Qatar Airways is ending its investment in Hong Kong flag carrier Cathay Pacific after eight years.
The two airlines announced last week that Cathay will buy back Qatar Airways’ roughly 643 million shares for a total of about 6.9 billion HKD, equal to $896 million. The shares amount to 9.5% of the company.
Cathay’s independent shareholders must sign off on the deal before it can take effect.
“The buy-back reflects our strong confidence in the future of the Cathay Group and underscores our commitment to the development of the Hong Kong international aviation hub,” Cathay Group Chair Patrick Healy said in a statement. “Together with our investment of well over HK$100 billion into our fleet, cabin and lounge products, and digital leadership, we are firmly focused on sustainably growing our business to strengthen Hong Kong’s status as a world-class aviation hub and contribute to the prosperity of the wider Greater Bay Area.”
Qatar Airways acquired its stake in Cathay Pacific in 2017.
The airline did not go into detail about the sell-off, saying only that it is in line with its broader investment strategy.
“Following a period of record profitability and strong performance, this decision is part of a proactive strategy to optimize our investments and position the group for long-term growth,” Qatar Airways Group CEO Badr Mohammed Al-Meer said in a statement.
Al-Meer noted that the two carriers will continue to collaborate through the oneworld airline alliance.
“Hong Kong remains an important market to Qatar Airways, and we remain fully committed to serving it through our flights and codeshare agreements, offering travelers a seamless and world-class experience that reflects the highest standards of quality, service, and innovation,” he added.
Qatar Airways owns stakes in several large airlines and airline groups, including International Airlines Group, LATAM, and Virgin Australia.
