(JB) Qatar Airways is now officially the second biggest shareholder in Luxembourg air freight company Cargolux after a purchase transaction was completed on Thursday.
Yesterday both parties signed on the dotted line for the much-anticipated strategic equity partnership between the two cargo titans, leaving Qatar Airways the owner of a 35% share in Cargolux International Airlines.
The news of the deal's closure came late on Thursday. Qatar Airways' interest in the company first emerged earlier this year but final agreements could not be reached until the deal was cleared by all competent authorities concerned.
Cargolux welcomed the partnership, suggesting that it will provide complementary value to its services. It said in a statement: “The strategic partnership with Qatar Airways enables Cargolux to enhance its competitive position as an independent leading air cargo operator.
"The transaction increases the attractiveness of the Cargolux network through increased reach and scale. It also gives the Company access to additional capacity and new destinations and strengthens the Luxembourg and Doha hubs.”
Qatar Airways' share purchase from the Luxembourg government makes the Doha-based airline the second largest shareholder in Cargolux, behind Luxair, which holds a 43.4% share.
In addition the Banque et Caisse d'Epargne de L'Etat (BCEE) holds a 10.9% share and the Société Nationale de Crédit et d'Investissement (SNCI) holds 10.7%.
Cargolux is European's largest all-cargo airline, covering 90 different destinations and employing some 1,500 staff worldwide.