Qatar Airways Buys Stake In IAG

Qatar Airways A7 ACE EDDF

Photo: Creative Commons/Wo st 01

Qatar Airways, one of the leading plane operators in the aviation industry, recently purchased a 1.7 billion dollar stake in British Airways-parent International Consolidated Airlines Group according to the Wall Street Journal.The recent purchase was a business move made by Qatar in an attempt of further improving ties between Middle East growth carriers and Europe’s aviation sector in charter planes.

Qatar Airways is currently the second ranked Persian Gulf plane charter, and is competing with Emirates Airlines, the world’s biggest plane hire carrier by international traffic. Qatar Airways’s has previously invested into the EU airline industry, acquiring a 35% stake in Cargolux in 2011, one of the biggest jet hires in the world specializing in cargo distribution. Despite the large investment, Qatar would later pull out of the deal just a year later over a significant dispute over strategy with the private jet charter for cargo.

The difficulties surrounding Qatar’s previous investments in Cargolux, poses concern for Qatar’s relationship with IAG as the two organizations establish their relationship moving forward. With a nearly 10% investment into IAG, Qatar will become the largest shareholder for the group, representing the first instance of a Middle East carrier owning such a significant stake in one of Europe’s leading airline groups. Despite potential criticism, the Chief Executives at Qatar and IAG have a long tenured relationship that they believe will produce successful results, despite existing conflicts that have occurred with other European airline executives on how to charter a plane.

Qatar Airways, one of the leading plane operators in the aviation industry, recently purchased a 1.7 billion dollar stake in British Airways-parent International Consolidated Airlines Group according to the Wall Street Journal. (WSJ) The recent purchase was a business move made by Qatar in an attempt of further improving ties between Middle East growth carriers and Europe’s aviation sector in charter planes.

Qatar Airways is currently the second ranked Persian Gulf plane charter, and is competing with Emirates Airlines, the world’s biggest plane hire carrier by international traffic. Qatar Airways’s has previously invested into the EU airline industry, acquiring a 35% stake in Cargolux in 2011, one of the biggest jet hires in the world specializing in cargo distribution. Despite the large investment, Qatar would later pull out of the deal just a year later over a significant dispute over strategy with the private jet charter for cargo.

The difficulties surrounding Qatar’s previous investments in Cargolux, poses concern for Qatar’s relationship with IAG as the two organizations establish their relationship moving forward. With a nearly 10% investment into IAG, Qatar will become the largest shareholder for the group, representing the first instance of a Middle East carrier owning such a significant stake in one of Europe’s leading airline groups. Despite potential criticism, the Chief Executives at Qatar and IAG have a long tenured relationship that they believe will produce successful results, despite existing conflicts that have occurred with other European airline executives on how to charter a plane.

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