The Middle Eastern airline purchased shares amounting to about 9.6 percent ownership in Hong Kong-based Cathay Pacific Airways.
This move signifies Qatarâ€™s confidence in Cathay Pacificâ€™s ability to bounce back from its recent financial struggles, predicted to be the result of increasing competition from Middle Eastern airlines, as well as mainland Chinese and low-cost carriers.
In 2016, the Hong Kong airline lost US$73.6 million in its annual revenue, followed by a US$262 million loss in the first half of the year. As such, the airline laid off hundreds of workers in a bid to rebound from its losses.
To better compete with the Gulf carriers, Cathay Pacific has been ramping up its partnerships. Most notably, it added codeshare and frequent-flyer collaborations with Star Alliance member Lufthansa in April this year.
Speaking of the sale, Qatar Airways CEO Akbar Al Baker said: â€śCathay 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.â€ť
In another statement, Cathay Pacificâ€™s CEO, Rupert Hogg, said, â€śWe already work together closely as fellow members of the Oneworld alliance and we look forward to a continued constructive relationship.â€ť