Qatar Airways buys $600m stake in British Airways owner IAG
Qatar Airways has upped its holding in British Airways owner IAG to 25.1 per cent after buying an additional $604m (£465m) stake in the airline group.
The Middle Eastern carrier previously owned a 21.4 per cent stake in IAG, which has seen its share price rise 52 per cent in the last six months.
The move, which is in line with Qatar Airways’ policy of building a global group of carriers, is a vote of confidence in IAG, whose chief executive Willie Walsh is due to step down in the coming weeks.
Walsh was responsible for the creation of IAG in 2011, overseeing the merger of British Airways and Iberia. Upon stepping down, Walsh will be replaced by current Iberia chief Luis Gallego.
IAG also owns Aer Lingus, Iberia, Vueling and Level.
In November IAG agreed a €1bn deal to acquire rival Air Europa in a bid to bolster its presence in the South Atlantic.
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Qatar Airways has been increasing its investments in other carriers due to a regional dispute which has seen the UAE and Saudi Arabia freeze the Gulf state out of their airspace.
It has minority holdings in Cathay Pacific and China Southern, the former of which recently warned about the coronavirus’ threat to its business, as well as stakes in Latam Airlines, Latin America’s largest carrier.
Qatar Airways group chief executive Akbar Al Baker said: “Our investment to date has been highly successful and the announced increase in our shareholding is evidence of our continued support of IAG and its strategy.”
The airline first invested in IAG in 2015 when it initially bought a 9.99 per cent stake, and it has been increasing its holding since then.
Shares in IAG rose 1.3 per cent as markets opened.