Qatar Airways investments equal almost 10 percent of Cathay Pacific ownership

Shares of Cathay Pacific Airways dropped almost 5 percent Monday as word got out that Qatar Airways had purchased a 9.61 percent stake in the Hong Kong flag carrier.

As a result of the deal, Qatar Airways has become Cathay Pacific's third largest shareholder.

The Middle Eastern carrier said it bought nearly 3.8 million Cathay shares, which represents a 9.6 per cent stake in Hong Kong's biggest airline. Cathay closed 1.5 per cent lower, while the broader Hong Kong 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.

Qatar Airways has been trying to compensate for this lost traffic and revenue by increasingly looking at global markets to expand its reach.

Qatar Airways bought the shares from Hong Kong's Kingboard Holdings, according to a stock exchange filing by the company, which makes circuit boards and invests in property.

Without having domestic flights as a way to underpin its earnings, carriers in Asia such as Singapore Airlines and Cathay has struggled against Middle East and Chinese rivals, as Cathay already has shed over 600 jobs over the last six months.

Since June, Qatar has been isolated by neighbouring countries including Saudi Arabia and the United Arab Emirates.

Cathay shares have risen by 29.4 per cent since the start of January despite the airline in August posting its worst first-half loss in 20 years.

Mr Will Horton, a Hong Kong-based senior analyst at CAPA Centre for Aviation, said that while Qatar Airways' investment in Cathay was likely to be passive, difficulties could arise if the two carriers tried to better integrate their hubs.

Qatar and Cathay Pacific have worked together previously on the Hong Kong-Doha route.

Related:

  • Michael Emenalo quits Chelsea in blow to Roman Abramovich

    Michael Emenalo quits Chelsea in blow to Roman Abramovich

    Arguably owner Roman Abramovich's most trusted lieutenant, Emenalo has often been viewed as a controversial figure at the club. The former Notts County defender joined Chelsea in October 2007 and has been technical director since July 2011.
    Netflix Cuts All Ties with Kevin Spacey

    Netflix Cuts All Ties with Kevin Spacey

    Spacey apologized to actor Anthony Rapp last week who accused Spacey of seducing him when he was only 14. Since the allegations against Spacey came to light, " House of Cards " was indefinitely suspended.
    It's time to fall back! Don't forget to change your clocks tonight

    It's time to fall back! Don't forget to change your clocks tonight

    When clocks reach 2:00 a.m. on Sunday morning, they will be turned back to 1:00 a.m., giving Montrealers an extra hour of sleep. However, fire officials also said it is a good idea to check your smoke detectors even more than the recommended twice per year.
  • Harvey Weinstein dons disguise for night out

    Harvey Weinstein dons disguise for night out

    Weinstein's representative, Sallie Hofmeister, says the 65-year-old Oscar victor denies any allegations of non-consensual sex. Allegations against Weinstein include claims that he used sex with aspiring actresses as a bargaining tool for roles.
    Samsung Galaxy Note 8 Enterprise Edition, here are the details

    Samsung Galaxy Note 8 Enterprise Edition, here are the details

    This beta test is extremely limited, with a select number of users in South Korea, the USA , and United Kingdom being allowed in. Samsung announced the Note 8 Enterprise Edition that provides a business-first device for the enterprise and SMB market.

    Singapore Airlines' unveils bedroom in the sky in Airbus A380

    In particular, Flynn says Singapore's suites have since been mimicked "by Emirates and most impressively Etihad Airways". The Economy Class seat, designed and built by RECARO, offers more space and greater comfort through an improved design.
  • Deepika Padukone and Ranveer Singh call it quits? Here's the latest

    Deepika Padukone and Ranveer Singh call it quits? Here's the latest

    Before you jump the gun, let us tell you why Sanjay Leela Bhansali and Shahid couldn't make it to Deepika's party. She said in her letter that Khilji, who was a barbarian, desired Padmavati and that is why he destroyed Chittor.
    New Overwatch Hero Moira Announced At BlizzCon 2017

    New Overwatch Hero Moira Announced At BlizzCon 2017

    Moira , the shooter's latest addition, is a support hero that can heal teammates and teleport around the map. Her ultimate looks like a combined super-beam that heals all allies caught in it, or drains all enemies.
    This Company Gives Nonsmoker Employees Extra Time Off

    This Company Gives Nonsmoker Employees Extra Time Off

    Smoking is still quite prevalent in Japan, where according to the World Health Organization , 21.7 per cent of adults smoke. But curbing tobacco use in Japan will likely be hard , as it was in the U.S.
  • Video shows Florida police officer punch woman in face at football game

    The incident happened during the University of Miami's victory over Virginia Tech at the Hard Rock stadium on Saturday night. It remains unclear what led to the woman being removed, or whether or not she was arrested.
    Donald Trump Is Blaming Jared Kushner For The Mueller Investigation

    Donald Trump Is Blaming Jared Kushner For The Mueller Investigation

    CNN reported that Kushner, President Donald Trump's son-in-law, turned over the documents to Mueller "in recent weeks". Comey's firing ultimately led Deputy Attorney General Rod Rosenstein to appoint Mueller as the special counsel.
    Broadcom may offer more than $100 billion for Qualcomm

    Broadcom may offer more than $100 billion for Qualcomm

    We'll be paying close attention in the next few days for a potential announcement, so stay tuned for additional updates. Broadcom Ltd .is exploring a bid for San Diego-based Qualcomm Inc . according to news reports .

Comments

Other news