Qatar Airways Dumps Cathay Pacific: So What?

Alright, let's get this straight. Qatar Airways is dumping its 9.6% stake in Cathay Pacific for $896 million. Eight years of holding those shares, and now they bail? CEO Badr Mohammed Al-Meer says it's all part of a "proactive strategy to optimize investments." Translation: they need the cash, or they see something sinking fast. Or both.

The Price of Admission (and Exit)

They bought that 9.6% chunk back in 2017 for $662 million. So, on the surface, they're walking away with a $234 million profit. Not bad, right? Except, wait a minute... We're talking about Qatar Airways here. They don't exactly play small ball. They own chunks of IAG (British Airways, Iberia, etc.), Virgin Australia, and are sniffing around RwandAir. So why cash out on Cathay Pacific? According to Qatar Airways bows out of Cathay Pacific after eight years - CNN, this move comes after eight years of holding shares.

Maybe it's just good housekeeping. "Optimize investments," blah blah blah. Or maybe they're rearranging the deck chairs on the Titanic. The airline industry is a bloodbath, after all.

And Cathay Pacific buying back the shares? Patrick Healy, Cathay's chairman, is all smiles, saying it shows "confidence in its future." Of course, he does. What else is he gonna say? "We're doomed, sell everything!" Give me a break.

First Class Problems, Literally

And then there's this A380 nonsense on the Singapore-Doha route. Okay, cool, First Class is coming to that route for a limited time. But here's the kicker: that means bye-bye to the Qsuite on flight QR947/948. People specifically book that flight for those sweet, sweet sliding doors and double beds. Now they get...the Collins Diamond seat? Seriously?

The onboard bar and social space on the A380? That's supposed to make up for it? Like a fancy cocktail can ease the pain of knowing you're not getting the Qsuite experience you paid for. It's like offering a consolation prize of slightly better peanuts on a delayed flight.

Singapore has been one of Qatar Airways' few destinations served exclusively with Qsuite Business Class. And they're messing with it. Why? Qatar Airways Deploying A380 with First Class to Nation with Strongest Passport in the World - Aviation A2Z reports that this A380 deployment will bring First Class to the Singapore route.

Offcourse, flights QR945/943/944/942 on the SIN-DOH route will continue to feature Qsuite. So I guess you need to book those instead, if you are after Qsuite.

The Bigger Picture: Are They Spreading Too Thin?

Qatar Airways is spreading itself thinner than cheap butter on burnt toast. Stakes in China Southern, IAG, Virgin Australia, RwandAir... it's like they're playing airline Monopoly, trying to buy up every property on the board. But are they actually managing all these investments effectively? Or are they just throwing money around to look important?

Maybe this Cathay Pacific move is a sign they're finally realizing they can't own everything. That they need to consolidate, focus. Or maybe it's just a prelude to something bigger. A fire sale? A merger? Who knows?

Then again, maybe I'm the crazy one here. Maybe this is all part of some grand, brilliant master plan that I'm too cynical to see. Nah.

Smoke and Mirrors, People

So, what's the real story? Qatar Airways needed some quick cash, or they see Cathay Pacific going down the tubes. And they're hoping we're all too stupid to notice the downgrade on the Singapore route.