Qatar Airways is in discussion with RwandAir to purchase a 49 percent stake in Rwanda’s national carrier, according to Qatar Airways’ chief executive officer Akbar al-Baker.
No details of the potential deal, such as how much the stake would cost, were revealed.
The news of a potential deal has been seen as mutually beneficial by industry analysts who say it will support Qatar Airways’ expansion into Africa as an alternative and give the Gulf carrier new life.
The deal could also possibly allow Qatar Airways to avoid a blockade from Bahraini, Emirati and Saudi airspace. The blockade, imposed in 2017 following a political dispute, has forced Qatar Airways to fly longer routes.
With the Rwandair deal, passengers from Africa could be flown over the blocked airspace to its hub in Doha without the threat of restrictions.
RwandAir, on the other hand, could benefit from Qatar Airways handling maintenance and other technical aspects of its operations.
Despite being a loss-making entity, RwandAir has seen an expansion in recent years due to funds, mainly sourced through external loans, pumped in by the government.
Rwandan President Paul Kagame has previously said that the government was open to privatizing RwandAir at the right time and if it made business sense.
This could be the second major deal agreed upon by Qatar and Rwanda in the space of a few months.
In December, the Rwanda Development Board said Qatar Airways had agreed to take a 60% stake in the new $1.3 billion Bugesera International Airport in the Rwandan capital Kigali.
