Qantas share price sinks 5% on huge Qatar Airways-Virgin Australia deal
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The Qantas Airways Limited (ASX: QAN) share price is having its wings clipped on Tuesday.
In morning trade, the airline operator’s shares dropped as much as 5.5% to $7.00.
The Flying Kangaroo’s shares have recovered a touch since then but remain down 3.5% at the time of writing.
Why is the Qantas share price under pressure?
Today’s decline appears to have been triggered by a big announcement from its arch-rival, Virgin Australia.
This morning, Virgin Australia revealed that Qatar Airways Group intends to acquire a minority 25% equity stake in the airline from Bain Capital. This is subject to Foreign Investment Review Board approval.
Qatar Airways is one of the world’s largest airlines. Earlier this year was…
