Qatar Airways says the move is part of its strategy to invest in the strongest airlines around the world and continue enhancing operations and network connectivity.
Qatar Airways reports that it has completed an on-market purchase of certain A shares and H shares of China Southern Airlines, giving the Middle Eastern carrier an aggregate holding of approximately 5% of the total issued share capital of China Southern Airlines.
Qatar Airways says the move is part of its strategy to invest in the strongest airlines around the world and continue enhancing operations and network connectivity.
The announcement follows the Chinese carrier's decision to leave the SkyTeam alliance, as it reportedly considers joining oneworld. Oneworld member American Airlines made a $200m equity investment in China Southern in March 2017. Qatar Airways is also a member of oneworld, though recent comments by CEO Akbar Al Baker suggest that this could change.
Qatar Airways' investment strategy already includes its 20% investment in International Airlines Group, its 10% investment in LATAM Airlines Group, its 49% investment in Air Italy and, most recently, its 9.99% investment in Cathay Pacific. The investment in Cathay was announced in November 2017.
The Doha-based carrier is currently emerging from what it has called "the most challenging year in its 20-year history," in the wake of the blockage imposed by neighbouring countries in June 2017.