IAG Cargo extends Qatar Airways deal
AUG 5, 2015: IAG Cargo has significantly extended its capacity partnership with Qatar Airways, one year on from the signing of their landmark freighter deal. In addition to a contract extension, IAG Cargo and Qatar Airways have created one of the broadest collaborations in the cargo industry by expanding the number of destinations the deal covers to nine routes.
IAG Cargo is the single business created following the merger of British Airways World Cargo and Iberia Cargo in April 2011. In 2014 the operations of British Airways World Cargo and Iberia Cargo had commercial revenue of €992 million.
According to Steve Gunning, CEO of IAG Cargo, “Our freighter partnership model with Qatar has worked very well. That’s why today I am pleased to announce that we are extending the deal indefinitely, as well as increasing the number of destinations covered through the partnership. Through such agreements we are able to support our customers where they need us and drive network growth in an asset light way. This puts IAG Cargo in a strong position and allows us to focus on delivering the quality products and services our customers demand.”
Ulrich Ogiermann, Qatar Airways Chief Officer Cargo, commented: “Qatar Airways Cargo is delighted to further enhance its freight operations and strengthen existing commercial ties with IAG Cargo. As the world’s fifth largest cargo carrier, Qatar Airways Cargo’s expanding fleet and exceptional growth, together with our proven reliability and global network, offer a strong platform to enable bilateral alliances. Our collaboration with IAG Cargo has proved successful over the past year and this partnership continues to represent an excellent opportunity to develop our business strategy through mutually beneficial commercial agreements.”
Qatar Airways now operates nine routes on which IAG Cargo purchases capacity, in what has become one of the largest cargo partnerships of its kind. A new Shanghai to Madrid service and a new feed from Islamabad to the IAG Cargo network have launched, representing this latest stage of the partnership. IAG Cargo is also increasing the capacity it books on the regional routes, covered by the Qatar Airways partnership.
By connecting to IAG Cargo’s wider network through its London and Madrid hubs, today’s deal opens up valuable routes for businesses looking to trade between Asia, Europe and Latin America. The deal will prove particularly beneficial in supporting flows of garments from Pakistan and consumer electronics from Shanghai.