Qatar Airways exits Cathay Pacific stake in $896M strategic shift
Cathay Pacific has revealed plans to invest a substantial $12.9 billion in its fleet and lounges over the next seven years. Meanwhile, Qatar Airways, a major shareholder in Cathay Pacific, has announced its intention to sell its stake in the Hong Kong-based airline.
Qatar Airways, which acquired its 9.6% holding in Cathay Pacific back in 2017 for $662 million, will sell its shares at $1.4 each, fetching approximately $896 million. This sale is part of Qatar Airways' long-term growth strategy, as stated by its CEO, Badr Mohammed Al-Meer.
The sale, subject to shareholder approval, will see Cathay Pacific buy back the shares. Upon completion, Swire Pacific's and Air China's holdings in Cathay Pacific will increase to 47.7% and 37.8% respectively. Despite the sale, Cathay Pacific and Qatar Airways will continue their codeshare and alliance agreements.
Cathay Pacific's significant investment in its fleet and lounges signals a commitment to improving its services, while Qatar Airways' sale of its stake in Cathay Pacific reflects its strategic focus on long-term growth. Both airlines will maintain their partnership, ensuring continued cooperation in the aviation industry.
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