Qatar Airways procures 9.6% stake in Cathay Pacific Airways

Date: 2017-11-06   Author: Saipriya Iyer  Category: #market

Qatar Airways procures 9.6% stake in Cathay Pacific Airways

The renowned Middle East airline, Qatar Airways, has recently announced its plans to buy a 9.6% stake in Cathay Pacific. Reportedly, the Doha based airline will complete the deal by buying Cathay’s stake from Hong Kong based Kingboard Chemical Holdings Ltd. and related companies for an amount of USD 903 million. Experts cite that the move will significantly aid Qatar Airways to establish a strong foothold in World’s second largest aviation market.

The procurement is claimed to be the first ever investment by a Middle Eastern airline in East Asian carriers. As per reliable sources, the deal would not only position Qatar Airways to be the third largest stakeholder in Cathay, but at the same time would provide it a direct access to China, which in all likelihood, would peg the title of the world’s largest aviation market within a decade.

For the record, the deal comes just a few months after Qatar Airways’ much-hyped investment in American Airlines Group went in vain. Reportedly, those investment plans were critically analyzed, amidst a backdrop when Qatar was apparently dead-locked in the region’s diplomatic crisis and legal airspace disputes with three other Gulf states.

Cathay Pacific Airways, the Hongkong based airline, reportedly, has been trying to regain its lost position in the aviation business space over the past two decades, after facing a hard blow from two of its major rivals, Etihad Airways and Emirates Airline. As of Monday, the company faced the highest intraday drop over a span of five months, reporting a depreciation of 4.9% in its share price.

Speaking of the latest venture, both Cathay and Qatar Airways are allegedly the members of OneWorld alliance and are highly optimistic toward building a constructive partnership in the future, cite experts.  Reportedly, the transaction is deemed to be completed later on Monday, with Qatar Airways buying 378.2 million shares in a cash deal of HK$13.65 per share.



About Author


Saipriya Iyer linkdin-boxtwitter

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

Post Recommendents

Omnichannel Customer Engagement Market Growth By Top Companies with Forecast 2027

Author: Partha Ray

Omnichannel Customer Engagement market report outline: major development trends, restraints, CAGR, remuneration forecast, product varieties and their application scope, competitive terrain, COVID-19 impact analysis.

The report on Omnicha...


Leak Detection Systems Market 2020 Emerging Trend and Advancement Outlook 2025

Author: Sachin Pashte

MarketStudyReport.com adds Global Leak Detection Systems Market research focusing on the major drivers and restraints for the key players. It also provides analysis of the market share, segmentation, revenue forecasts and geographic regions of the...


Pacemaker Market with Future Prospects, Key Player SWOT Analysis and Forecast To 2025

Author: Sachin Pashte

Market Study Report adds New Global Pacemaker Market research providing in-depth information about market overview, top vendors, Key market highlights, product types, market drivers, challenges, trends, Pacemaker industry landscape, size and forec...