Dubai: Emirates Group’s aviation services unit dnata is in talks to acquire a cargo handling business in Canada in what could be its second North American acquisition since entering the market in April.
Last month, dnata acquired for an undisclosed sum Ground Services International (GSI), a ground-handling operator at more than 20 airports, including “major international gateways,” in the United States.
“We’re in some discussions already with a small organisation [in Canada] … on the cargo side,” president Gary Chapman told Gulf News in an interview at an exhibition in Dubai on Tuesday.
Dnata, who reported this month a record a Dh1.1 billion profit for the 12 months ending March 31, has made a series of acquisitions in airport and travel services companies globally in recent years.
The company has Dh3.5 billion in cash assets at its disposal and Chapman said he is confident they have “the ability to acquire more” North American businesses following the March GSI purchase.
Talks have also started to acquire part — or whole — of at least two other airport services companies in the United States since April’s acquisition, Chapman said declining to disclose who the companies were.
Dnata is entering the North American market following a tense period between major American and Middle East airlines, including dnata’s sister company, Emirates, who are also owned by the Emirates Group.
US carriers American, Delta and United have accused Emirates, Etihad Airways and Qatar Airways of receiving $42 billion in state subsidies from their government owners, an allegation the Middle East carriers deny.
Chapman dismissed suggestions that animosity between those airlines could lead to the American carriers using other company’s ground handling services in the US.
“At the end of the day businesses have a responsibility to their shareholders to do the right thing by their business and that is to look for the right quality at the right price and I believe that is what ultimately will dominate and drive a decision,” he said.
Dnata is also in talks in South America following the majority acquisition of Brazil’s RM Ground Services in November.
“We’re talking with different airlines about how we are able to work with them more strategically and that means outside of Brazil.”
