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Al-Baker: QR LLC Could Be Ready Within 90 Days!  
User currently offlineQatarA340 From Qatar, joined May 2006, 1883 posts, RR: 10
Posted (5 years 7 months 2 weeks 3 days 15 hours ago) and read 3154 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

What do you guys think?


لا اله الا الله محمد رسول الله
9 replies: All unread, jump to last
 
User currently offlineDirectorguy From Egypt, joined Jul 2008, 1708 posts, RR: 11
Reply 1, posted (5 years 7 months 2 weeks 3 days 14 hours ago) and read 3069 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!


User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17823 posts, RR: 46
Reply 2, posted (5 years 7 months 2 weeks 3 days 14 hours ago) and read 3059 times:



Quoting QatarA340 (Thread starter):
What do you guys think?

Oh good, just what the world needs, more ego driven airline capacity in the Middle East Yeah sure



E pur si muove -Galileo
User currently offlineQantas777 From United States of America, joined Aug 2000, 484 posts, RR: 1
Reply 3, posted (5 years 7 months 2 weeks 3 days 14 hours ago) and read 3040 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.

User currently offlineQatarA340 From Qatar, joined May 2006, 1883 posts, RR: 10
Reply 4, posted (5 years 7 months 2 weeks 2 days 13 hours ago) and read 2719 times:

There are rumours that QR already has one such aircraft in a LCC configuration, and I assume its the A321 which was leased by QR.


لا اله الا الله محمد رسول الله
User currently offlineYOWza From Canada, joined Jul 2005, 4917 posts, RR: 15
Reply 5, posted (5 years 7 months 2 weeks 2 days 13 hours ago) and read 2696 times:



Quoting QatarA340 (Thread starter):

I think that following the footsteps of EK in this case is a bad idea.

Agree. It's premature.

Quoting QatarA340 (Thread starter):
Qatar does not need a low-cost carrier.

Not yet but given all the things going on in DOH the time *might* be near.

Quoting QatarA340 (Thread starter):
1. Over-conjestion at Doha Airport

Couldn't agree more DOH is a disaster.

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.


YOWza



12A whenever possible.
User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17823 posts, RR: 46
Reply 6, posted (5 years 7 months 2 weeks 2 days 11 hours ago) and read 2631 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?



E pur si muove -Galileo
User currently offlineYOWza From Canada, joined Jul 2005, 4917 posts, RR: 15
Reply 7, posted (5 years 7 months 2 weeks 2 days 9 hours ago) and read 2565 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.

YOWza



12A whenever possible.
User currently offlineJasondn From South Africa, joined Nov 2007, 207 posts, RR: 1
Reply 8, posted (5 years 7 months 2 weeks 2 days 9 hours ago) and read 2537 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.

User currently offlineAviationbuff From India, joined Mar 2008, 1428 posts, RR: 3
Reply 9, posted (5 years 7 months 2 weeks 1 day 13 hours ago) and read 2345 times:

As discussed earlier that QR may place a large order at Paris Air Show, if these are their plans then the order will be for A320's.

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