Ambitious plans by Qatar Airways to grow its presence in the European air freight market face a setback after the collapse of a partnership with the cargo airline Cargolux.
The Luxembourg carrier said that Qatar Airways would divest its 35 per cent stake in the freight airline, less than 18 months after announcing the deal.
"Cargolux Airlines International today confirmed that Qatar Airways intends to exit its 35 per cent shareholding in Cargolux," the company said.
Qatar Airways disagreed with the strategic direction of the airline and wanted to cut costs and transfer some operations to its Doha hub, according to media reports.
"The Luxembourg and Qatari shareholders disagreed on the future strategic orientation of the airline, which led to Qatar's decision to pull out of Cargolux," a spokeswoman for Cargolux told Reuters.
Albert Wildgen, who joined the Cargolux board in September last year, also announced his decision to step down from his post as chairman.
Cargolux said the remaining shareholders, Luxair, BCEE (Banque et Caisse d'Epargne de l'Etat) and SNCI (Société Nationale de Crédit et d'Investissement) had confirmed their support for Richard Forson, the interim president and chief executive, who would take the airline through this "difficult phase of restructuring.
"There are many significant challenges facing Cargolux and the shareholders remain committed to implementing those actions that will ensure it long-term sustainability," the company added.
Qatar bought into the airline when it was facing a difficult period, contending with high fuel prices and slow demand in Europe.
Arabian Gulf airlines are boosting investment in cargo at a time when much of the global air freight industry is suffering. Profitability in the sector came under pressure in the third quarter, according to Iata. The body said that while freight load factors had stabilised in the first half of the year, aircraft utilisation had been declining and cargo yields were expected to decline over the next year.
Cargolux made a net loss of US$18.3 million (Dh67.2m) last year as a result of "excess of capacity supply versus demand", it said in its annual report. The loss was also attributable to prolonged delivery delays in its Boeing 747-8 freighter programme.
"Our investment in Cargolux, a sound, healthy and profitable company and a leading all-cargo carrier, will deliver great value to Qatar Airways proving to be an excellent strategic partnership," said Akbar Al Baker, the chief executive of Qatar Airways when the two companies announced a deal last June.
Financial terms of the deal were not disclosed.
The purchase of Cargolux was part of plans by Qatar Airways to become one of the largest cargo airlines in the world within five years.
Qatar Airways declined to comment on the sale of its stake in Cargolux.
Last week, the airline took delivery of its first Boeing 787 aircraft.
rjones@thenational.ae
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Director: Jay Roach
Stars: Nicole Kidman, Charlize Theron, Margot Robbie
Four out of five stars
Did you know?
Brunch has been around, is some form or another, for more than a century. The word was first mentioned in print in an 1895 edition of Hunter’s Weekly, after making the rounds among university students in Britain. The article, entitled Brunch: A Plea, argued the case for a later, more sociable weekend meal. “By eliminating the need to get up early on Sunday, brunch would make life brighter for Saturday night carousers. It would promote human happiness in other ways as well,” the piece read. “It is talk-compelling. It puts you in a good temper, it makes you satisfied with yourself and your fellow beings, it sweeps away the worries and cobwebs of the week.” More than 100 years later, author Guy Beringer’s words still ring true, especially in the UAE, where brunches are often used to mark special, sociable occasions.
THE%20SWIMMERS
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● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The biog
Favourite car: Ferrari
Likes the colour: Black
Best movie: Avatar
Academic qualifications: Bachelor’s degree in media production from the Higher Colleges of Technology and diploma in production from the New York Film Academy
Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
COMPANY%20PROFILE
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Developer: Treyarch, Raven Software
Publisher: Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
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Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
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Fines for littering
In Dubai:
Dh200 for littering or spitting in the Dubai Metro
Dh500 for throwing cigarette butts or chewing gum on the floor, or littering from a vehicle.
Dh1,000 for littering on a beach, spitting in public places, throwing a cigarette butt from a vehicle
In Sharjah and other emirates
Dh500 for littering - including cigarette butts and chewing gum - in public places and beaches in Sharjah
Dh2,000 for littering in Sharjah deserts
Dh500 for littering from a vehicle in Ras Al Khaimah
Dh1,000 for littering from a car in Abu Dhabi
Dh1,000 to Dh100,000 for dumping waste in residential or public areas in Al Ain
Dh10,000 for littering at Ajman's beaches