While most airlines are sheltering and tightening bootstraps in an attempt to weather the storm surrounding the global coronavirus pandemic, Qatar Airways is taking a much more aggressive approach.
Despite having its own struggles due to the pandemic, its CEO Akbar Al Baker has said today that its cargo operations will sustain the airline enough for it to support struggling Cathay Pacific if the need arises.
Cathay Pacific is the flag carrier for Hong Kong and Qatar is its third-largest stakeholder.
Speaking with The South China Morning Post, Al Baker stated, “Cathay is a well-established company and as a shareholder, if Cathay Pacific were to approach us for an equity injection, we will definitely support them.”
Qatar holds a 9.99 per cent stake in the airline and the airline has previously said it would be interested in increasing its share in the airline but has been limited by the number of public shares.
If Cathay Pacific need to raise some more cash by issuing new shares, Qatar Airways would be willing to help. Cathay has already raised HK$5.45 billion (US$703.15 million) by selling and leasing six of its Boeing 777s. But the airline has expressed continued concern about the state of its liquidity as travel restrictions continue.
Qatar is having its own difficulties and has cut staff, capacity, retired aircraft and deferred aircraft deliveries as the crisis has continued. Despite this it has been on a PR offensive in an attempt to maximise any gain available as the industry recovers by reopening routes, offering free flights for medical personnel and operating a very high number of repatriation flights across the globe.
In other airline news:
- After coming under fire after pictures of a packed flight were spread through the media, United will be offering rescheduling for people if flights look to be reaching close to capacity to allow passengers to choose less packed flights.
- Avianca will get rid of 14 aircraft as part of its current restructuring after filing for a Chapter 11 bankruptcy in the US. The airline chose these airplanes considering their age, leasing conditions, and maintenance cost.
- Russian low-cost carrier Pobeda today revealed plans to relaunch domestic services on 1 June. The airline, a subsidiary of Aeroflot, plans to resume 73 routes within Russia next month.
- The government of Israel is devising a plan to reopen Ben Gurion Airport. The country’s largest hub was closed in March amid the global health crisis. However, authorities are looking to open it again on 1 June.
- Brazilian airline GOL will receive $412 million compensation from Boeing for the grounding of its 737 MAX aircraft, the airline announced on 13 May. As one of the largest customers for the aircraft, the grounding has hit GOL hard, but it remains committed to the 737.
- The latest announcement from Air Belgium, released today, is that it hopes to re-start services on 24 June, after the government lifts a travel ban.
- A Croatia Airlines flight from Frankfurt to Zagreb on 2 May has been identified as the common denominator involving 12 people who are COVID-19 positive, and who recently arrived in Croatia from abroad. Croatia’s Institute for Public Health is now in the process of completing a track and trace operation for all 74 people on that flight, and their contacts.
- Just days after Etihad announced flights between Australia and London, rival airline Emirates has followed suit. The UAE carrier has announced that it will operate flights to nine destinations from next week.
