Qatar Airways have now acquired 9.6% of Cathay Pacific Airways for close to US$662 million, making it Cathay’s third biggest shareholder. The move signifies Qatar’s confidence in Cathay Pacific’s ability to overcome its financial struggles, predicted to be the result of increasing competition from Middle Eastern airlines, as well as mainland Chinese and low-cost carriers.
This of course refers to the 2016 case when the airline lost US$73.6 million in its annual revenue, followed by a US$262 million loss in the first half of the year. Additionally, Cathay Pacific has been ramping up its partnerships, such as the codeshare and frequent-flyer collaborations with Star Alliance member, Luthansa earlier this year.
Due to this, Akbar Al Baker, Group Chief Executive of Qatar Airways says: “Cathay Pacific is a fellow Oneworld member and is one of the strongest airlines in the world, respected throughout the industry and with massive potential for the future.”