Dubai: Qatar Airways is looking to buy a 33 per cent stake in European all-cargo airline Cargolux, Akbar Al Baker, CEO of Qatar Airways, said on the opening day of the Arabian Travel Market 2011.
"We are looking to buy a 33 per cent stake in Cargolux. We are going to sign an agreement with them in the next few weeks," he said, without divulging the investments into the carrier.
Stating the reason behind the move, Al Baker said: "We see there are synergies and Qatar Airways would like to expand. And I always said we would only be interested in other airlines if they are healthy and well established and if they will add value to our airline."
In focus: Arabian Travel Market
He added: "We will not invest in an airline — no matter how attractive it is — which will take our management time and management resources.
"We want to strike partnerships with established airlines which are efficient. That will add value to the bottom line of Qatar Airways."
The airline, meanwhile, carried 16 million passengers in financial year 2010-2011, and the average load factor for the period exceeded 72 per cent, Al Baker said.
Qatar Airways expects its net profit for financial year 2010-2011 to exceed $250 million, Al Baker said. "Our audit figures are not out yet, but we still think it would be in this region," he said.
The airline's profit in the last fiscal (2009-2010) was $205 million.
When asked about the profitability target, Al Baker told Gulf News: "I cannot disclose that."
However, he reportedly said last year that the Doha-based carrier is likely to achieve profitability by 2012.
Qatar Airways still has plans to launch an initial public offering (IPO), Al Baker said.
"When we are continuously three years into profit, we will go for an IPO and we are very much on that track and maybe we will give you good news earlier than that," he said. Asked if the carrier had any plans to sell a bond, Al Baker said: "We don't need to sell bonds. We are a state-owned company. We'd like to keep everything in-house at the moment."
This year the airline will receive about 10 aircraft, according to Al Baker. Commenting on funding requirements for them, he said: "They are funded by us. We are fine."
He added that the airline will take delivery of one aircraft every 18 days on an average, with the 100th — a Boeing 777 — to be delivered in July.
This year, the carrier will receive 777-300 ERs, A320s, A321s and one 777-200 freighter, Al Baker said.
Qatar Airways is still planning to launch a low cost carrier if required, according to Al Baker.
"We are still thinking about it. We are constantly thinking about a low cost carrier.
"If it is going to affect our market share then we will launch it. As long as it is not doing so, we will not get into the LCC business," he told Gulf News.
The geo-political unrest in the Middle East will have an impact on the airline's revenue, according to Al Baker.
"We lost revenue in three months in some of the very good revenue producing and good yield areas," he said.
"But at the same time, the airline is very resilient.
"When we lose somewhere we immediately make up for it somewhere else. So we always keep our revenues flowing," he added.
Having suffered massive delays on the Boeing 787 deliveries, Al Baker said that all problems with this aircraft have now been resolved.
Qatar Airways, which has 60 Dreamliners [787s] on order (30 firm orders and 30 options), will receive the first pair of aircraft in February 2012, Al Baker said, adding that the carrier had specific delivery dates from Boeing, and that it now expects to take 787 deliveries earlier than indicated "once Boeing starts the second production line".
Plans to order more A380s
Qatar Airways, which has five Airbus A380s on order, plans to order additional superjumbos, Al Baker said.
"We are in negotiations to purchase additional A380 aircraft," he said without divulging further details.
The Doha-based carrier is also the largest customer for Airbus A350 XWB (extra wide body) with 80 aircraft on order, with the first one to join the airline's fleet when the new Doha International Airport opens, Al Baker stated. The carrier expects its fleet size to reach 120 aircraft within two years, with links to 120 destinations. It managed to increase its fleet size from 72 aircraft in December 2009 to 97 planes at present.
Analysts say they expect this to happen soon.
"I'm told that the A380 order will almost certainly be announced at next month's Paris Air Show and could comprise at least 20 firm orders for the type with a similar number on option. If I hear more, I will let you know," an industry analyst told Gulf News.
