IAG deepens ties with Qatar Airways

Airlines ink deal to give them a competitive edge
International Airlines Group has deepened its relationship with Qatar Airways through a joint venture with its subsidiary British Airways. The aim is to help the two carriers compete more effectively worldwide.
The move highlights how IAG is pioneering efforts to cooperate with the fast-expanding Gulf carriers, despite opposition from other European and US legacy airlines.
Qatar Airways upped its stake in IAG to 20% in July, exploiting a fall in the group’s shares after the Brexit vote.
BA and Qatar Airways will now partner on revenue sharing, fares and flight schedules from October on services between their London and Doha hubs.
There will also be a codeshare arrangement, where they sell tickets on each other’s direct flights between the UK and Doha, and on connecting flights to destinations in Britain, Europe, the Middle East, Asia and Africa.
The deal will help BA expand its reach in Asia via Doha, especially to Australia. “The core value is the flexibility to jointly plan and price capacity via Qatar’s Doha hub,” explains aviation consultant John Strickland.
Financial Times


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