One certainly wonders what’s motivating this sale, because this doesn’t otherwise seem in line with Qatar Airways’ strategy…
Continue reading: Surprise: Qatar Airways Selling 10% Cathay Pacific Stake, But Why?
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So that leaves them with stakes in LATAM, JSX, IAG and pending stakes in Rwandair and Airlink?
Most likely the CCP wants control back of its assets. Ultimately, QR/CX have been much less connected in recent years. CX ended their DOH flight in 2016.
You'll probably get all the people up in arms saying "CX is leaving Oneworld for Star Alliance bc of Air China" now.
I don't think it's too clear how to interpet this situation, this could really mean nothing.
I believe the main reason is that investing in CX doesn’t offer any strategic value for Qatar. In contrast, their investment in IAG makes sense, as it allows them to route passengers to Asia through Doha. CX’s business model essentially mirrors Qatar’s and, in many ways, directly competes with it, whereas IAG has effectively withdrawn from the Asian market.
There's a certain widget-tailed North American airline, who doesn't have a strategic partner in southeast(ern) Asia, who really loves purchasing stakes in unaligned airlines, then developing them into strategic partners even if an immunized joint-venture isn't available.
That 10% might be mighty appealing to them. Just saying.
I agree with your assessment and the link below will demonstrate it. Qatar is all in to beat Saudi Arabia to become the best loyal US ally in the region. However, these wealthy gulf states do not fully understand the history of US foreign policy. Whatever Trump promises we can wipe our butts with and flush it down the toilet. He may guarantee Qatar's security while he is in power but not much longer after he is out of power.
I doubt Delta wants to invest in Donghai Airlines or Ruili Airlines.
But I'm sure Tim Dunn has good things to say about those airlines.
Yes. Especially doubtful are the stakes in LATAM and JSX, since we can't see any meaningful level of cooperation. With IAG the ties are fairly close, including sharing Avios as the FFP currency. Rwandair is a Oneworld candidate and QR would also like to bring in Airlink.
Trading a significant but not controlling share of a multibillion dollar company does usually mean selling shares at a discount compared to the stock value on the day. For example in a book building process to sell underwriters will need to discount the stock compared to the value on the day to attract and incentivize to close the deal. Premiums are heard of if bidding for a company outright, e.g. a takeover attempt or a majority stockholder buying out the minoroty stockholder(s).