Qatar Airways Purchases 25% Stake in South African Airline Airlink

Qatar Airways has announced its latest move in its global expansion, purchasing a 25% equity stake in South Africa's Airlink. This agreement is said to be fruitful for both parties in terms of their future aspirations.

Qatar's African Expansion

In a press release on Tuesday morning, the Doha-based airline claims the deal with Airlink was made in order to expand Qatar's reach across Africa and increase revenue made in the continent. Airlink will remain its own majority owner and will continue to operate under its own name. 

Airlink at the moment is classified as a regional airline, flying to 45 destinations in 15 countries, including to its home base in Johannesburg, South Africa. Airlink officials hope this new equity stake gives the airline more name recognition and an increase in customers. As of now, Qatar flies to 29 destinations in Africa. 

For though curious about both airlines' loyalty programs, it's expected that both will merge at some point in the future. Currently, Qatar Airways has the Privilege Club, while Airlink markets flights with Airlink Skybucks.

Airlink CEO Rodger Foster had this to say about Tuesday's news:

“Having Qatar Airways as an equity partner is a powerful endorsement of Airlink and echoes our faith in the markets we currently serve and plan to add to our network. This [deal] will unlock growth by providing efficiencies of scale, increasing our capacity, and expanding our marketing reach.”

Another Qatar Deal In The Works?

In 2020, Qatar Airways publicly expressed interest in a 49% stake in RwandAir. Qatar would receive $28 million out of $57 million in shareholder equity, with RwandAir remaining the majority owner.

Both Qatar Airways and RwandAir had talks as late as 2022 about a potential partnership. RwandAir CEO Yvonne Manzi Makolo also told reporters earlier this year that a deal was close to being finalized.

So far, there has yet to be any new updates involving a deal between the two parties. Perhaps the deal fell through at some point, leading to talks with Airlink, or Qatar had been speaking with multiple suitors and decided Airlink was the most beneficial.

Qatar Airways is also funding the construction of a new airport in Kigali, Rwanda, which is expected to be finished by 2027.

The Doha-based airline recognizes that air travel in Africa is on the rise, with many airports in development or renovation to accommodate more travelers. This deal comes off the heels of Ethiopian Airlines investing $6 billion to build a "Mega Airport City" near Bishoftu.
 

Qatar Airways currently is a minority owner of other foreign airlines, such as Cathey Pacific in Hong Kong and Latam Airlines in Chile. A solid 20% stake was also placed in the International Airlines Group (IAG), which is the parent company of British Airways.

This deal seems like a win-win situation for both airlines, as Qatar can operate in more African countries, and Airlink will see better business overall with the Qatar branding attached. While Qatar not closing a deal with a bigger airline is a head-scratcher for some, the folks at Airlink seemed to have been business savvy enough to win over the likes of CEO Badr Mohammed Al-Meer.

But what are your thoughts? Is Qatar poised to take over Africa's air travel market with this new investment? Let us know your thoughts in the comments section below!