Brazilian competition regulator Cade on Wednesday approved Qatar Airways’ purchase of a 10 percent stake in the Latam Airlines Group. The transaction involves a $613 million capital increase through the issuance of new shares at a price of $10 per share. The infusion will relieve financial pressure on the Latin American carrier, which has seen demand decline significantly during Brazil’s continuing recession.

A combination of Brazilian and Chilean flagcarriers Tam and Lan, respectively, Latam ranks South America's largest airline. It becomes the second OneWorld alliance member in which Qatar Airways has made a significant investment. Qatar already holds a 15-percent stake in British Airways parent International Consolidated Airlines Group (IAG) resulting from three separate share buys following its initial 9.99 percent acquisition in January 2015.  

Meanwhile, the Brazilian parliament continues to debate proposed legislation that could permit further foreign investment in the country’s airlines. Cade approved the Qatar deal, announced in July, without any restrictions.

Qatar’s move to buy into Latam appears consistent with the Middle Eastern carrier’s intentions to keep pace with the growth of its two big Gulf area competitors with a strategy not unlike that adopted by Etihad Airways, which participates in equity partnerships with seven other airlines around the world. Qatar CEO Akbar Al Baker has alluded to plans to take ownership stakes in at least two other major carriers, apart from its planned acquisition of 49 percent of Italy’s Meridiana in January.