By Alex Lennane in Doha 27/10/2015 The outspoken CEO of Qatar Airways, Akbar Al Baker, added heat to the spat with legacy carriers today, accusing Lufthansa and Air France-KLM of bias and colluding to mislead the European Commission.Speaking at a Qatar Airways Cargo press event, he noted that the structure of Chinese carriers was the same as those in the Middle East. “Chinese carriers are sleeping giants. China is an economic superpower with huge growth potential.“I want to put one very simple question to people that always accuse us of subsidy. They never talk about Chinese carriers, because the business in China suits them. They want to concentrate on places where they get the highest yield, no competition and serves their purpose.“Chinese carriers don’t get subsidies. But they are all government owned. The government puts private equity into those companies – the same as my government does in Qatar Airways. But not every day. It’s one time and then we have to conduct our business … which we run on a commercial basis. “Nobody talks about it.Which means they are showing bias against us.”Referring to Chinese president Xi Jinping’s recent visit to Seattle, where an order for 300 Boeing aircraft was announced, he pointed out: “If my head of state walked in and bought 300 aircraft, the shit would hit the fan.”Mr Al Baker said that a potential merger between the big three Chinese carriers, intimated by China recently, would be a “very good thing”, allowing more slots to be released through the synergies achieved.“I hope in future we can partner with the Chinese carriers,” he said.He extended that to Europe’s carriers, but also accused them of collusion.“They are shrinking their business. But they don’t want that vacuum to be filled by anyone. I’m sure if these companies were in the US, there would be antitrust litigation against them because they are colluding by blocking competition, and keeping it out of their territory.“Brussels is not weak at all, but is being misled.”He suggested that instead the carriers should do business with Qatar in the same way as IAG Cargo.“They should realise we are not going to disappear. It is in their interests to work with us. Instead of operating inefficiently, they could work with us. I’m open for business with anybody,” he added. “In the interests of Qatar Airways, I’d even do business with the devil.”In the position of Europe’s legacy carriers, he said, he would stop fighting and start partnering.Akbar Al Baker“I wouldn’t waste my time lobbying governments, unions, employees. I’d roll up my sleeves and take on the competition head on. But they are more concerned with protecting their turf and making sure they squeeze the maximum out of their customers by giving them too little.”Also, and backed by other sources at the airline, he said the money at Qatar was carefully controlled.“We are not in the business of charity. Legacy carriers lose market share because they don’t provide efficiencies, which is why we can afford lower prices… their costs are too high. Carriers which have been around for the last 50 to 60 years have created an infrastructure that is incompetent for current market conditions.”He added that routes had to be profitable.And he couldn’t resist a dig at former partner Cargolux: “You can see what opportunities Cargolux lost when they lost our shareholding. I’m sure they are biting their nails.”Tomorrow: the rapid growth at Qatar Airways Cargo – and why rivals should be worried.
Related news The Supreme Court of British Columbia has ordered an investment advisor to return client list information to his former firm, National Bank Financial Inc. (NBF), but the court denied the firm’s request for an injunction to prevent the solicitation of clients to switch firms.According to the court decision dated May 24, NBF sued one of its former Vancouver-based brokers, Dwight Cameron Mann, members of the Mann Group team, and his new firm, Canaccord Genuity Corp., in connection with the team’s move from NBF to Canaccord in April. Court approves data breach settlements with BMO, CIBC flynt/123RF Keywords Switching firms, LawsuitsCompanies National Bank Financial Bitcoin surge doesn’t affect damages, B.C. court says Share this article and your comments with peers on social media When the Mann Group moved from NBF, it served approximately 2,500 clients (1,200 families) with $725 million in assets under management (AUM).NBF sought an injunction restraining the defendants from “disclosing or making use of client information and/or soliciting the plaintiff’s clients,” the court decision stated, along with an order requiring the defendants to return all copies of information related to clients, among other things.The B.C. Supreme Court granted the order requiring the defendants to return certain client information to NBF, but denied the other orders sought by NBF.Ultimately, NBF “failed to demonstrate a strong prima facie case that the non-solicitation provisions it relies upon are enforceable,” the court stated.“In the context of clients being served by investment advisors who move firms, the interests of the clients must be put ahead of those of the firm,” the court added.The court indicated there also are public interest factors to consider in deciding whether to grant an injunction, including clients’ rights to work with whomever they want, and the right for employees to compete in their industry.“Brokerage houses do not ‘own’ their clients,” the court stated. “Clients should be free to receive information from all competitive sources and to have the ability to decide if they wish to follow their investment advisor to the new brokerage house or stay with the old one.”Additionally, the court found that the loss of the clients would not do irreparable harm to a firm as large as NBF.“The plaintiff employs over 2,700 people in 86 offices across Canada. It has assets under its management exceeding $400 billion. There is no evidence regarding the quantum of the fees the plaintiff earned from the Mann Group. It is likely that the overall financial impact of the loss of the clients managed by the Mann Group will be relatively small,” the court stated. James Langton Universal life policies can’t be used for unlimited deposits, appeal court rules Facebook LinkedIn Twitter
Related news When the world caught Covid, diversified investors stayed healthy In a unique market cycle recently characterized by greater volatility, two reports reconsider active management and the traditional asset allocation mix.After fees, active investing typically doesn’t outperform passive, as is well documented by the S&P Indices versus Active reports (a.k.a. SPIVA). Share this article and your comments with peers on social media Michelle Schriver With bond yields low and rising, what is the price of safety? Facebook LinkedIn Twitter tidty/123RF Keywords Alternative investments, Asset allocationCompanies AGF Management Ltd. However, in an environment of low interest rates and high valuations for traditional assets, “downside risks are mounting,” noted a report from Geneva, Switzerland-based Unigestion, released Friday. As a result, active managers, with their focus on fundamentals and risk management, may be better placed than passive managers to ensure downside resilience and deliver returns in volatile markets, the report said.At the same time, active management must up its game if it wants the opportunity to capture alpha and make a difference to investors.To deliver better outcomes, active managers are embracing new technologies, such as machine learning and artificial intelligence, the report said. And those who allocate capital responsibly to finance growth in a sustainable way are part of an important secular trend toward “more purposeful capitalism,” it said.Active managers are also finding new ways to replicate the role of traditional assets. The need for new sources of return and diversification is driving the development of alternative risk premia strategies, the report said.The need to incorporate alternative strategies into portfolios given current market conditions was the topic of a recent AGF blog post. Examining a 60/40 asset allocation, Kevin McCreadie, CEO and chief investment officer at Toronto-based AGF Management Inc., said a simple combination of stocks and bonds won’t necessarily support adequate portfolio growth in an environment of tepid economic growth and persistent low yields.“Too many investors are ill-equipped to handle the growing risk of a late-cycle economy that, sooner or later, will culminate in a recession and major equity selloff,” he wrote.Incorporating alternative investments is a potential solution.“From long/short equity strategies to real assets including infrastructure, real estate and/or commodities such as gold, investors can enhance their 60/40 portfolios through different sources of potential yield and uncorrelated returns,” McCreadie wrote.For full details, read the reports from Unigestion and AGF. Hedge funds look to increase crypto exposure
The Jefferson County grand jury released the following indictments from July 24 on Wednesday:Travon Warren Gipson, 22, accident involving injury or deathJake Lee Ducote, 40, continuous sexual abuse of a child, indecency with a childKhang Nguyen Dang, 25, arson of a habitation, building or vehicle, 2 countsJayliyn Daquayn Adams, 24, aggravated assaultMarion Frank Danna, 32, burglary of a habitationSean Girratana Flythe, 32, aggravated assault, unlawful possession of a firearm by felonChristopher Anderson, 17, aggravated robberyUsherka Shunta Stoker, 39, aggravated robberySevero Saavedra-Galvan, 31, burglary of a habitationMichael Glen Gilbert, 33, attempted burglary of a habitationConstance Renee Johnson, 57, aggravated assaultJerric A. Tigner, 37, assault by chokingEddie Dwight Davis, 33, evading detention with a vehicleRobby Lee Guillory, 38, sex offender, failure to registerAshlei McGown, 26, DWI with a child passengerVeronica Marie Trimble, 45, DWIJoseph G. Rodriguez, 49, sex offender, failure to registerJonah Michael Turner, 22, theft between $30,000 and $150,000Ebony Kay Broussard, 35, felony escapeRogers Andrus Jr., 45, credit/debit card abuseMonte Gallo, 40, unlawful possession of a firearm by a felonDustin Narcisse, 20, Evading detention with a vehicleRichard Perkins Jr., 73, unlawful possession of a firearm by a felonDevyn Snyder, 23, theft less than $2,500 with prior theft convictionsDaniel Jacob Dominguez, 19, evading detention with a vehicleHarold Skeeter Edgington, 25, evading detention with a vehicleZaques D. Grogan, 18, evading detention with a vehicleMarcus Renard Hubbard, 28, evading detention with prior convictionsMitchell Lee Rawlins, 25, evading detention with a vehicleAnthony Jerome Hickmon, 38, tampering with evidence Next Up