central and East Africa, potentially entering markets like Kigali, which are currently dominated by RwandAir. Foster highlighted that the partnership with Qatar Airways might ease entry into such markets.

Airlink currently has six codeshare agreements, including one with Qatar Airways, and serves as a feeder for competitors like Emirates. The future of this relationship remains uncertain with the new investment.

Under South African regulations, foreign ownership in local airlines is capped at 25%, which Qatar Airways’ investment adheres to. This regulation is currently under scrutiny in Pretoria, with a decision delayed due to administrative backlogs.

The collaboration will also see the alignment of loyalty programs between Qatar Airways and Airlink. Qatar Airways currently operates flights to 29 African destinations, with significant growth in the region, including nine new routes since December 2020.

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