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Wednesday, 21 August 2024

Qatar Airways Expands Its African Market Presence, Acquires 25% Stake in SA's Airline Airlink


Qatar Airways has taken a significant step in expanding its influence in the African aviation sector by acquiring a 25% stake in South African regional airline Airlink. The investment aligns with Qatar Airways' strategic plan to strengthen its foothold across the continent.

Airlink, which operates in 15 African countries, is expected to benefit from this partnership through an enhanced code-sharing agreement with Qatar Airways, offering passengers more seamless travel options across their networks.

Badr Mohammed Al-Meer, Qatar Airways Group Chief Executive Officer, emphasised the importance of this acquisition, highlighting the airline's commitment to contributing to Africa's economic growth and underscoring the continent's crucial role in the company's future plans. He praised Airlink for its resilience and strong governance, expressing eagerness to tap into Africa's vast potential.

Airlink Chief Executive Rodger Foster welcomed Qatar Airways' investment as a strong endorsement of Airlink's business model and future prospects. Foster expects the partnership to drive growth by improving operational efficiencies, expanding capacity, and broadening market reach, which will enhance the benefits of existing partnerships.

The collaboration will also integrate the loyalty programs of both airlines—Qatar Airways Privilege Club and Airlink Skybucks—offering more rewards and benefits to frequent flyers. Qatar Airways continues to expand its African network, currently serving 29 destinations, with recent additions including Abuja, Accra, Harare, and Kinshasa since December 2020.

This acquisition comes as the South African aviation market experiences a surge in activity, with several international airlines expanding their services. Lufthansa is set to introduce direct flights between Johannesburg and Munich, as well as seasonal flights between Cape Town and Munich, starting later this year. Meanwhile, Norse Atlantic Airways is launching a new route between London Gatwick and Cape Town, challenging established players like Virgin Atlantic and British Airways with competitive pricing.

South African Airways (SAA) is also ramping up its operations, having resumed flights to Perth, Australia, in April and planning a 50% fleet expansion by March next year. Despite challenges with its private equity deal involving the Takatso Consortium, SAA remains financially prepared for growth, with new routes to Frankfurt, Munich, London, and U.S. east coast cities under consideration for the next fiscal year.

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