QatarA340 From Qatar, joined May 2006, 1599 posts, RR: 7 Posted (4 years 1 week 5 days 18 hours ago) and read 2434 times:
Quote: Qatar Airways chief executive officer Akbar Al Baker has said that the carrier has 'a complete structure in place' to launch a budget airline within 90 days if the carrier's market share is eroded by any competitor, claiming to have already flown a low cost plane in the guise of a 'full-service' plane. Though no names were mentioned the statement is believed to be a reference to the launch of Emirates-backed FlyDubai.
I think that following the footsteps of EK in this case is a bad idea. Qatar does not need a low-cost carrier. QR should instead focus on its premium status as a five-star airline. The thing is, the Farnbourough airshow is coming up and QR have confirmed aircraft orders.
The announcement of a LCC can be made there. I would assume if they want to launch a LCC, they could just take a few QR A320s and possible just make it into a LCC.
Negative Points:
1. Over-conjestion at Doha Airport
2. Possibly cut a share of QR's network, ironic because that is the reason QR wanted to set up a LCC.
3. Possible new bilateral aviation treaties have to be placed
4. over-saturation in routes
5. Might end up like Gulf Traveller
6. Might need more start-up costs due to the formation of a new company
Positive Points:
1. Aircraft and crew are already there
2. They could convert existing routes to LCC only routes (ie. Gulf Traveller)
3. More income since LCC business stategy is different
4. Competiton against Air Arabia, Jazeera Airways, Bahrain Air, Fly Dubai
5. NDIA is able to host a new national airline
Directorguy From Egypt, joined Jul 2008, 1569 posts, RR: 12 Reply 1, posted (4 years 1 week 5 days 17 hours ago) and read 2349 times:
I'd already heard about this ages ago, but pleased to know that it wasn't a one-off comment, and that there is a general commitment to see this through.
1. Of course, a QR LCC should lower fares even more. Over-supply would eventually dilute yields for everyone in the region, but just look at the prices EK, QR, EY and GF charge on the intra-Gulf routes. It's sometimes cheap to buy a roundtrip Dubai-Bahrain-London-Bahrain-Dubai on GF than to buy Dubai-Bahrain roundtrip.
There are specific points that could be made profitable ex. DOH, but there tends to be a general overlap. We're taking about a region whose airlines have diversified and expanded so much it's amazing.
Take routes like Doha-Nagpur. Didn't work when a mainline QR A320 went there, would work with with an LCC route.
Really interested in seeing where this goes. Fingers crossed!
MaverickM11 From United States of America, joined Apr 2000, 15720 posts, RR: 48 Reply 2, posted (4 years 1 week 5 days 17 hours ago) and read 2339 times:
Qantas777 From United States of America, joined Aug 2000, 484 posts, RR: 1 Reply 3, posted (4 years 1 week 5 days 17 hours ago) and read 2320 times:
The goal is to kick the competition in the face in the GCC area. It may lose a ton, but hopefully it will kick out the absurd losers in the market like Bahrain air etc etc.
Quoting QatarA340 (Thread starter): 2. Possibly cut a share of QR's network, ironic because that is the reason QR wanted to set up a LCC.
Well better to capture some revenue through an LCC than lose it altogether.
Quoting QatarA340 (Thread starter): 3. Possible new bilateral aviation treaties have to be placed
This will be tricky since some of the target markets for such an LCC are already flush with capacity.
Quoting QatarA340 (Thread starter): 6. Might need more start-up costs due to the formation of a new company
Not really. Some branding etc but nothing huge.
Quoting QatarA340 (Thread starter): 2. They could convert existing routes to LCC only routes (ie. Gulf Traveller)
KTM is screaming for this. Ever since the KTM-KUL leg was dropped it's become a "laborer" only run.
Quoting MaverickM11 (Reply 2): Oh good, just what the world needs, more ego driven airline capacity in the Middle East Yeah sure
Feel free not to chime in since you have nothing to contribute. This LCC is a contingency not a sure thing so you're disdainful comment is meaningless and off base.
MaverickM11 From United States of America, joined Apr 2000, 15720 posts, RR: 48 Reply 6, posted (4 years 1 week 4 days 14 hours ago) and read 1911 times:
Quoting YOWza (Reply 5): Feel free not to chime in since you have nothing to contribute.
You said the exact same thing except for the *ego* part, and Al Baker is nothing but an ego trying to copy EK, another ego driven carrier. What could DOH possibly need with an LCC, when it's probably 70+% flow traffic and overserved already?
YOWza From Canada, joined Jul 2005, 4781 posts, RR: 17 Reply 7, posted (4 years 1 week 4 days 12 hours ago) and read 1845 times:
Quoting MaverickM11 (Reply 6): You said the exact same thing except for the *ego* part, and Al Baker is nothing but an ego trying to copy EK, another ego driven carrier. What could DOH possibly need with an LCC, when it's probably 70+% flow traffic and overserved already?
By virtue of throwing in more than just a one line rant this 2nd post of yours is way better than the first.
This plan is a contingency it is NOT set in stone and is nowhere near 100%. I don't know how much simpler I can make this for you... Based on periodic analysis this will only happen****if**** needed.
As far as the need for a DOH based LCC goes you should be aware that the armies of laborers in the GCC are booked and shipped around by their respective employment agencies. These agencies pay shitty wages and are always looking to cut costs, one means of doing that is mass booking of tickets and obviously LCCs are appealing. Take DOH-KTM for example this could certainly support an LCC.
Beyond that inter-continental LCC ops are changing things a lot so there may very well be scope for growth with an LCC. Consider that it is now possible to get from the EU to Asia, Africa and even Australia flying only LCCs. Granted there will be more stops but this is something to consider. G9 can get you from Athens to Kathmandu in one hop. Surely Italy to Goa (hugely popular with Italian back packers not willing to pay the QR premium) via DOH could work? There are countless other examples...
I agree there is a lot of ego in the GCC but to simply write off every single venture as an ego driven action is just ridiculous.
Jasondn From South Africa, joined Nov 2007, 190 posts, RR: 1 Reply 8, posted (4 years 1 week 4 days 11 hours ago) and read 1817 times:
I read an airticle in the Qatar Airways magazine and Al Baker was saying that the A321 will be used for high density seating and they can be ready within 90 days to compete with FlyDubai. He also mention in the article that there are more A321 coming.
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