Qatar wants a slice of China's huge aviation market

Qatar Airways is buying into the one market no major airline can ignore: mainland China.The state-own...

Posted: Jan 2, 2019 3:11 PM
Updated: Jan 2, 2019 3:11 PM

Qatar Airways is buying into the one market no major airline can ignore: mainland China.

The state-owned Gulf airline said Wednesday that it has acquired 5% of China Southern Airlines (ZNH), the country's largest carrier. US rivals American Airlines (AAL) and Delta (DAL) already have stakes in China Southern and China Eastern (CEA), respectively.

Asia

Aviation and aerospace industry

Business and industry sectors

Business, economy and trade

China

Continents and regions

East Asia

Middle East

Middle East and North Africa

Qatar

Air transportation

Airlines

Transportation and warehousing

Companies

Qatar Airways

China Southern Airlines

Akbar Al Baker

Business figures

Qatar Airways said it acquired its stake by purchasing China Southern shares on the Hong Kong and Shanghai stock markets. It's the first major investment in mainland China by Qatar Airways.

Akbar Al Baker, the CEO of Qatar Airways, said the investment offered "massive potential."

"China Southern Airlines is one of the most prestigious airlines in the Chinese domestic market and an important market player in the world," Al Baker said in a statement.

China takes off

Air travel is growing rapidly in China. The International Air Transport Association expects the country to overtake the United States as the world's largest aviation market by 2023.

The surge in air travel is fueled in large part by middle class Chinese who are spending billions on domestic and foreign vacations.

Boeing (BA) expects Chinese airlines to purchase 7,690 new airplanes over the next 20 years, at a combined value of $1.2 trillion. Boeing estimates that 75% of the new planes will be single aisle aircraft.

Qatar's strategy

Qatar Airways has invested in a number of international airlines in recent years.

It owns 20% of International Airlines Group (ICAGY), the parent company of British Airways, as well as 10% stakes in Hong Kong carrier Cathay Pacific (CPCAY) and LATAM Airlines Group (LTM). It owns 49% of Air Italy.

The investments took on added importance after Qatar Airways was banned from some Middle East destinations following a breakdown of relations with neighbors such as Saudi Arabia and the United Arab Emirates in 2017.

Qatar Airlines operates across 1,000 airports in more than 150 countries, with 14,250 daily departures. China Southern did not respond to a request for comment on Wednesday.

Huntsville
Broken Clouds
51° wxIcon
Hi: 56° Lo: 40°
Feels Like: 51°
Florence
Clear
54° wxIcon
Hi: 55° Lo: 40°
Feels Like: 54°
Fayetteville
Clear
48° wxIcon
Hi: 54° Lo: 37°
Feels Like: 48°
Decatur
Clear
51° wxIcon
Hi: 55° Lo: 38°
Feels Like: 51°
Scottsboro
Clear
54° wxIcon
Hi: 61° Lo: 41°
Feels Like: 54°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Cases: 242874

Reported Deaths: 3572
CountyCasesDeaths
Jefferson31944500
Mobile19687361
Madison13065148
Tuscaloosa12983154
Montgomery12286236
Shelby1020377
Baldwin860398
Lee773566
Morgan653850
Calhoun6240119
Marshall621355
Etowah621066
Houston523038
DeKalb481336
Cullman435442
Limestone420645
St. Clair415855
Elmore404564
Lauderdale400454
Walker3634111
Talladega349054
Jackson313423
Colbert309342
Blount288840
Autauga271642
Franklin251033
Coffee242615
Dale231854
Dallas225932
Chilton221938
Russell22143
Covington218534
Escambia197931
Chambers176550
Tallapoosa175791
Pike158314
Clarke158019
Marion137936
Winston132323
Lawrence127336
Pickens122318
Geneva12138
Marengo121024
Bibb117317
Barbour117110
Butler115341
Randolph102021
Cherokee101524
Hale96131
Clay91124
Washington90919
Fayette89816
Henry8526
Lowndes79529
Monroe78711
Cleburne77114
Macon73122
Crenshaw71130
Bullock69419
Conecuh68414
Perry6846
Lamar6718
Wilcox63218
Sumter57722
Greene42418
Choctaw42113
Coosa3414
Out of AL00
Unassigned00

Tennessee Coronavirus Cases

Cases: 356716

Reported Deaths: 4526
CountyCasesDeaths
Shelby47088658
Davidson42057419
Knox18467149
Rutherford17439160
Hamilton16555152
Williamson1116779
Sumner9573136
Wilson731678
Out of TN721051
Montgomery649683
Sullivan630096
Washington5844106
Maury578367
Putnam578282
Blount540660
Madison5275110
Bradley508435
Sevier476831
Unassigned449222
Robertson371052
Tipton357738
Hamblen340860
Dyer316051
Gibson315064
Greene300672
Dickson284833
Anderson283328
Coffee277641
Bedford270130
Carter266055
Lawrence263934
Obion260449
Cumberland248536
McMinn244555
Roane230929
Warren229419
Loudon224519
Hardeman223237
Jefferson222732
Fayette219138
Weakley212636
Monroe207444
Franklin204434
Lauderdale202523
Trousdale190212
Hawkins189834
Wayne189110
Henderson181533
Macon179228
Hardin174825
Marshall171520
White170918
Carroll169234
Rhea162931
Haywood160830
Cocke159530
Lincoln157914
Cheatham155317
Overton152935
Campbell152723
Henry149317
Giles143949
Johnson141321
Smith140919
McNairy138733
Fentress118920
Lake11656
Hickman116219
Bledsoe11595
Crockett113326
DeKalb111322
Marion107719
Scott10507
Chester101120
Grainger95416
Decatur93713
Unicoi83626
Claiborne8029
Benton78714
Grundy76914
Lewis74714
Cannon7293
Morgan7096
Union7065
Humphreys6948
Jackson67510
Polk65015
Houston58620
Stewart58415
Clay54018
Sequatchie5215
Meigs48313
Perry47721
Moore3893
Pickett38413
Van Buren3482
Hancock1563

Community Events