Airlink CEO Rodger Foster shared further details regarding the airline’s plans after entering a strategic deal with Qatar Airways.
Speaking to Aviation Journalist Mark Pilling at Aviation Africa Summit and Exhibition in Sandton on 16 September, Airlink CEO Rodger Foster revealed more information relating to the agreement.
QATAR AIRWAYS ANNOUNCEMENT CREATES SPECULATION
Earlier this year it was announced that Qatar Airways would be taking a stake in an African carrier in the Southern part of the continent.
The announcement led to speculation concerning who the Gulf-based airline was considering investing in.
It is widely known that Qatar Airways is in the process of acquiring a major stake in Rwanda’s national carrier, RwandAir.
Qatar Airways will take a 49% stake in the carrier. It has also invested huge sums of money in Kigali’s new Bugesera International Airport.
South African Airways confirmed in May that it was not entering any agreement with Qatar Airways, leaving few carriers as potential candidates.
AIRLINK ANNOUNCED AS QATAR EQUITY PARTNER
On 20 August an official announcement was made, stating that Qatar Airways had expanded its African footprint by entering a strategic investment with South Africa’s privately-owned Airlink.
On 16 September, while in conversation with Pilling, Foster said that the agreement had been a long time in the making. He said that Qatar Airways had approached Airlink over two years ago, expressing an interest in the airline.
Foster said that Qatar Airways’ equity stake in Airlink would come through as a single tranche, enabling Airlink to expand rapidly.
He said that Airlink is indeed proud of its partnership with Qatar Airways as “the deal is a super-boost for Airlink”, enabling it to expand fast.
Airlink does not require funding to continue its expansion but this would translate to a slower rate of growth.
Foster said the airline would have been “able to grow organically” without Qatar’s investment.
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CAPACITY ON TRUNK ROUTES
Foster said that Airlink currently does not have enough capacity on the trunk routes in South Africa, owing to the size of its operating aircraft.
It competes with other carriers on the Golden Triangle routes (Cape Town, Durban, Johannesburg) with smaller aircraft seating under 100 passengers, thus not allowing the Airlink to feed significant volumes of traffic to the main carriers at hubs in South Africa.
AIRLINK’S PARTNERS
Airlink does have codeshare agreements with several international carriers including British Airways, Emirates, Qatar Airways and United Airlines.
It also has interline agreements with several airlines (regional and international carriers).
These include Air Botswana, Air France, Air Mauritius, Kenya Airways, Delta Air Lines and Ethiopian Airlines amongst others.
CODESHARE AGREEMENTS
Regarding Airlink’s partnerships with other carriers, Foster said that it will not terminate its codeshare agreement with Emirates in light of the Qatar Airways deal.
He said that Airlink will continue to have codeshare agreements with both Emirates and Qatar Airways.
Foster said that Qatar Airways does not have anything to do with Airlink’s executive leadership.
“Qatar Airways has two seats on the Airlink board, meaning it has a 25% say at the AGM.” Foster said.
