Qatar takes shareholding interest in Cathay Pacific

Reuters

The Middle Eastern carrier said it bought nearly 3.8 million Cathay shares, which represents a 9.6 percent stake in Hong Kong's biggest airline.

"Qatar Airways is very pleased to complete its financial investment in Cathay Pacific".

For Cathay, the Qatar stake will give it a third strategic shareholder behind Swire Pacific Ltd and Air China, potentially complicating a restructuring plan aimed at slashing HK$4 billion in costs over three years.

Elsewhere in Asia, Qatar Airways is looking to establish a division in India that could operate as many as 100 single-aisle planes as Qatar's flagbearer seeks to tap into the world's fastest growing major aviation market. This amounts to 9.61% of Cathay's shares. As a result, the state's airline has lost important routes in the UAE and Saudi Arabia. At the same time the move reasserts the company's global ambitions 4 1/2 months after American Airlines rejected an investment bid. With Cathay Pacific now undergoing hard times as it looks to restructure and streamline, only time will tell if it was a worthy investment by the Gulf Carrier to tap into the Asian market, or merely another airline to add to its repertoire. "Cathay Pacific is a fellow Oneworld member and is one of the strongest airlines in the world, respected throughout the industry and with massive potential for the future".

The stock closed 1.5% lower, while the broader market was flat.


Cathay did not put out a statement, but tweeted that the Swire Group and Air China continue to hold 74.9% of the airline. "This may not necessarily be favorable for Cathay as it is facing operating challenges and undergoing transformation". The transaction is expected to take place later in Hong Kong.

Qatar Airways is not the only airline to look to Asia for further expansion. Kingboard, which makes laminates and copper foil and had been seen as a possible front for a takeover of Cathay, according to Bocom International analyst Geoffrey Cheng, said its investment has yielded a profit of about HK$800 million.

"This investment further supports Qatar Airways investment strategy, which already includes 20% investment in International Airlines Group, 10% investment in LATAM Airlines Group and 49% investment in Meridiana".

In other Qatar Airways-related news, The Times of India reported that a Qatar Airways Doha-Bali flight was diverted to Chennai after an "intoxicated" Iranian woman used her sleeping husband's thumb to open his mobile phone - and discovered messages that she believed showed he was cheating on her.

Related news:

Hot News

isis-killer-beheading-video-story-top Blake Lively debuts shocking transformation on set in Ireland
Nov 08, 2017 - 00:24
Last anything insane online: the picture that Ryan Reynolds has shared with his followers a few hours ago on her over Instagram. At the Lively-Reynolds, the joke has always been a weapon of mass seduction.

isis-killer-beheading-video-story-top Amazon launches Fire TV Stick Basic Edition in over 100 countries
Nov 08, 2017 - 00:22
In addition, customers can set their default language as Spanish, Brazilian Portuguese, French, Italian, German, or English. Although no information was given on the operating system, Android Police speculates that it may be running Fire OS 5.

isis-killer-beheading-video-story-top Broncos sticking with Brock Osweiler
Nov 07, 2017 - 02:12
With regard to the past few years, a trip to Denver would not be the ideal way to kick off the second half of the season. For now, though, it's another spin for Osweiler against a team he beat in his first stint as the Broncos starter in 2015.

isis-killer-beheading-video-story-top Jefferies Group LLC Reaffirms "Underperform" Rating for Polymetal International PLC (POLY)
Nov 07, 2017 - 02:12
TheStreet raised shares of GlaxoSmithKline PLC from a "c+" rating to a "b" rating in a research note on Wednesday, October 25th. Jefferies Group LLC's target price indicates a potential downside of 18.17% from the company's current price.

isis-killer-beheading-video-story-top Here's your exclusive first look at season two of Netflix's 'The Crown'
Nov 07, 2017 - 02:11
The full-length trailer shows what we can expect for the final moments for this time period in Queen Elizabeth's life. Antony Armstrong-Jones ( Matthew Goode ) shoots a portrait session with Princess Margaret ( Vanessa Kirby ).

isis-killer-beheading-video-story-top Husband Of Nazinin Zaghari-Ratcliffe Reacts To Boris' "Damaging" Blunder
Nov 07, 2017 - 02:10
Johnson's comments provoked outrage among British politicians and commentators, some of whom called for the minister to be sacked. She said: "We would urge Mr Johnson to visit Ms Zaghari-Ratcliffe in prison as soon as it can be arranged".

isis-killer-beheading-video-story-top Paradise Papers: Apple's secret tax bolthole revealed
Nov 07, 2017 - 02:08
The Paradise Papers is the name for a huge leak of financial documents that is throwing light on the world of offshore finance. At the time a spokesman for the firm said: " Apple follows the law and pays all of the taxes we owe wherever we operate".

isis-killer-beheading-video-story-top Michael Emenalo quits Chelsea in major blow to Roman Abramovich
Nov 07, 2017 - 01:39
Although Emenalo's relationship with Conte was not hard , this is a club with power struggles going on off the pitch. Former Nigeria defender Michael Emenalo has resigned from his position as technical director at Chelsea.

isis-killer-beheading-video-story-top Patton Oswalt Marries Meredith Salenger
Nov 07, 2017 - 01:38
What do you think of Patton Oswalt's marriage? After three months of the digital banter, they finally met in person in mid-May. Oswalt and Salenger went public with their relationship in June when they attended the Los Angeles premiere of Baby Driver.

isis-killer-beheading-video-story-top PlayStation Trophies Can Now Earn You Discounts
Nov 07, 2017 - 01:07
If you're still interested in the program, and you probably should be since it's free, just head here to get signed up. Sony is making trophy hunting a lot more worthwhile today by assigning an actual monetary value to the ones you earn.

isis-killer-beheading-video-story-top Strangers Arrested For Oral Sex On Delta Flight
Nov 07, 2017 - 00:48
According to police, the man and woman were on a plane headed from Los Angeles to Detroit Sunday when they were caught. Apparently, the passengers were complete strangers before the incident, officials said .

isis-killer-beheading-video-story-top Watch A Koenigsegg Agera Hit 284mph In Stunning Onboard Footage
Nov 07, 2017 - 00:46
Unveiled at SEMA earlier this week, the Hennessey Venom F5 was teased with a 300mph road-sign. Recall hypercar Koenigsegg has a 5.0-liter V8 twin-turbo power 1360 HP (1 MW).

isis-killer-beheading-video-story-top Dermot Gallagher: 'Raheem Sterling didn't dive for Manchester City penalty'
Nov 07, 2017 - 00:46
City manager Pep Guardiola had no time for Wenger's complaints. "I think it was an intense game of quality from both sides". Wenger said: "*"*I would say overall the referee made the decision today, with the soft penalty and the offside goal.

isis-killer-beheading-video-story-top Turnbull Knocks Back New Zealand's Refugee Offer
Nov 07, 2017 - 00:46
The rights of Kiwis living in Australia were also expected to come up in the discussions. Opposition Leader Bill Shorten believes the federal government should accept the offer.

isis-killer-beheading-video-story-top Will Tropical Storm Rina form in the central Atlantic?
Nov 07, 2017 - 00:45
It will be called Tropical Storm Rina if it strengthens as expected. Hurricane Season in the Atlantic ends officially on November 30. TD 19 had maximum sustained winds of 35 miles per hour .