Emirates, Qatar Airways to outpace Europe with major cargo expansion

Monday, 6 June 2011 00:00 - - {{hitsCtrl.values.hits}}

DUBAI: Qatar Airways and Emirates, already luring passengers from British Airways and Air France, will extend the contest to the $68-billion air-freight market by turning their bases into global cargo hubs.

Emirates, the world’s biggest airline by international passenger traffic, aims to add as many as 18 cargo planes in Dubai , while Doha-based Qatar Air is converting 15 passenger jets to freighters and buying 33% of Cargolux Airlines International, Europe’s biggest freight-only carrier.

The plans are sounding alarm bells at companies already under pressure as Emirates builds a fleet of 90 super jumbos and Qatar awaits delivery of 200 jets worth $35 billion as part of a bid to persuade travellers to fly via the Gulf instead of London, Paris and Frankfurt. SkyTeam Cargo, which includes the freight arm of Air France-KLM Group, is concerned about the expansion.

Qatar Air CEO Akbar al Baker said in an interview that the Middle East’s No. 2 passenger carrier will become “one of the major players in cargo” by 2015 as the addition of Cargolux creates “a very potent airline”.

Qatar currently has a five-strong freighter fleet of Airbus SAS A300s and Boeing Co. (BA) 777s. That will rise to 16 planes with the addition of 11 Boeing 747 freighters from Luxembourg-based Cargolux, into which the CEO says he’s prepared to inject more cash for expansion as required. The total may reach 31 including the A330 passenger models earmarked for conversion.

Emirates has a total of eight 747 and 777 freighters, plus orders for five of Boeing’s updated 747-8s and two 777s and nine options, giving a possible total of 24 dedicated cargo planes. In expanding their freighter fleets the Gulf carriers are bucking a trend to focus cargo provision on the holds of passenger jets. Paris-based Air France-KLM (AF), Europe’s biggest airline, moves 75% of its goods as belly freight and has 14 specialist planes, including five at Dutch cargo-only unit Martinair, while British Airways has just three leased 747Fs.

Even Lufthansa, the biggest cargo carrier among passenger airlines with a 50:50 split between belly freight and cargo aircraft, has only 18 Boeing MD-11 freighters at its main hub in Frankfurt. The Cologne-based company also operates six 747s through a business with China’s Shenzhen Airlines and eight 777s via a venture with Deutsche Post’s DHL Express.