Qatar Airways To Finalise RwandAir Purchase

According to the Financial Times, Qatar Airways is nearing the formal acquisition of a stake in RwandAir following much discussion and long-term planning.

The two airlines are looking to finalise the stake purchase as early as next month, which is July. Qatar Airways sees excellent potential in the market, which RwandAir calls home and in nearby regions. Thus, investment has been a long time in the making.

Currently at an undisclosed figure, once finalised, the deal would see the Doha-based airline acquire up to 49% of Rwanda’s flag carrier, thus quite a significant stake and, therefore, control.

Furthermore, the Qatar Airways tie-up has been significantly delayed due to the effects of the global pandemic and many other external factors. However, now the pair is inching closer to completing the paperwork.

The tie-up with RwandAir would go along with Qatar Airways’ previously announced investment in the new Bugesera International Airport, which will open in the latter stages of the 2020s. This major airport will look to better compete with other major airlines in the sector and airport, namely Ethiopian Airlines and Addis Ababa.

RwandAir has long been speculated at joining the oneworld alliance, of course, where Qatar Airways calls home. The joining of the alliance would allow Rwanda-based airlines to obtain greater connectivity with Qatar Airways’ partner airlines.

Talks of the company joining oneworld stretch many years back, and the pathway to this becoming formal remains unclear. RwandAir is not the only airline that has been in the pipeline or at least would like to join oneworld. A few days ago, STARLUX confirmed its interest in becoming the latest member.

Qatar Airways and RwandAir coming together will allow greater connectivity for Qatar and oneworld, enabling them to have greater access to the African market with the backing of a major airline soon.

Similarly to STARLUX and analysts’ opinions, oneworld needs to be calculated in its moves by adding airlines to its portfolio. Ultimately, each company it adds needs something worth the airline’s while.