At a time when the world was closely watching the approval of deal between British Airways and Aer Lingus, tables seem to have been turned over on IAG, the parent holding company of the British Airways. In a major aviation news, Qatar Airways has bought a 10% stake in IAG. This deal, which is worth around $1.7 billion, is expected to further deepen the relations between the two companies.

While the IAG would benefit from the extensive network of Qatar in Middle East, India, Southeast Asia, Qatar will benefit by way of gaining access to Madrid and London hubs of IAG. These hubs are used extensively by carriers for flying transatlantic. Prior to buying this stake, there have been previous partnerships between the two carriers as well. Both of them are members of oneworld alliance of airlines and also have codeshare agreement.

It is to be noted that the laws governing European civil aviation do not permit non-European airlines to buy majority stake. This has to lie with the European shareholders only. With Qatar becoming the largest shareholder in the IAG with this buy, IAG can rest assured of long term funding commitment in case there is a need for it in future.

Both the parties have hailed the development as a win-win situation.