Qatar Airways buys 25% stake in SA’s Airlink

Qatar Airways has acquired a 25% stake in independent SA regional airline Airlink, ending weeks of speculation about a deal being on the cards.

SA law limits foreign ownership of SA airlines to 25%.

According to Qatar Airways, the investment is a continuation of its ambition to develop operations across the African continent. Since Airlink flies to more than 45 destinations in 15 African countries, Qatar said this would enhance the existing code-sharing partnership between the two airlines. Qatar Airways now flies to 29 destinations on the continent.

Qatar Airways group CEO Badr Mohammed Al-Meer said in a statement that the airline’s investment in Airlink demonstrated how integral Africa was to the future of its business. “This partnership not only demonstrates our confidence in Airlink, as a company that is resilient, agile, financially robust and governed on sound principles, but also in Africa as a whole, showing huge potential that I am delighted we are able to help start realising,” he said.

Airlink CEO Rodger Foster said having Qatar Airways as an equity partner was a powerful endorsement of Airlink. “This echoes our faith in the markets we currently serve and plan to add to our network,” Foster said.

“This transaction will unlock growth by providing efficiencies of scale, increasing our capacity and expanding our marketing reach. By bolstering Airlink and its business, this investment will strengthen all of the existing airline partnerships Airlink has nurtured over the years.”

Airlink had always been exploring opportunities and was in conversations with several existing airline partners, he said.

At the official announcement in Doha, Foster said the deal marked a major milestone for Airlink.

“Qatar is highly respected, has a wide and formidable network, and continually raises the bar. It has already been a strong commercial partner to Airlink over the years.

“The investment is a vote of confidence in Airlink, our business model and our commitment to our customers. This fresh equity will enable us to grow faster and enhance our competitiveness in all areas.”

Foster said it was not only about the equity but also about Qatar’s expertise and global reach, which can provide a robustness to Airlink’s strategy and expanding network.

“It will enable us to build a rich, dense network. Rich in terms of frequencies. So, strategically we will be looking at expanding our destinations and also offering more frequencies.

“We will continue to build on what we know how to do well and will not get ahead of ourselves,” said Foster.

Part of the new partnership deal will involve an attempt to align both carriers’ loyalty programmes: the Qatar Airways Privilege Club and Airlink’s Skybucks.