CAPA: Qatar Airways unlikely to become major strategic influence on Cathay Pacific

13 November, 2017

CAPA - Centre for Aviation, in a report entitled: 'Cathay Pacific: While Qatar Airways takes 10%, status quo prevails. Air China is long term partner', stated (14-Nov-2017) Qatar Airways is unlikely to become a major influence on Cathay Pacific's long term strategy or compel Cathay to make sweeping changes in the medium term as a result of its recent acquisition of a 9.61% stake in the Hong Kong carrier. Air China and Swire Pacific hold a combined 74.99% stake in Cathay, while Qatar has a minority less than 10% stake and no seat on the carrier's board. The USD662 million Qatar Airways invested to acquire its minority stake is roughly equal to the cost of purchasing several widebody aircraft and thus a relatively minor expenditure for an airline which has ordered hundreds of such aircraft. Qatar's Cathay stake likely brings more opportunity than its stake in LATAM, but less than its stake in IAG and is of far less strategic significance to the Gulf carrier than an stake with American Airlines would have been. The most likely outcome of the acquisition is a continuation of the status quo for Cathay Pacific. [more - CAPA Analysis]