Qatar Airways buys Cathay Pacific stake for $662 million

Deal would help it gain a foothold in the world's second-biggest aviation market

Qatar Airways agreed to acquire a stake in Cathay Pacific Airways, a deal that would help it gain a foothold in the world’s second-biggest aviation market.The Middle Eastern carrier will buy 9.6 per cent of Cathay from Hong Kong-based Kingboard Chemical Holdings Ltd and related companies for HK$5.16 billion ($662 million), according to a filing to the city’s stock exchange Monday.

Chief Executive Officer Akbar Al Baker, confirming the deal, said the investment “further supports Qatar Airways investment strategy.” When completed, the purchase, the first ever investment by a Middle Eastern airline in an East Asian carrier, would make the Doha-based company the third-largest shareholder in Cathay. 

It would also provide access to mainland China, a country set to emerge as the world’s biggest aviation market within a decade.