QATAR AIRWAYS LIFTS ITS STAKE IN BA PARENT IAG

QATAR Airways lifted its stake in British Airways parent IAG, tightening its grip on the European group after expansion in the Gulf was thwarted by a Saudi-led embargo. The increase to 25.1 percent comes less than a month after IAG removed a cap on non-EU investment imposed as part of Brexit preparations. The move gives Qatar greater leverage as IAG chief executive Willie Walsh prepares to exit the post next month, and BA grapples with fallout from the EU split. Walsh and Al Baker have had one of the closest dynamics in the airline industry, and the increased holding will hand the Middle East carrier additional rights as that personal partnership comes to an end. “Our investment to date has been highly successful and the announced increase in our shareholding is evidence of our continued support of IAG and its strategy,” Qatar Airways chief executive Akbar Al Baker said in the release. IAG shares traded 1.4 percent higher as of 8.32am in London. The stock has gained 2.6 percent this year, valuing the company at £12.7 billion (R246bn). Qatar Airways is closely held. While headquartered and listed in London, IAG is domiciled in Spain and has to remain compliant with EU rules to retain flying rights. Foreign companies aren’t able to take full control of European airlines as a condition of their air operating licences. Voting rights of more than 25 percent in a UK firm allow a shareholder to block special resolutions such as the adoption of new articles of association, or changing a company’s name, according to law firm Stephens Scown‘s website. Qatar Airways first bought IAG stock in 2015, although the company has always insisted the interest is financial and not an attempt to gain control, and has so far declined to seek a seat on the board. I Bloomberg