Aviation experts point to Africa showing potential as a key growth market for the aviation industry, with the Qatar Airways Group having announced its acquisition of a 25% stake in Southern African regional airline, Airlink.
This deal is considered one of the biggest developments in the commercial aviation sector of the Southern African Development Community in recent years.
According to the group, this strategic investment is part of Qatar Airways’ ongoing effort to enhance its operations across Africa.
Airlink services more than 45 destinations across 15 African countries, and is said to benefit from the “expanded code-sharing partnership” with the Middle-Eastern airline.
A statement by Qatar Airways further noted that the partnership will reinforce its position as a key player in the continent’s economic development.
“Our investment in Airlink further demonstrates how integral we see Africa being to our business’ future. This partnership not only demonstrates our confidence in Airlink, as a company that is resilient, agile, financially robust, and governed on sound principles, but also in Africa as a whole, showing huge potential that I am delighted we are able to help start realising,” said Qatar Airways’ Group Chief Executive Officer, Engr. Badr Mohammed Al-Meer.
Airlink’s Chief Executive, Rodger Foster, expressed optimism about the deal, viewing it as a significant endorsement of the airline’s strength and potential. Foster says that having Qatar Airways as a part-owner is a strong vote of confidence in the airline. He says it shows that they believe in the potential of the markets it currently serve, and those they plan to expand into.
“This transaction will unlock growth by providing efficiencies of scale, increasing our capacity, and expanding our marketing reach.”
Editor of SA Flyer magazine and an expert in African aviation, Guy Leitch, noted that the investment in Airlink reflects a broader trend among Middle Eastern airlines to expand their presence in Africa.
Leitch says an investment of this nature had been on the cards for some time, but says he did not think that having Airlink as an investee was likely.
“There’s now a fresh scramble for Africa going on, particularly amongst the Middle Eastern airlines, which are all looking to grow their footprint… Africa is projected to be one of the fastest-growing airline economies in the world.”
While immediate changes for passengers may be minimal, the long-term implications for Airlink could be significant. Leitch pointed out that the partnership could eventually lead to Airlink acquiring larger aircraft, and potentially positioning the airline to compete more effectively with other carriers in the region like Fly Safair, Lift and even SAA.
“So the next step up is to an aircraft of the calibre of an Airbus C20 or a Boeing 737, which you would need, and that would give it much better economies of scale. [The partnership] does give it a much better balance sheet and the ability to raise funds to move up… and then be able to feed those routes from the South African side.”
The partnership between Qatar Airways and Airlink also includes the alignment of their loyalty programmes, Qatar Airways Privilege Club and Airlink Skybucks, allowing travellers to earn and redeem points across both airlines.
