Dubai:
Qatar Airways is willing to walk away from buying into Meridiana if the Italian airline’s employees do not accept “some pains,” Group Chief Executive Akbar Al Baker said Monday.
A memorandum of understanding was signed between the two carriers in February that outlined conditions of a partial stake sale. However, Qatar Airways is adamant that the Sardinia-based airline must be willing to restructure, including cuts to its workforce, for a deal to be reached.
“We will not sign anything unless we are absolutely certain our partnership with Meridiana will be a success,” Al Baker said at a press conference in Dubai at the Arabian Travel Market.
Under European law, Qatar Airways, the Middle East’s second largest airline, could buy up to 49 per cent of Meridiana. It already owns 10 per cent of British Airways parent IAG and has been linked to India’s SpiceJet and IndiGo.
Qatar Airways is in “advanced negotiations with Meridiana,” including with employees and unions, said Al Baker who believes the company has more employees than it needs.
“Us partnering with Meridiana would only make Meridiana prosper, grow and actually increase the working population of Meridiana but for the initial period there will be some pains on part of the employees and they have to accept this,” he said.
Meridiana, which lost 155 million euros (Dh621.5 million) in 2013, when it last reported numbers, connects Sardinia and Sicily with Italy’s major airports and also flies to Egypt, Greece, the Canaries and several long-haul destinations.
“If we reach an amicable settlement with the restructuring of the company we will partner,” Al Baker said.
Qatar Airways is still interested in buying a stake in IndiGo, despite missing out during the airline’s partially listing this year due to other carriers barred from being involved.
“If there is another opportunity where an airline would be able to take a stake in an expansion the shareholding offer, yes Qatar Airways would be interested in IndiGo again,” he said.
