News
Qatar Airways to announce major wide body order
October 7th 2016
Doha-headquartered Qatar Airways is expected to announce an order for at least 30 Boeing wide body aircraft after the airline and the manufacturer sent out invitations for a press event in Washington, D.C., this Friday. Read More »
Last week, Bloomberg sources said the carrier would purchase additional B787 Dreamliners and B777-300ERs, with a list value of $6.7 billion. Large orders typically get discounted.
Boeing seemed to be the likely winner as Qatar Airways’ relationship with Airbus continues to be “very strained”, according to Qatar’s CEO, Akbar Al Baker, after several contentious issues developed with the carrier’s A320neo and A350 orders.
If signed off, the order would be Boeing’s biggest wide body win this year and a provide a lifeline to its stalling current-generation B777 production line, ahead of the launch of the B777X from 2020. Boeing CEO, Dennis Muilenburg, last month said the Chicago-headquartered manufacturer needed to sell 40-50 B777s a year to maintain the current output of seven a month. Boeing has sold eight B777s this year.
Separately, Qatar Airways and IAG controlled British Airways (BA), are deepening their ties from October 30 with a new code and revenue sharing agreement that covers the carriers’ combined seven daily nonstop UK-Qatar flights and countless connecting services to Africa, Asia, Europe and the Middle East.
“We are delighted to announce this joint business with Qatar Airways, which is one of the world’s premier airlines. This agreement will allow us to provide easier journeys with better aligned schedules, more frequencies and improved flight transfers. This partnership follows the commercial agreement with IAG Cargo signed two years ago and enhances our relationship with Qatar Airways further,” said the IAG CEO, Willie Walsh. Qatar Airways holds a 20.01% equity in BA.
In related news, BA made the headlines across the world this week when it announced it would stop providing free snacks and food in economy class on intra-European and domestic flights. It raised the question: what differentiates BA short-haul from low-cost carriers Ryanair and easyJet?
