Qatar Airways has bought a $600 million stake in British Airways-owner IAG to increase its holding to 25.1 per cent, advancing its strategy of building a global portfolio of airline investments, reports Reuters. In an endorsement of the Anglo-Spanish group just weeks before its founder Willie Walsh steps down, Qatar said increasing its stake was evidence of its support for the company and its strategy.
Qatar previously held 21.4 per cent of IAG, which also owns Spanish carriers Iberia and Vueling and Ireland's Aer Lingus. IAG's share price has risen by 52 per cent in the last six months. Shares in IAG were trading up 1.4 per cent at 641 pence in early deals on Wednesday, giving the group a market value of 12.75 billion pounds ($16.6 billion).
State-owned Qatar Airways, one of the Middle East's biggest carriers, has said its investments in other carriers were mostly for financial purposes. It bought some of its holdings after the United Arab Emirates (UAE) and Saudi Arabia banned it from their airspace after a regional political dispute, which Qatar Airways has blamed for its recent losses.
It has minority holdings in international carriers Cathay Pacific and China Southern, and said earlier this month it was interested in doubling its holding in LATAM Airlines Group to 20 per cent and was in talks to buy a 49 per cent stake in Africa's RwandAir.