Airlink, a South African carrier, will receive a 25% equity investment from Qatar Airways

In an effort to increase service and passenger numbers throughout Africa, Qatar Airways and regional carrier Airlink, both based in South Africa, announced on Tuesday that they would be purchasing a quarter of Airlink.

Speaking to reporters in Doha with Airlink CEO Rodger Foster, Badr Mohammed Al Meer, CEO of Qatar Airways, said the investment will improve the airline’s ability to serve customers in smaller African locations.

Foster stated that it will enable Airlink, a privately held company, to grow in Africa and potentially fly bigger planes on one or two routes. He said it will not spread outside of Africa.

The investment was formally agreed upon on Tuesday, but the executives did not reveal its worth. Al Meer of Qatar Airways stated that regulatory clearance would be necessary.

Foster stated that Qatar Airways will have the highest foreign ownership share permitted by South African regulations for airlines, with a 25% equity position in Airlink.

According to Foster, the Webb family from South Africa, institutional investors Coronation Global and Sishen Iron Ore Company Community Development Trust, and his family presently hold Airlink.

Foster told Reuters that Qatar Airways will receive two seats on Airlink’s 14-member board in addition to 25% of the voting rights of shareholders.

The International Airlines Group, which owns British Airways, Cathay Pacific Airways, China Southern Airlines, and Latam Airlines are all owned by state-owned Qatar Airways.

In 2019, it reached an agreement with Rwanda’s government to purchase a majority share in a new international airport, and it has also been in negotiations to acquire a minority investment in RwandAir.

RwandAir and Airlink share multiple routes, with Airlink flying to more than 45 destinations in 15 African countries.
“We start rationalizing the duplicated activity as Qatar Airways gets more involved in RwandAir,” Foster said, noting that although talks have not yet begun, this might entail an interline or code share arrangement with the airline.

Airlink and Qatar Airways already have a code share arrangement in place that permits the two airlines to offer tickets on flights run by one another.

Foster stated that the African airline will stick to its comparable arrangement with Emirates, the government-owned airline that competes with Qatar Airways.