According to CEO Akbar Al Baker, Qatar Airways, which routinely takes first prize in the Skytrax World Aviation Awards, will not have first-class berths on its next-generation long-haul aircraft. Al Baker said that investing in the most luxurious seat does not justify the returns, given that Qatar’s business class offering offers many of the same perks.
Why should you invest in a sub-class of an aircraft that already gives you all the comforts of first class,” Al Baker said, speaking in an exclusive hour-long interview in Istanbul on Saturday. “I don’t see the need.”
The phasing out of the first class on long-distance routes is not without strategic risks. The move runs counter to Qatar’s five-star image and an industry trend that has seen airlines from Deutsche Lufthansa AG to Qantas Airways Ltd to Air France double down on their upscale offerings. Lufthansa CEO Carsten Spohr said more leisure travelers are looking for private pleasure, and the front section of his plane has never been so full.
As for Al-Baker, the future lies in the business class, which Qatar has designated its product as “Q-suite”. That’s why there will be no first class on its next-generation Boeing 777X aircraft. These aircraft will become the largest operated by the airline once it eventually retires all 10 of its Airbus SE A380s, which still have 8 first-class seats.
Cabin classes have become more flexible over the years, with carriers squeezing premium economy class between the business and budget seat rows. First class has remained a gimmick that corporate clients limit to top executives, or that it attracts regular passengers who splurge on a once-in-a-lifetime travel experience.
Suppliers
The aviation supply chain remains a major concern for Qatar Airways, as spare parts shortages and production line backlogs have affected aircraft shipments.
Al-Baker, speaking before the annual meeting of the International Air Transport Association of about 300 airlines, said his company is shorting about 15 of the 25 it expects to take over this year — pointing to problems with its Boeing 787, Airbus 321neo and Airbus 321neo. A350 aircraft.
Boeing CEO Dave Calhoun has sought to dampen expectations of a quick fix to supply strain constraints, warning that the airline industry could face a half-decade of disruption to all-important aircraft deliveries.
“What is happening is a vicious cycle and this is the biggest challenge for the industry,” Al Baker said. “Our ambitions for growth must culminate in capacity shortages.”
Qatar Airways said it does not expect to resolve its delivery delays before the end of next year.
Australia expansion
In terms of expansion, Al Baker said, Gulf Air has its eye on Australia. Qatar Airways is bidding to expand its flights and also plans to back its new partner Virgin Australia against arch-rival Qantas. Al Baker answered with a smile when asked about an investment in Virgin Australia. While no discussions took place, he said “it depends, we’ll see”.
The carrier is looking to add additional daily service to Sydney, Perth, Melbourne and Brisbane. It currently operates a daily flight to all cities except Melbourne, which is twice a day.
Al-Baker said that Qatar Airways is confident that the expansion will be viewed positively, noting that it has continued to operate international flights to most countries during the pandemic – while many national airlines have stopped flying directly.
“I don’t think it’s a very big request for the authorities,” al-Baker said.