Qatar Airways takes 9.99% stake in British Airways owner IAG

The airline may consider increasing its stake over time

Qatar Airways has bought a 9.99 per cent stake in International Consolidated Airlines Group (IAG) worth around £1.15 billion ($1.7 billion), building closer ties with the owner of its partners British Airways and Iberia in the oneworld alliance.

Qatar's national airline said it would look to strengthen commercial ties with the European group, and may consider increasing its stake over time, although it was not currently intending to exceed 9.99%.

"IAG represents an excellent opportunity to further develop our Westwards strategy," said Qatar Airways Chief Executive Akbar Al Baker.

IAG Chief Executive Willie Walsh welcomed the move.