Categories: Finances

Qatar Airways’ breakneck growth will slow after next big plane order, says CEO

Unlock the Editor’s Digest for free

Qatar Airways will end a period of breakneck growth after one more large aircraft order, its chief executive has said, claiming the service offered by competitors has gone downhill because they have expanded too fast.

Badr Mohammed Al-Meer said Qatar Airways Group, which includes the airline and Doha airport, was in talks with Airbus and Boeing over aircraft orders that will help it to increase passenger numbers from its current 50mn a year to 80mn annually over the next five to six years. But after that, “we will slow down,” he told the Financial Times in an interview.

“We will reach capacity at [Doha’s Hamad international airport], and that’s it,” he said.

“If we want to continue growing at the same speed, we can . . . But can I guarantee you that . . . I can provide the same level of service? No, nobody can do this,” he said, adding that at “many competitors inside the region and outside . . . the quality of the service has deteriorated and people are not getting what they’re paying for”.

His comments hint at the fierce regional rivalry in the industry, where deep-pocketed sovereign owners use airlines as engines of growth and connectivity and to project soft power.

Qatar Airways competes with Dubai’s Emirates and Abu Dhabi’s Etihad, which is expected to become the first regional airline to launch an IPO in two decades this year. Saudi Arabia has also outlined plans to expand its airlines and airports as part of efforts to diversify its economy. Etihad declined to comment, Emirates did not respond to a request for comment.

Dubai has the world’s busiest international airport: Dubai International had a record of more than 92mn travellers in 2024. Last year the emirate announced plans to further develop one of its other airports, Dubai World Central, into a five-runway behemoth that will accommodate 150mn passengers annually within 10 years.

Meer dismissed the idea that Dubai’s expanding capacity would affect Doha airport. “Would you rather have dinner at McDonald’s or go to a Michelin star restaurant?” he said.

Qatar wants to attract more tourists and international business. Previously “we were not marketing it properly”, Meer said, but added that a “stop over” offering from Qatar Airways should help boost visitor numbers.

Meer said the airline would also focus on expanding its partnerships with other carriers. It has bought minority stakes in airlines around the world over the past decade, including a 25 per cent stake in Virgin Australia and in International Airlines Group, which owns British Airways and Vueling among others. It also has stakes in Latam Airlines, South Africa’s Airlink, Cathay Pacific, and China Southern Airlines.

Meer added that a long-delayed deal to buy a stake in African airline RwandAir could happen within the month and that Qatar Airways was evaluating other M&A opportunities.

The airline would focus on expanding its network by feeding passengers into these partner carriers to continue their journeys, he said.

The chief executives of several European airlines have said they struggle to compete with deep-pocketed Gulf rivals like Qatar Airways, which are not subject to the same environmental taxes. European airlines are also banned from Russian airspace, making it more expensive for them to fly to east Asia because they have to take longer routes, using more fuel.

This week, Air France-KLM chief executive Ben Smith told the FT that European airlines did not compete “on a level playing field” with Gulf carriers.

But Meer dismissed any complaints: “They’re talking about not being able to compete with us. There are so many things they can provide their customers and they’re not willing to do it, whether it is the design of their cabins . . . the Wi Fi speed . . . the catering . . . the quality of service you get on the ground. So many things which have nothing to do with sustainability or flying over Russia.”

Source link

nasdaqpicks.com

Share
Published by
nasdaqpicks.com

Recent Posts

SJVN Partners with Chhattisgarh for 1800 MW Pumped Storage Project

SJVN Ltd has signed a Memorandum of Understanding (MoU) with the Government of Chhattisgarh and…

8 seconds ago

The new economic stars born through crisis

Financial stress is forcing reform and recovery in many overlooked countries  Source link

2 minutes ago

4 key reasons why Jefferies remains positive on metals with Tata Steel, Hindalco as its top picks

Stock Market today- The Nifty Metals index with gains of almost 9% in a month…

8 minutes ago

Cargill inaugurates new corn milling plant in Gwalior

Cargill has inaugurated a new corn milling plant in Gwalior, set up by Saatvik Agro…

15 minutes ago

Greenland independence debate ‘on steroids’ ahead of election

Donald Trump’s threats to take over Greenland have energised the Arctic territory’s long-simmering independence debate ahead of…

18 minutes ago