Gulf carrier Qatar Airways has completed a 10% stake purchase in South American airline LATAM for $608 million.
Qatar Air has completed the transaction with LATAM’s stock price rising slightly on the news.
LATAM flies to 140 destinations in 25 countries, but had been cutting capacity due to the weakening economy in Brazil.
In 2015 it recorded a loss of more than $200 million.
The airline in its present form was established in 2012 when Chile’s LAN took over TAM in Brazil.
Both Qatar Air and LATAM are members of global airline alliance oneworld.
The deal ‘represents a unique opportunity to develop a long-term relationship and explore new opportunities to connect with Asia and the Middle East,’ LATAM said.
