Off the wire
• Roundup: British new PM Theresa May lands big government jobs  • AU urges policy makers to expedite continental trade deal  • Rwanda will not arrest President Bashir, says foreign minister  • U.S. dollar declines against sterling on BOE decision  • Oil prices rise on weaker dollar  • UN humanitarian partners preparing for more aid to Nigeria: spokesman  • UN agency delivers humanitarian aid to thousands of displaced in South Sudan  • Polish V4 presidency to focus on innovations, start-ups  • U.S. Congress passes mandatory labeling bill for genetically engineered foods  • UN agencies relocate non-essential staff from South Sudan  
You are here: 　 Home

Qatar Airways to purchase 49% stake in Italian carrier

Xinhua, July 15, 2016 Adjust font size:

Qatar Airways announced on Thursday it will buy a 49 percent stake in Italy's second largest carrier Meridiana, bringing months of negotiations with the troubled Italian airline to a close.

The Gulf carrier said in a statement on its website that it has signed a contribution and shareholders agreement with Alisarda, the parent company of Meridiana.

The agreement provides for Qatar Airways to purchase 49 percent of Meridiana fly's shares, subject to the fulfillment of certain conditions, before the closing which is planned for early October, said the statement, without disclosing further details.

Qatar Airways Group Chief Executive Akbar Al Baker said "this agreement sets the path to lead our work towards a strong resolution that benefits both the staff and passengers who travel with Meridiana fly."

"Qatar Airways continues to expand its business opportunities around the world, increasing travel options for our passengers while also enhancing our investment portfolio," he added.

Meridiana has been coping with financial losses for years. Talks to rescue the struggling airline from collapse have been going ahead for months with Qatar's flagship airline signing a preliminary agreement back in February.

The negotiations stalled in June over the conditions of the Italian labor unions, but Italy's Transport Minister Graziano Delrio worked hard to bring it back to the table.

The announcement follows a successful week at the Farnborough International Airshow, where Qatar Airways also disclosed that it is to acquire up to 10 percent of Latin America's largest airline LATAM Airline Group's total shares, according to the statement.

Meridiana has an extensive national and European network, which connects the main Italian airports with Sardinia and provides connectivity with hubs in Europe as well as in the U.S. and Africa. Its fleet consists of Boeing 737s, 767s and MD-82s.

On the other hand, Qatar Airways has a modern fleet of 188 aircraft flying to more than 150 key business and leisure destinations across six continents.

It owns 15.67 percent stake of IAG, British Airway's parent company, and is also considering a stake in Morocco's Royal Air Maroc, as it continues to expand its global network by investing in other airlines.

On July 11, the company announced a 445 million dollars profit for the 2016 fiscal year ending March 31, with 9.6 billion dollars of revenue. Endit