News

Qatar Airways to buy 10% stake in Latam

12 de julho de 2016

The carriers reached an agreement that also provides for a capital increase of USD 613 million for the South American airline.

São Paulo – Latam, the airline born of the merger of Brazil’s TAM and Chile’s LAN, and Qatar Airways announced this Tuesday (12) a deal for the purchase of as much as 10% of the former by the latter, via a capital increase for the South American carrier.

The airlines said in a joint statement that they have entered into a subscription agreement that provides for a capital increase of USD 613 million through issuance of new shares at a price of USD 10 each. The deal is now pending approval at a shareholders meeting by September 2 at the latest.

The agreement was announced at the Farnborough International Air Show this week in the United Kingdom by CEOs Akbar Al Baker, of Qatar Airways, and Enrique Cueto, of Latam.

Both carriers are members of the Oneworld international alliance. “This investment provides potential opportunities for Qatar Airways’ global network,” the statement quoted Baker as saying. “In addition to strengthening our financial position, it will allow us to explore new opportunities for connectivity with Asia and the Middle East, as well as other potential areas of cooperation,” Cueto added.

The deal comes as yet another step forward for Arab carriers in the West. Abu Dhabi’s Etihad Airways recently acquired a 49% stake in Alitalia.

Qatar Airways flies to over 150 destinations worldwide, including São Paulo, Brazil, and Buenos Aires, Argentina, which are served by daily flights. The Latam group flies to 138 locations in 25 countries.

*Translated by Gabriel Pomerancblum