A memorandum of understanding has been signed, Qatar Airways is set to buy a 25% share of Vnukovo International Airport, one of the four major airports serving Moscow. The deal is set to complete within the next few weeks. The cost of this acquisition has yet to be released.
Huge losses reported
This news comes just weeks after the airline reported large losses due to restrictions imposed in Saudi Arabia and a few other Arab countries. With loss of access to cities in Egypt, Saudi Arabia, the United Arab Emirates and Bahrain, this is a huge hit to the airline. Tamim bin Hamad Al Thani, Qatar’s Emir has recently met with Vladimir Putin during a short visit to Moscow to discuss an increase in cooperation between Russia and Qatar. This is the first time a leader has visited Moscow since President Putin began his new presidential term. This certainly shows the strength of the relationship between the two nations. With continued investment in Russia, it is an obvious and sensible attempt to counteract the adverse effects of the blockade imposed on the airline.
The latest in a line of investments
Since the blockade was put in place, Qatar Airways have been acquiring stakes in a variety of countries including Hong Kong (Cathay Pacific) and Italy (Meridiana). They need to increase their business to make up for that lost in the Gulf countries, and they seem to be heading in the right direction with these latest investments. The Qatar Investment Authority, the sovereign wealth fund of Qatar already owns a 20% stake of Heathrow Airport in the UK.
Last year, it was thought that Qatar Airways would buy a stake in American Airlines Group Inc. but they decided against the plan. However, they have stated that they are still looking for investment opportunities in the US and elsewhere.
A wise investment for Qatar
Vnukovo is the third biggest airport in Russia and it has been predicted that traffic to and from this airport is going to increase this year. It is estimated that Vnukovo airport will handle 18.5 million passengers this year alone. This does seem like a sensible investment for Qatar Airways who have been awarded the prestigious title of ‘Best Air Carrier’ four times since 2011. Additionally, they have been named ‘Best Regional Middle East / Africa Airline’ by Money Magazine this year, they also won this award in 2017.
Emily is an avid writer with a passion for the travel industry. She also loves learning and writing about nutrition and healthy living. Emily is based in the UK.
