News
Qatar Airways builds IAG stake, Etihad reports a profit and Turkish Airlines “interested in A380neo”
April 29th 2016
Qatar Airways has increased its shareholding in International Airlines Group (IAG) from 9.99%, to “just under 12%,” CEO, Akbar al Baker, told media at this week’s Arabian Travel Market in Dubai, adding his airline has received two dividend payments, with a third expected soon, since its initial buy-in in January 2015. Read More »
Separately, the outspoken Al Baker said talks about Qatar Airways taking a 49% stake in Sardinia-based regional carrier, Meridiana, had advanced, but have not been finalized. The airline also has the option of acquiring 25%-49% of Moroccan flag carrier, Royal Air Maroc, Al Baker has said. It also is widely known that Qatar Airways is seeking equity in fast-expanding Indian carrier, IndiGo Airlines.
Separately, following lengthy delays in deliveries of its 50 on-order A320neo family aircraft, the Qatar CEO said the airline was “studying its options” suggesting Qatar might walk away from the deal and order Boeing’s 737NGs. Boeing is “trying to oblige and give us the aircraft we require”, he said.
Aerospace analyst, Scott Hamilton, told Seattle’s Puget Sound Journal he was sceptical about Baker's comments: “Akbar Al Baker is notorious for complaining in the press and negotiating in the press. It used to be he complained about the 787 delays. Then the A380 quality. Then A350 quality,” he said. “Unless Boeing has a bunch of NGs just lying around, Qatar can’t get any for a few years."
In better news for Airbus, Al Baker earlier this year said Qatar Airways was now readying itself for delivery of the last four A380s out of an order for ten. The carrier had earlier asked Airbus to delay the remaining frames by a year while it was evaluating their performance. With the fuel price now significantly lower, Al Baker said the Airbus super large airliner produced much more favourable route economics and Qatar Airways might even exercise its three additional A380 options.
Qatar rival, Emirates, is the A380’s best customer. It has ordered 142 of the type, of which 75 are in service. The Dubai-headquartered carrier has said repeatedly it would place a significant top-up order if Airbus developed a re-engined A380neo option.
Turkish Airlines chief marketing officer, Ahmet Olmustur, also speaking in Dubai, told Bloomberg the Turkish flag carrier would be interested in the A380neo to serve capacity-constrained China and India, where the carrier is struggling to obtain bilaterals and/or slots.
Olmustur said the B747-8 also is under consideration because the jumbo jet’s belly capacity might make it better suited to destinations such as Hong Kong, He added Turkish is evaluating again the leasing of second-hand A380s in the short-term.
The third member of the Gulf triumvirate, Etihad Airways, on Wednesday announced profits of $103 million in 2015 from total revenues of $9.02 billion, up from $73 million and 7.6 billion in 2014, and marking a fifth consecutive year in the black.
Separately, after months of speculation, Etihad Airways protégé, Alitalia, has announced it has inked a memorandum of understanding with the board of directors of Air Malta and the Maltese government to complete a comprehensive due diligence with the intention of becoming a 49% stakeholder in the Maltese flag carrier.
Qatar Airways has said it will publish its financial results for the first time this June after drawing heavy criticisms calling for greater transparency. The Doha-based carrier earned a $103 million net profit in 2014, Al Baker said last year, although the airline did not corroborate this with audited figures.
Emirates is due to announce its full-year numbers for the year ended March 31 next month. The carrier’s year-ago profit rose 38%, to 5,893 million dirhams ($1.25 billion).
