Thursday, July 24 - 2008

Qatar Airways looking to be big in America

When AME Info was confronted by both an Elvis Presley lookalike and a giant walking, talking Statue of Liberty at Qatar Airways' stand at the Arabian Travel Market in Dubai last week, it was a fair bet to assume the Qatari flag carrier was just a little bit chuffed at launching its first US flights in a few weeks time. CEO Akbar Al Baker was also extremely upbeat about the new destinations when he faced up to the assembled press.

Qatar: Wednesday, May 09 - 2007 at 16:37
Qatar Airways' CEO Akbar Al Baker meets the press at last week's Arabian Travel Market in Dubai
Qatar Airways' CEO Akbar Al Baker meets the press at last week's Arabian Travel Market in Dubai

related stories
The rapidly expanding airline will take its total number of destinations to 77 when it embarks on its US route expansion programme on June 28 with four flights a week between Doha and Newark International Airport, via Geneva, followed by daily non-stop services linking the Qatari capital with Washington DC, from July 19. Qatar Airways has already launched five other destinations this year, namely Dar es Salaam, Lagos, Chennai, Bali and Ho Chi Minh City, but Al Baker described the upcoming 'historic' American offering as the 'biggest route launches of the year'.

Diplomatic over delays

But while Al Baker was excited at the prospect of the new routes becoming key selling destinations for the airline, he did concede that obtaining approval for the US flights, which were originally slated for January 2007, was not so straightforward.

'It is not easy getting approval from the US and being an Arab carrier makes it harder. So that it why we have had the delay, as the US authorities have their procedures. But other airlines are also hampered by the regulatory process.

'We must not blame the US, they had a terrible experience with 9/11 and they need to be careful. All countries have concerns at the volatile nature of terrorism. But it's true they are very stringent.'

Al Baker also alluded to the fact that further regulatory wrangles in Switzerland were a major factor behind the airline's initial schedule of four flights a week to Newark International Airport via Geneva. He did say, however, that this route will be stepped up to a daily service next year. But with regard to the various obstacles faced in securing such routes, he predicted however that, with the level of growth taking place in the Gulf, as well as in Asia, Western democracies would soon have to start 'answering our needs'.

Maximising returns

To publicise the new US route launches, QR has already begun a major media campaign across English and Arabic newspapers in the GCC region, featuring iconic American images such as the White House and the Statue of Liberty.

The airline will also be endeavouring to make the most of its foothold in the US, once flights actually get underway, by utilising possible code share agreements to ensure that its initial points of entry can provide connections to many other additional US cities. Al Baker claimed Qatar Airways has understandings with several carriers with regard to accessing the wider US network, including Continental Airlines, Lufthansa and Virgin Atlantic.

But much closer to home, Al Baker also acknowledged the role Dubai plays as a major regional urban centre in boosting QR's load factors and generating revenue.

'Qatar Airways recognises the importance of key neighbouring markets like the UAE to feed traffic on to our network and I am pleased to announce that we are stepping up frequency on the Doha - Dubai route with an additional daily flight, taking our operation from seven to eight flights a day.'

Staying aggressive

Al Baker is determined that, aside from the new US services, the airline keeps growing swiftly in all its main markets. He pointed to increased and improved services to a number of Arab destinations, such as Tunisia, Libya, Algeria and Morocco, and blamed the constraints of aircraft delivery schedules for any apparent tardiness in the carrier's expansion programme.

He also said that, dependent upon Airbus delivering enough aircraft, Qatar Airways may launch a total of 11 new routes this year, rather than the planned nine, and it was determined to maintain any equally aggressive growth policy next year.

But while QR and local rivals such as Etihad and Emirates ponder extra routes and huge orders for new aircraft, Al Baker did strike a surprising note of caution for the likes of Air Arabia, Jazeera Airways and any other potential low cost carriers looking for a sizeable slice of the action in the Middle East market.

'In the Middle East, there is room for growth for the existing carriers but maybe not room for extra carriers to come into the region. Our region is not compatible with low-cost carriers in my opinion and, longer term, I think there will need to be some painful decisions made.'


Jonathan Sheikh-Miller Jonathan Sheikh-Miller, Deputy Editor
Wednesday, May 09 - 2007 at 16:37 UAE local time (GMT+4)

Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of AME Info FZ LLC / Emap Limited.

This Article was updated on Tuesday, June 26 - 2007
Disclaimer:
The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of the AME Info Web site does not constitute advice or a recommendation by AME Info FZ LLC / Emap Limited and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this AME Info Web site.

AME Info FZ LLC / Emap Limited can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made by any of the contributors to the various columns on the AME Info Web site nor do opinions of contributors necessarily reflect those of AME Info FZ LLC / Emap Limited.

In no event shall AME Info FZ LLC / Emap Limited be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to the AME Info Web site or the information contained in it, whether such damages arise in contract, negligence, tort, under statute, in equity, at law or otherwise.