This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.

Qatar Airways announced on Monday that it has agreed to acquire a 9.61% stake (378,188,000 shares) in Cathay Pacific Airways. The acquisition is worth HK$5.16 billion (about $662 million), and gives Qatar more access to the lucrative Chinese aviation market.

“Qatar Airways is very pleased to complete its financial investment in Cathay Pacific,” said Qatar CEO Akbar Al Baker. “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.”

The purchase makes history as the first-ever investment in an East Asian carrier by a Middle Eastern airline. As reported by Bloomberg, the purchase gives Qatar access to the very valuable and concentrated Chinese market. Within a decade, China is expected to become with world’s largest aviation market, a position currently held by the United States. Qatar is now the third-largest shareholder in Hong Kong-based Cathay Pacific, behind Swire and Air China.

Following the announcement of Qatar’s purchase, Cathay’s CEO Rupert Hogg  said that he looks forwards to a “continued constructive relationship” with Qatar. The two are both members of the Oneworld alliance and are known for their premium product offerings, such as Qatar’s new Qsuites business class and Cathay Pacific’s first class. Cathay is also facing financial trouble, after posting a loss of $260 million in the first half of 2017.

Investing in other airlines isn’t new for Qatar. The carrier already holds a 20% investment in International Airlines Group, a 10% investment in LATAM Airlines Group and a 49% investment in Meridiana. Earlier this year, Qatar announced plans to take a major stake in American Airlines, however, those plans were later scrapped because the investment no longer met the objectives of Qatar.

Featured image by Philippe Lopez / Getty Images.

Know before you go.

News and deals straight to your inbox every day.

2018 TPG Award Winner: Mid-Tier Card of the Year
Chase Sapphire Preferred® Card

NEW INCREASED OFFER: 60,000 Points

TPG'S BONUS VALUATION: $1,200

CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

Apply Now
More Things to Know
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • Chase Sapphire Preferred named "Best Credit Card for Flexible Travel Redemption" - Kiplinger's Personal Finance, June 2018
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • No foreign transaction fees
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
  • No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards
Intro APR on Purchases
N/A
Regular APR
18.24% - 25.24% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent/Good

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.