Qatar Airways will purchase 9.61% of Hong Kong airline
Cathay Pacific.
The $662 million stock purchase is expected to be finalized
Monday, Qatar said.
"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," Qatar CEO Akbar Al Baker said in a
prepared statement.
Qatar's investment in the Asia-Pacific carrier comes three
months after it abandoned an effort to purchase up to 10% of American Airlines.
American -- which is embroiled in a longstanding dispute over state subsidies to
Qatar, Emirates and Etihad -- had expressed sharp opposition to a Qatar
investment in American.
With its stake in Cathay, Qatar will own significant stakes
in four world airline groups. Qatar owns slightly more than 20% of IAG, the
parent of British Airways, Iberia, Aer Lingus, Vueling and Level; 10% of South
America's LATAM Airlines Group; and 49% of Italian carrier Meridiana.
Pressed by competition from low-cost carriers and from
growing Chinese airlines, Cathay Pacific lost $262 million during the first six
months of this year. Qatar, meanwhile, continues to suffer from a diplomatic
dispute with Saudi Arabia, the United Arab Emirates, Egypt and Bahrain that has
forced it to cease flights to those countries and to fly around those nations'
air space.
Qatar is purchasing its 378,000 Cathay shares from Hong
Kong-based Kingboard Chemicals Holdings Limited.