Qatar Airways takes a stake in Cargolux

Qatar Airways has bought a 35% stake in cargo-carrier Cargolux as it seeks to increase its global reach for passengers and cargo.The agreement was signed yesterday in Luxembourg but neither airline have revealed how much the deal was worth.   Some estimates have put the deal at somewhere €150 million (US$217m) and €200 million. 

Qatar Airways, which is half-owned by Qatar’s sovereign wealth investment authority, bought the stake which was formerly owned by Swissair Group and was taken over by the Luxembourg government and other groups when the Swiss airline hit financial turbulence during the recession.

Qatar airways have been on a spending spree of late with additional and replacement aircraft and see this as a logical step to increase their reach in the aircargo market. Doha-based Qatar Airways Cargo provides freight services to more than 100 destinations worldwide, using the cargo space available on the carrier’s passenger fleet, and dedicated freighter aircraft to over 30 destinations. 

Qatar Airways operates a mixed fleet of 98 aircraft, including five freighters – three A300-600s and two B777s. It has a further four B777 freighters due to join its fleet over the next few years.  Cargolux operates a fleet of 16 B747 freighters to over 90 destinatiions. It also has on order, 13 of Boeing’s next-generation widebody 747-8 freighters.

It will be interesting to see how this partnership develops going forward but as a sign of intent from Qatar Airways it is quite an emphatic statement.