Qatar Airways to buy stake in Europe’s largest all cargo carrier Cargolux

• Expects Boeing 787 delivery earlier than dates indicated
• To take delivery of 10 aircrafts; fleet at 110 for 2011
• Sees 2010-11 profit at $250 mln vs $205 mln year ago

DUBAI (Reuters) - Qatar Airways, one of the Arab world’s largest carriers, expects to sign a deal for a 33-percent stake in European all-cargo airline Cargolux in a few weeks, its chief executive said.

Cargolux, Europe’s largest all-cargo airline, has previously said it was in talks to sell stake to a strategic investor.

“We are soon going to sign an agreement with them (Cargolux) ... in a few weeks. We see there are synergies and Qatar Airways would like to expand,” Chief Executive Akbar Al Baker told reporters in Dubai. He did not give a value for the deal.

Abu Dhabi-based rival Etihad Airways tried to buy a 33.7 percent stake in Cargolux in 2005. At that time reports put the price of the deal at $130 million.

Qatar Airways, half-owned by the Gulf Arab state’s sovereign wealth Qatar Investment Authority, will continue to scout for other deals in the future, the chief executive said.

“We will only be interested in other airlines if they are healthy, well established and will add value to Qatar Airways,” he said.

Al Baker was quoted last month as saying the airline was on the lookout for acquisitions this year. [ID:nLDE729205]

The airline said in December it is planning to launch an initial public offering (IPO) in early 2012 after three consecutive years of profit. [ID:nLDE6BI01D]

Qatar Airways will list the planned IPO in Qatar and abroad, and a London listing was one of the options, Al Baker said on Monday.

The airline expects to post a net profit of over $250 million for its financial year ending 2010-2011, compared with $205 million for the year-ago period, the CEO said.

 

Deliveries strong in 2011

Qatar Airways sees its fleet size growing to 120 aircraft over the next two years, reaching 110 in 2011 with the expected delivery of 10 aircraft this year as it opens new routes and expands its geographical footprint, the chief executive said.

He said the airline, which has been facing delays for the Boeing 787, now has specific dates from the plane maker and expects to take delivery earlier than indicated.

A year ago, it increased its orders from two to six and said it expected to take delivery by September 2011. [IDL:nLDE6430XR]

Al Baker has heavily criticised Boeing (BA.N) in the past for delay in delivery of the 787 Dreamliner aircraft and has threatened to shift extra business to Europe’s Airbus (EAD.PA). [ID:nLDE6AO1EE]

Qatar and other Gulf airlines want new planes delivered quickly to support their plans to make the region an important hub.

Qatar, the world’s largest exporter of liquefied natural gas, is building a new airport with the capacity to accommodate 50 million passengers per year.

The funding for 10 aircraft scheduled for 2011 will be done internally and the airline had no plans to raise money through sale of bonds in the near future, Al Baker said.

“We are very ok. We like to keep everything in house at the moment,” he said.