Southern Africa: Qatar Airways Set for Major Southern Africa Airline Acquisition

Qatar Airways is poised to unveil its acquisition of a prominent airline in Southern Africa, a major move poised to significantly influence the aviation landscape within the region.

The carrier from the Middle East has disclosed that it is in the final stages of securing a stake in an undisclosed airline, refraining from specifying the entity in question.

This cageyness has spurred speculation that Qatar Airways may be engaged in negotiations to procure a share in South African Airways, particularly following the withdrawal of Takatso, an investment firm previously slated to acquire a majority stake in the airline.

"We are at the final stage of an equity investment in an airline in the southern part of Africa. This airline will help us complement the operation of Kigali as a hub," Qatar Airways CEO Badr Mohammed Al Meer said in a recent aviation forum in Doha.

Initially, the Takatso Aviation consortium, backed by government endorsement as the preferred partner, had secured approval to acquire a 51 percent stake in SAA.

However, the abrupt withdrawal in April by Takatso disrupted this trajectory, with the South African Government attributing the setback to a revised transaction structure.

This impending collaboration marks the second instance of Qatar Airways pursuing a stake in an African airline.

Presently, the carrier is in the process of acquiring a 49 percent share in RwandAir. Qatar Airways aims to establish Kigali as its African hub, facilitating operations under fifth freedom rights to various destinations without necessitating a return to its Doha base.

The airline has made substantial investments in Bugesera Airport, Rwanda's second aerodrome, where it owns a 60 percent stake.

Qatar's growing interest in Africa's aviation sector is poised to unsettle established carriers such as Kenya Airways and Ethiopian Airlines.

Over the years, Middle Eastern carriers have faced criticism for offering low fares, underpinned by extensive government subsidies, thereby enjoying a competitive advantage over other market players.

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