News
Iran orders 118 aircraft to become “the envy of the region”, Qatar CEO rejects Gulf consolidation
January 29th 2016
The Iranian government this week struck a deal with Airbus for 118 new aircraft, including 21 A320ceos, 24 A320neos, 27 A330ceos, 18 A330-900neos, 16 A350-1000s and twelve A380s for Iran Air. Read More »
The deal comprises pilot and maintenance training and support services to help entry into service and efficient operations of the aircraft, Airbus said. Iran and Airbus also signed a co-operation agreement covering support for the development of Iran’s aviation infrastructure and operations, including air traffic management, airports and on ground training. "Today’s announcement is the start of re-establishing our civil aviation sector to become the envy of the region. Along with partners like Airbus we’ll ensure the highest world standards,” said Iran Air chairman and CEO, Farhad Parvaresh.
Iran has been earmarked for rapid aviation growth after international sanctions against Tehran, in force for 37 years, were lifted on January 16. Iran has some 250 commercial aircraft. The sanctions have made a significant proportion of the airplanes unserviceable with many aircraft grounded because of a lack of parts needed to keep them flying.
Long-haul LCC, AirAsia X said on Monday it was looking at resuming flights to the country. "We flew to Tehran in the past, but had to stop due to sanctions. We are looking to come back and are exploring it again," said AirAsia X CEO, Benyamin Bin Ismail. “Tony [Fernandes] sees markets like this as an opportunity. I think Iran is going to be massive for us".
Further south, Qatar Airways CEO, Akbar Al Baker, said at the Bahrain International Air Show that he did not support consolidation of the Gulf “Big Three” – Emirates Airline, Etihad Airways and Qatar Airways. He also rejected any need for the region to join the trend for mergers being played out in the world, particularly in the U.S.
"I don't agree with consolidation. Its always done to extract capacity and jack up prices," the outspoken Al Baker said.
Qatar Airways plans to make more investments in other carriers in 2016. “We are looking at many airlines,” the airline boss said, while declining to identify potential targets. “Either they will be successful airlines or they will be airlines where we see there is high potential and that potential is not being properly exercised,” he said.
The state-owned carrier acquired 10% of British Airways parent, IAG Group last year, and “is very interested” in increasing its holding, he said. Royal Air Maroc (RAM) and India’s IndiGo Airlines are airlines previously suggested to have attracted Al Baker’s attention.
Investing extensively in other carriers would bring Qatar Airways closer to a strategy pursued by neighbouring Etihad Airways, which bought into carriers in several regions. Etihad is said to be in final talks for a significant holding in Malta’s flag carrier, Air Malta.
Qatar Airways last week celebrated the first anniversary of its A350 operations, now rostered to four destinations – Frankfurt, Munich, Philadelphia and Singapore. Qatar Airways was the launch customer for the A350.
The Doha-based carrier was scheduled to accept its first A320neo by December last year, but faced delays due to the operational shortcomings of the new Pratt & Whitney PW1100G geared turbofan engine, which affected turnaround times as the engine was started cold. Last week, Lufthansa became the first carrier to receive the neo.
“We need an engine that will withstand the rigorous climate conditions,” Al Baker said, and added it would be several more months before Qatar Airways received its first neo. “It’s extremely important for us to take delivery of this airplane because we’re short of capacity,” he said. The neo delivers 15% fuel-savings over the A320ceo, increasing to 20% by 2020.
Qatar Airways has announced significant expansion across Eastern Europe with the start of the IATA summer timetable from April 1, with the majority of the four to five hour routes earmarked for the A320neo.
On long-haul growth, a Bloomberg report this week, citing Al Baker, said Qatar Airways would launch flights to Auckland and Santiago this year with B777-200LR aircraft. Emirates has daily flights from Brisbane, Melbourne and Sydney to Auckland, but no service to Chile - yet.
Earlier this month, Qatar launched a daily service to Los Angeles, its eighth destination in the U.S., and it will commence Doha- Boston from March 16, Atlanta from June 1 and a second daily flight to New York's JFK in April. Talking to U.S. media at the Los Angeles launch, Al Baker said he planned for two more U.S. destinations in 2016.
In neighbouring Bahrain, Gulf Air last week confirmed an order conversion for 29 A320neo family jets and 16 B787-9s only days before its deputy CEO handed in his resignation. (see PEOPLE).
Saudi Arabian LCC, Flynas, is talking to Airbus, Boeing and Bombardier about a potential order for 100 new aircraft, after it posted a 2015 profit for the first time in its nine-year history. The Riyadh-headquartered airline is considering 60 aircraft in the next five years, with options for 40 more, Flynas CEO, Paul Byrne, said last week in Bahrain. He added he was considering the A320neo, B737 MAX 8 and Bombardier CS300 and expected to place an order later this year.
Saudi Arabia, with a population of 30 million, is lifting restrictions in its travel market. It is in the process of licensing two new operators, Saudi Gulf Air and Al Maha Airways, a Qatar Airways subsidiary.
Further south, Oman Air’s network and fleet expansion will continue. Two more B787-8s and four B737-800s will join its fleet in 2016. From July, it will start service to China – a four-weekly rotation to Guangzhou – while frequencies to India will be increased. The daily Muscat-Heathrow service will be doubled in 2016 and Muscat-Paris will go daily. Oman Air plans its North America debut in 2018, with services to New York.
