Saturday, 18 November, 2017

Cathay shares rally after Qatar Airways takes 9.6% stake

Two for the price of one fares for a limited time Two for the price of one fares for a limited time
Juana Turner | 07 November, 2017, 00:19

Qatar Airways said on November 6 it had agreed to buy 9.6 percent of Hong Kong rival Cathay Pacific Airways.

It's the first known investment by a Middle Eastern airline into an east Asian carrier.

The state-owned Gulf carrier has become the third-largest shareholder of Cathay Pacific with $662 million share purchase.

In May, Cathay announced plans to cut around 600 jobs to "improve the speed and quality of decision-making and putting a greater focus on its customers" as a response to increased competition from Asia's low-priced carrier market. Cathay Pacific also counts Air China (29.99 percent) and Swire Pacific Ltd. (45 percent) as its two other strategic shareholders, with Qatar Airways now making up the trio.

Cathay Pacific chief executive Rupert Hogg said as members of the Oneworld alliance, "we look forward to a continued constructive relationship".

Tremors were felt in early morning trading as Cathay's share slipped to HK$12.56 (US$1.6) - a drop of -4.6% - after opening at HK$13.14 (US$1.68), but climbed to trade at approximately HK$13.00 (US$1.66) in the afternoon session (correct at the time of writing). It holds 20 per cent in International Airlines Group (the parent company of Aer Lingus, British Airways, Iberia and Vueling), 10 per cent of LATAM Airlines Group and 49 per cent in Italian carrier Meridiana.

The troubled Hong Kong carrier in August reported a massive net loss of $262 million (HK$2.05 billion) for the first half of 2017 as it struggled with intense competition from rivals.

Doha-based Qatar Airways has taken a 6.9% stake in Cathay Pacific.

Cathay flew between Hong Kong and Qatar Airways' Doha hub as part of a codeshare arrangement between 2014 and 2016.

Recommended

Fifty Shades Freed: Can the new trailer reclaim the record? Fifty Shades Freed: Can the new trailer reclaim the record? Ana is threatened by the contractor Christian hires to build their house, Gia Matteo, played by Arielle Kebbel . The woman replies with a patronizing "Ana", but Anastasia's not backing down, quipping, " You may call me Mrs".

Blizzard Reveals Hearthstone: Kobolds & Catacombs with New Trailer Blizzard Reveals Hearthstone: Kobolds & Catacombs with New Trailer Each year, there's new Hearthstone expansions that increase the amount of cards available in the online collectible card game. Introducing new cards gives Hearthstone players new things to play with and helps keep the meta from going too stale.

Mueller Intensifying Pressure in Flynn Investigation, Has Enough Evidence to Charge Mueller Intensifying Pressure in Flynn Investigation, Has Enough Evidence to Charge Lawyers for Mr Flynn and his son, who worked with his father, declined to comment to NBC News. Mr Flynn has undertaken paid work as a lobbyist on behalf of the Turkish government.