Qatar Airways as one of the Most Established Companies - Research Paper Example

? Aviation history of QATAR: Aviation history of Qatar Outline Introduction: 2. Qatar airways 3. Company Affairs 4. Performance 5. Conclusion Introduction: Qatar Airways, which was established on 22nd November, 1993, one of the most established company among all the other huge airline companies are concerned. The airline started its operation on 20th January, 1994, using a wet leased Boeing 767-200ER from Kuwait Airways. Initially, all the royal members of the family owned it. However, in 1997, it was again re-launched under a new management team. Presently, the Government of Qatar holds fifty percent stake of Qatar Airways and the rest is held by private investors. Currently, Qatar Airways has shown flying colors in the aviation industry and it is competing equally with the other well established airline companies. Skytrax has given Qatar Airways a five–star rating, which is also possessed by airline companies like Kingfisher Airlines, Singapore Airlines, Hainan Airlines, Asiana Airlines, Cathay Pacific and Malaysia Airlines. The headquarters of Qatar Airways is in Doha. Qatar Airways link almost hundred international destinations from its base place at Doha, using a fleet of ninety six aircrafts. During 2010, Qatar Airways has launched nine new destinations like Tokyo, Sau Paulo, Phuket, Nice, Hanoi, Copenhagen, Ankara, Barcelona, Buenos Aires, Bangalore. In the pipeline, were other destinations like Aleppo, Bucharest, Budapest, Brussels, Oslo, Montreal and Stuttgart. (Projects Middle East. (Oct. 2008). 2. Qatar Airways Qatar Airways has provided a very suitable environment for the Middle East business aviation market to flourish. Ali Al Naqbi, who is the founding chairman of the Middle East Business Aviation Association, has given extra importance to Qatar’s strategic importance to the charter jet market. Ali Al Naqbi majorly focused on the growth potential of Qatar so as to capitalize on it in order to bring about a huge development in the international aviation market. He predicted that by the year 2012, there will be a massive growth in the Middle East aviation sector where its worth will be near to one dollar billion and the yearly growth rate will be by fifteen to twenty percent. Ali Al Naqbi was very optimistic about his view and prediction as the growth in the aviation market was new in the region. He believed that a new era will begin with the growth and progress of the aviation business entity. The aviation business has covered almost forty percent of the Middle East aerospace market within about four years. Ali Al Naqbi believed that the significant gains from the aviation market will attract Qatar to join his founding organization, that is, Middle East Business Aviation Association, and serve them for further betterment in the future. But being excited on one side, he was also quite aware of the global financial crisis. He knew it very well that one day or the other, in some way, the growth in the aviation sector will be hampered due to a fall in the global financial sector. (Qatar Airways, 2010) Qatar has its own well flourished natural gas industry which acts as a catalyst to spur interest in the aviation market in order to bring in more demand. Moreover, Ali Al Naqbi reiterated that Qatar has a lot to contribute in the expansion of the aviation sector and this has encouraged the local companies to a huge extent to join the Middle East Business Aviation Association. (Qatar Airways, 2010) The services of Qatar Airways have expanded its service to Africa, Europe, Central Asia, Middle East, North America and South America. It is one of the fastest growing industries of airlines in the world. The industry consisted of fifteen thousand employees among which ten thousand employees work for the industry directly and the other five thousand employees work in the industry subsidiaries. (Qatar Airways, 2010) Qatar Airways have tried to serve all sort of satisfaction to its passengers, thereby making every ride for the passengers very comfortable. Those who want to travel in the A330 and A340 aircraft will have more luxury because of the added advantage of the live digital satellite television. In further to this, the upcoming Boeing 777-200LR aircraft plans to design a new flat bed seats in the business class. Overall, they want to satisfy their customers in all possible ways they can. Therefore Qatar Airways is among the top ten best airlines in the world. Competing with Emirates and Etihad Airways, it has secured a seventh rank in the prestigious Skytrax awards, while Dubai Airlines acquired a ninth position and Etihad Airways occupied the tenth rank in the recent Skytrax awards. For the fifth time, Qatar Airways was voted for its cabin crew to be the best in the Middle East industry as it can take 15mn passengers on board. Qatar’s flagbearer is also expanding and will operate a fleet of around 110 aircrafts by 2013, which is almost double its existing size. In2007, Qatar Airways ordered for 80 Airbus A350s, along with 60 Boeing 787s and 32 Boeing 777s. From 2010 onwards, Qatar Airways has ordered 5 of the twin deck Airbus A380 which was scheduled from then only. Not only this, the premium terminal at its hub, operated by its first class and business class passengers, had luxurious features like duty free shopping, conference rooms, nursery and play area, spa treatment rooms, sauna, jacuzzi and restaurants. (Qatar Airways, 2010) 3. Company affairs: Qatar Airways has many divisions like Qatar Aircraft catering company, Doha International Airport, Qatar Airways Holidays, United Media Int, Qatar Duty free Qatar Aviation services, Qatar Distribution Company and Qatar executive which is a corporate jet subsidiary of Qatar Airways. During 2009, Qatar Airways Airbus A340-600 conducted the world's first commercial passenger flight using a mixture of kerosene and synthetic Gas-to-Liquid fuel, produced from natural gas, on its flight from London's Gatwick Airport to Doha. The experiment's purpose was to demonstrate the viability of jet fuel made from a source not subject to rapidly fluctuating oil prices. In addition, positioning natural gas in particular as an alternative source of jet fuel is in the interests of the Qatari government. Qatar is the world's leading exporter of natural gas. However, some experts believe that GTL fuel is likely to remain a marginal choice due to an expensive production process. (Qatar Airways, 2010) 4. Performance: At the time when fuel prices shooted up, then other airlines concentrated on cost reduction schemes where they tried to cut off many routes. But Qatar Airways at that even focused on expanding its business by splashing out a series of new orders. Qatar Airways has been one of the big buyers in the Farnborough International Air Show where it signed multi-million dollar contracts in order to make its national carrier more strong so that it can compete well with the other springing up budget airlines in the industry. It also had an understanding of purchasing six Airbus A321 aircraft also. The airlines chief executive officer said that among these six airbuses four airbuses will be for short regional routes while the other two will remain to be optional. He also said that the Qatar Airways is bucking the trend with a confidence of having a very bright future ahead. By 2013, the airline plans to have more than hundred aircrafts including the new twin deck Airbus A380 super jumbo. He also said that if the low cost budgeted companies try to give them a competition, then they will also chalk out their low cost budget strategy within few days. He added that he is in a position to launch a new lost cost carrier so that it will be easier for aircrafts to land in the most painless way. Qatar Airways went on giving huge orders which built up a rivalry in the aviation sector.( Projects Middle East. 2008). In 2015, when the international airport in Doha will open up with 7.5 dollar billion facility which has a capacity of handling of handling 50m passengers and 2m tons cargo per year. This will put Qatar in the second tier among the Gulf airports with Dubai’s new international aviation centre which is capable of processing 120m passengers and 12m tons of freight. While the new airport has obviously been designed with a view to the national carrier increasing passenger numbers, Qatar also hopes other international airlines will base their regional operations at NDIA. With this in mind, the airport has been designed to include state-of-the-art maintenance facilities, along with catering and support services far beyond the needs of Qatar Airways. Again though, it is the UAE that could provide the main stumbling block to these aspirations being achieved. While Qatar is spending billions, Dubai has committed at least 82bn dollar to its new aviation hub, which will combine the world’s largest airport with one of the industry’s biggest repair and maintenance centers. Qatar may struggle to match the high spending of the UAE in trying to develop an aviation industry. Instead it will have to prove that it can beat its regional rivals through quality of service to win over passengers and airline companies in order to reach its potential. While the new airport has obviously been designed with a view to the national carrier increasing passenger numbers, Qatar also hopes other international airlines will base their regional operations at NDIA. With this in mind, the airport has been designed to include state-of-the-art maintenance facilities, along with catering and support services far beyond the needs of Qatar Airways. Again though, it is the UAE that could provide the main stumbling block to these aspirations being achieved. While Qatar is spending billions, Dubai has committed at least $82bn to its new aviation hub, which will combine the world’s largest airport with one of the industry’s biggest repair and maintenance centers. Qatar may struggle to match the high spending of the UAE in trying to develop an aviation industry. Instead it will have to prove that it can beat its regional rivals through quality of service to win over passengers and airline companies in order to reach its potential. (Projects Middle East. 2008). 5. Conclusion: Qatar Airways was serving 99 destinations while Qatar Airways Cargo serves 19 destinations in 55 countries across Africa, Asia, Europe, North America, South America and Oceania from its hub at Doha international airport. It is one of the very rare airlines which fly to all six permanently inhabited continents. From October 2010, Qatar Airways will start new routes to Asia and Europe. Currently it flies to Phuket via Kuala Lumpur, Hanoi via Bangkok, as well as Nice via Milan. In Europe there are some destinations which were recently launched. They are Bucharest, four times in a week, Budapest operating via Bucharest, Brussels, five times a week, and Stuggart, four times in a week. Qatar Airways has also announced that it will launch flights to Venice and also some non stop flights from Doha to Montreal which will be scheduled three times in a week. References: 1. Projects Middle East. (2008). Qatar Airways on top 10 list. Retrieved from http://www.projectsmiddleeast.com/read.asp?id=3950&CategID=61 on 12th March, 2010. 2. Projects Middle East. (Feb. 2008). While other international airlines look at cutting routes, Qatar Airways has splashed out on a series of new aircraft orders. Retrieved from http://www.projectsmiddleeast.com/read.asp?id=3950&CategID=61 on 12th March, 2010. 3. Projects Middle East. (Oct. 2008). Qatar has ideal environment for aviation sector growth: Expert. Retrieved from www.projectsmiddleeast.com/read.asp?id=4297&CategID=61 on 12th March, 2010. 4. Qatar Airways. (2010). About Us. Retrieved from www.qatarairways.com on 12th March, 2010. Read More