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MAY 2015

Week 20

Airline News

Qatar Airways strengthens U.S. presence, signs JV

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May 11th 2015

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More fuel was added to the Gulf vs. U.S. carrier dispute over alleged unfair competition last week after Qatar Airways announced three new routes to the U.S., causing an immediate backlash from Washington-based lobby group Partnership for Open & Fair Skies, Read More » which issued a statement decrying Qatar’s expansion as “yet another example of the Gulf carriers racing against the clock to dump more subsidized capacity on the U.S. and diverting passengers away from the U.S. airlines.” The organization added that “the harm from these actions is real and immediate.” To this end, Qatar will add a daily Los Angeles B777 service from January 1, 2016, followed by daily A350 operations to Boston and Atlanta from March 16 and July 1, respectively. It will also double frequency to New York’s JFK from March 1, with a second daily rotation using the A350.

Meanwhile, Qatar Airways’ chief, Akbar Al Baker, has once again reiterated his interest in India’s IndiGo, saying his carrier would be interested in acquiring a 49% stake in the profitable Rahul Bhatia/Rakesh Gangwal-founded low-cost carrier, though he added that IndiGo was not prepared to sell at this stage. Always on the lookout for expansion opportunities, Qatar Airways last week inked a “strategic joint business partnership” with Royal Air Maroc (RAM) which will see the two carriers work together on the Doha-Casablanca route, operating a total of 10 weekly flights between them. The partnership will create “a bridge” to Asia, said RAM chief, Driss Benhima, adding his carrier would also code-share on Qatar Airways’ services to Asia, while the Doha-based carrier would benefit from RAM’s large African network.

In the meantime, Al Baker urged Airbus to consider a larger variant of the A350 to compete with Boeing’s B777X-9 “from the end of the decade”, as well as upgrade the A380 with new engines as it would be “a killer” with 10-15% lower fuel burn. “This plane has very big potential but Airbus have to put their hands in their pocket and take this aircraft a step higher,” the chief said, declining to specify the number of potential follow-up orders should the manufacturer opt for a neo version. Emirates Airline boss, Sir Tim Clark, said his airline would order as many as 200 A380neos (in addition to its 140 A380ceos on order) should Airbus commit to the re-engined model. Clark said Airbus might reach a decision by June/July, in time for the Paris Air Show.

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