Qatar Airways To Place Big Aircraft Order

Qatar Airways is nearing a massive order for wide-body aircraft, with details expected to be announced in a matter of weeks.

The airline’s CEO, Badr Mohammed Al-Meer, spoke with Bloomberg and discussed the new order, which will be pivotal for future growth and renewal efforts.

Qatar Airways states that the new aircraft order is scheduled for May, as the airline continues to prepare for the future and analyse financials, among other things.

Talk of the airline’s purchase of new commercial aircraft follows March reporting, which suggested that ongoing analysis was being conducted to determine the best direction for the widebody deal.

While the airline has a healthy backlog of aircraft, which is only expected to grow in the coming years, the belief is that it still isn’t enough aircraft to cater to the strong levels of demand that’ll be witnessed in the future.

Before March, Qatar Airways had already submitted RFPs or Request for Proposals towards leading planemakers Airbus and Boeing to understand what could be offered based on their requirements.

For the moment, there has been no confirmation on the direction of this deal or subtle hints about the aircraft likely to be involved, but all options are likely to be on the table considering the airline’s strong fleet.

Qatar Airways doesn’t rely on just one next-generation aircraft type; instead, it operates the A350 family, the 787 series, and has placed substantial orders for the upcoming Boeing 777x, which remains uncertified.

As a result, for Qatar Airways, the opportunity exists to strengthen its commitment to one of these three programs, two of them, or all three equally.

For the carrier, the direction will come down to the requirement for capacity and where these jets will be deployed to carve out a perfect balance.

Factors that must also be considered are the impact of political tensions stemming from the United States, which have put added risk on airlines outside of this country attempting to take delivery of next-generation jets from Boeing.

Why Qatar Airways Is Ordering Aircraft

A new aircraft order from Qatar Airways is being made for several reasons.

Due to its geographical positioning and business model, this carrier faces intense competition from giants such as Emirates and Etihad Airways.

The airlines mentioned above are global carriers, and both are in the process of modernising their fleets to advance their market share and erode their competitors’ presence in the space, including Qatar Airways.

The ongoing renewal enhances efficiency, reduces costs, and, for Qatar, hopes to improve customer satisfaction. Qatar Airways must maintain its competitive edge to avoid losing valuable market share.

Furthermore, widebody aircraft are crucial, as Qatar relies on long-haul connectivity through its Doha hub. To sustain its market share, Qatar must ensure it has enough aircraft flying daily and in its backlog for deliveries into the 2030s.

Beyond the Gulf carriers, Turkish Airlines presents another challenge. With its evolving hub, this airline is aggressively expanding and adopting a strategy that puts further pressure on companies such as Qatar.

To fend off these competitive pressures, Qatar Airways has begun making strategic investments in airlines, while also seeking to secure its focus with new aircraft purchases, such as those currently being developed.