http://www.thenational.ae/article/20090331...73827181/-1/ART
QUOTE
HOUSTON // Qatar Airways, the second-largest Arab-nation carrier, will order new aeroplanes in June and add an average of seven routes a year for the next five years as it sees opportunities for growth despite the slowdown in air travel.
The Doha-based airline plans to double its coverage of US cities from three to six in the near future and also launch its first destination in South America next year, says Akbar al Baker, the airline's chief executive. A "major order" of aircraft is planned for the Paris Air Show this summer, he says, without disclosing details. "You'll have to wait until the air show." He also dismisses fears that the slowdown is rapidly becoming more severe.
"In my opinion this is not a crisis, this is an economic downturn which we will weather," he says. "Whenever there is an economic downturn there are opportunities. And we are very clever about those opportunities." He cites Qatar Airways's upcoming services to Goa and Amritsar in India as two markets that hold potential but have escaped the notice of other carriers.
Even as the company plans far beyond the downturn, however, Mr al Baker acknowledges the effects of the slowdown. Passenger growth this year will be the airline's lowest in 12 years, and less than the growth in new capacity.
In its February-March Financial Monitor, released this week, the International Air Transport Association (IATA) said that "passenger demand has not found a floor and is now declining at a faster rate". However, the Middle East fared better than worldwide airline performance, growing passenger traffic by 0.4 per cent compared with negative 10.1 per cent globally.
David Kaminski-Morrow, an editor at Air Transport Intelligence in London, says: "One of the main problems with the current downturn is that it is damaging the premium market, and it's the front end of the aircraft that is considered the place where profits are made. The Middle East market is arguably cushioned slightly but certain key markets – India, notably, and the cargo sector – are nevertheless a concern."
By contrast, Qatar's flag carrier believes it can increase passenger traffic by nearly 20 per cent this year to reach 14.4 million as it launches services to untapped markets and reaps the rewards from Qatar's economic boom. Seating capacity will rise by up to 23 per cent this year, the chief executive says.
As the economy prospers, some UAE construction professionals are migrating to the nation as Qatari builders stay on course with construction projects. With the world's third-largest gas reserves and the globe's highest per capita GDP, Qatar is expected to expand its economy by between 7 per cent and 9 per cent this year, its government has says, even as global trade is expected to decline by 2 per cent.
Playing off this prosperity, Qatar Airways will this year add seven destinations: its inaugural flight to Houston touched down at George Bush Intercontinental Airport on Monday after a journey of 15 hours and 20 minutes, with Sydney, Melbourne, Goa, Amritsar, and two yet-to-be-announced European cities to follow.
Many of the new routes will be flown using one of a dozen Boeing 777 ultra-long range aircraft that Qatar Airways will receive this year. The arrivals follow a historic buying spree over the past three years that saw the carrier order 200 aircraft, worth US$40 billion (Dh146.92bn) at list prices, including options. With $10bn being invested at New Doha International Airport and upgrades at the existing terminal, Qatar's focus on global aviation has been matched only by the UAE among Gulf countries.
The big three carriers in the region – Qatar Airways, Emirates and Etihad – are reshaping the global industry by buying ultra-long-haul aircraft and rerouting traffic between Asia and the Americas and Europe over the Gulf. After global trade slowed sharply last year, however, many airlines were forced to conserve resources to survive. Emirates, Lufthansa and Singapore Airlines took extra capacity out of the markets hardest hit by the downturn, such as in North America.
Qatar Airways is one of several Gulf carriers that is increasingly targeting the US market. The airline, which has 21 weekly services to the US, including daily services to Houston, Washington and New York, will double its US presence with services to three new cities using mid-sized aircraft. "With this kind of capacity we deploy, it's easy to fill," says Mr al Baker. The plans also take advantage of minimal competition from US operators, according to Mr Kaminski-Morrow.
US carriers have tended to serve the Middle East indirectly, through code shares and alliances, thereby leaving an open goal to the region's operators," he says, "although there have been recent efforts, by Delta and United for example, to rebuild links."
Mr al Baker says the airline will fly to South America next year, but is not giving further details. Several years ago, the carrier opened an office in Sao Paolo, Brazil, but pulled out before services were launched.
The Doha-based airline plans to double its coverage of US cities from three to six in the near future and also launch its first destination in South America next year, says Akbar al Baker, the airline's chief executive. A "major order" of aircraft is planned for the Paris Air Show this summer, he says, without disclosing details. "You'll have to wait until the air show." He also dismisses fears that the slowdown is rapidly becoming more severe.
"In my opinion this is not a crisis, this is an economic downturn which we will weather," he says. "Whenever there is an economic downturn there are opportunities. And we are very clever about those opportunities." He cites Qatar Airways's upcoming services to Goa and Amritsar in India as two markets that hold potential but have escaped the notice of other carriers.
Even as the company plans far beyond the downturn, however, Mr al Baker acknowledges the effects of the slowdown. Passenger growth this year will be the airline's lowest in 12 years, and less than the growth in new capacity.
In its February-March Financial Monitor, released this week, the International Air Transport Association (IATA) said that "passenger demand has not found a floor and is now declining at a faster rate". However, the Middle East fared better than worldwide airline performance, growing passenger traffic by 0.4 per cent compared with negative 10.1 per cent globally.
David Kaminski-Morrow, an editor at Air Transport Intelligence in London, says: "One of the main problems with the current downturn is that it is damaging the premium market, and it's the front end of the aircraft that is considered the place where profits are made. The Middle East market is arguably cushioned slightly but certain key markets – India, notably, and the cargo sector – are nevertheless a concern."
By contrast, Qatar's flag carrier believes it can increase passenger traffic by nearly 20 per cent this year to reach 14.4 million as it launches services to untapped markets and reaps the rewards from Qatar's economic boom. Seating capacity will rise by up to 23 per cent this year, the chief executive says.
As the economy prospers, some UAE construction professionals are migrating to the nation as Qatari builders stay on course with construction projects. With the world's third-largest gas reserves and the globe's highest per capita GDP, Qatar is expected to expand its economy by between 7 per cent and 9 per cent this year, its government has says, even as global trade is expected to decline by 2 per cent.
Playing off this prosperity, Qatar Airways will this year add seven destinations: its inaugural flight to Houston touched down at George Bush Intercontinental Airport on Monday after a journey of 15 hours and 20 minutes, with Sydney, Melbourne, Goa, Amritsar, and two yet-to-be-announced European cities to follow.
Many of the new routes will be flown using one of a dozen Boeing 777 ultra-long range aircraft that Qatar Airways will receive this year. The arrivals follow a historic buying spree over the past three years that saw the carrier order 200 aircraft, worth US$40 billion (Dh146.92bn) at list prices, including options. With $10bn being invested at New Doha International Airport and upgrades at the existing terminal, Qatar's focus on global aviation has been matched only by the UAE among Gulf countries.
The big three carriers in the region – Qatar Airways, Emirates and Etihad – are reshaping the global industry by buying ultra-long-haul aircraft and rerouting traffic between Asia and the Americas and Europe over the Gulf. After global trade slowed sharply last year, however, many airlines were forced to conserve resources to survive. Emirates, Lufthansa and Singapore Airlines took extra capacity out of the markets hardest hit by the downturn, such as in North America.
Qatar Airways is one of several Gulf carriers that is increasingly targeting the US market. The airline, which has 21 weekly services to the US, including daily services to Houston, Washington and New York, will double its US presence with services to three new cities using mid-sized aircraft. "With this kind of capacity we deploy, it's easy to fill," says Mr al Baker. The plans also take advantage of minimal competition from US operators, according to Mr Kaminski-Morrow.
US carriers have tended to serve the Middle East indirectly, through code shares and alliances, thereby leaving an open goal to the region's operators," he says, "although there have been recent efforts, by Delta and United for example, to rebuild links."
Mr al Baker says the airline will fly to South America next year, but is not giving further details. Several years ago, the carrier opened an office in Sao Paolo, Brazil, but pulled out before services were launched.
