Qatar Airways is developing its first class concept and pursuing aircraft orders from aviation giants Boeing and Airbus, as part of a broader strategic overhaul under the leadership of new group CEO Badr Mohammed Al Meer.
“This is a new era,” Al Meer told CNBC on Thursday, unveiling the changes at the airline after a “war room” review that lasted several months. Al Meer previously served as chief operating officer at Hamad International Airport in Qatar, took over as CEO of Qatar Airways from his long-time predecessor Akbar Al Baker in November, and is seeking to refresh the company's strategy and reset relationships with suppliers.
Al Meer confirmed to CNBC that Qatar Airways is now developing a high-throughput first class concept for its cabins.
“We wanted to combine the experience of flying commercially and flying on a private jet and develop something new,” he said. “We're 70% to 80% ready. We're just finalizing the colors and little touches, but hopefully we'll be able to announce it very soon.”
First class seats typically offer a more spacious, premium quality, and higher cost onboard experience. Some airlines have abandoned, reduced or rebranded first class seats in an attempt to increase plane space and provide more economy seats for budget travelers.
As well as preparing its First Class proposition, Qatar Airways is redesigning its Q-Suite premium seat class, with the latest offering set to debut at the Farnborough International Airshow in July.
new applications
The Gulf Transport Company also submitted a request for proposals to Boeing And Airbus Al-Mir said that the company has requested to purchase new “large” aircraft.
“We issued a request for proposals to create some competition among suppliers,” he noted, without revealing details. “We will go through the process, and with an order of this size, we have to take our time.”
Al-Meer wants to enhance its service offerings and capitalize on the momentum following the World Cup in Qatar, which helped the airline achieve record net profits of US$1.21 billion in the 2022-2023 financial year, as well as the highest yields and load factors in its history.
“The markets we want to grow in are China, India, Australia, Japan, Korea and a few others,” Al Meer said.
He separately noted that regional demand for aviation is high, and passenger numbers are up more than 30% in the past four months, while forecast growth is likely to be “more stable at less than 10% to 15%” for the rest of the world. the year.
A Qatar Airways Boeing 777 in New York.
Leslie Josephs | CNBC
The proposal to order the new aircraft comes in the wake of a major legal dispute between Qatar Airways and Airbus over safety concerns caused by paint deterioration. It also comes amid an ongoing crisis of confidence at Boeing after a Max 9 door explosion in January raised concerns about safety, quality controls and production and delivery delays.
“We are affected when our aircraft are not delivered on time,” Al Meer said. He added, “I know that Airbus and Boeing are facing certain problems. We have full confidence in both organizations, and they are strong enough to overcome those problems.”
Al-Meer indicated that he expects to receive Qatar's latest order of the Boeing 777X by the end of next year, adding that he is “110% confident” that Boeing manufactures safe aircraft.
Al Meer also said Qatar Airways would halt Al Baker's plans to quickly “phase out” its flagship Airbus A380 aircraft. Rival airline Emirates has also indicated that it will retain the aircraft, despite Airbus ending production in 2021.
Next steps
Al Meer has taken steps to address criticism of the airline's workplace practices, including relaxing a controversial night-time curfew rule for cabin crew and reversing a long-standing ban on Qatar Airways employees sharing workplace photos on social media.
“It was very clear that we needed to make some changes there,” Almir said. “We want our people, and we want the airline to be people's choice when it comes to working with us.”
The strategy update comes as Qatar Airways faces renewed pressure from rival Gulf carriers, such as Emirates and Etihad, as well as emerging companies such as Saudi Arabian Airlines, which are also buying aircraft to compete on major routes in the coming years.
Al-Meer said: “Competition will help us raise the standard.” “From my point of view, the pressure is on Riyadh Airways… They will have to compete with the best of the best.”
Al Baker played a key role in transforming Qatar Airways into a profitable global airline. He led the company through major events including the September 11 attacks, the global financial crisis, the Gulf diplomatic dispute, and the COVID-19 pandemic.
Now, his successor wants to bring the airline into a new era – dubbed “Qatar Airways 2.0” – during which he has not ruled out the possibility of an initial public offering.
“We may consider that in the near future,” he said when asked if Qatar Airways might consider going public. However, he stressed that the decision will fall on the stakeholders of Qatar Airways and the Qatari government.
