CASE STUDY NO.

2: EMIRATES vs QATAR AIR

Emirates: Introduction
Emirates is an airline based in Dubai, United Arab Emirates. The airline is a subsidiary of The
Emirates Group, which is wholly owned by the government of Dubai's Investment Corporation of
Dubai. It is the largest airline in the Middle East, operating nearly 3,400 flights per week from its
hub at Dubai International Airport, to more than 133 cities in 74 countries across six continents.
Cargo activities are undertaken by the Emirates Group's Emirates SkyCargo division.
The airline ranks among the top 10 carriers worldwide in terms of passenger kilometres, and
has become the largest airline in the Middle East in terms of revenue, fleet size, and
passengers carried as of 2007. In 2012 the airline was the fourth-largest airline in the world in
terms of international passengers carried and scheduled passenger-kilometres flown.
[9]
The
airline was the third-largest in terms of scheduled freight tonne-kilometres flown. The company
also operates four of the world's longest non-stop commercial flights from Dubai to Los
Angeles, San Francisco, Dallas/Fort Worth, and Houston.

Origins: 19851992
During the mid-1980s, Gulf Air began to cut back its services to Dubai. As a result Emirates was
conceived in March 1985 with backing from Dubai's royal family, with Pakistan International
Airlines providing two of the airline's first aircraft on wet-lease. It was required to operate
independent of government subsidies, apart from $10 million in start-up capital. The airline
became headed by Ahmed bin Saeed Al Maktoum, the airline's present chairman. In the years
following its founding, the airline expanded both its fleet and its destinations. In October 2008,
Emirates moved all operations at Dubai International Airport to Terminal 3 to sustain its rapid
expansion and growth plans.

Incorporation and growth: 19931999

By the early 1990s, Emirates was among the world's fastest growing airlines; revenue increased
approximately US$100 million each year, approaching US$500 million in the year 1993. The
airline carried 1.6 million passengers and 68,000 tons of cargo and in the same year,
respectively.
With the advent of the Gulf War, business increased for Emirates as the war kept other airlines
out of the area; it was the only airline to continue flying in the last ten days of the war. Following
the conflicts, a total of 92 air carriers were flying to markets internationally and Emirates faced
intense competition at its home base. It carried about three million passengers a year to Dubai
International Airport in the mid-1990s. Emirates continued to expand during the late 1990s. The
growing cargo business accounted for 16 percent of the airline's total revenues.
Emirates started offering round-the-world services from autumn 1993, after a partnership was
established with US Airways. It previously had co-operation agreements with Cyprus Airways.
By 1995, the airline expanded the fleet to six Airbus A300s and eight Airbus A310s and built the
network up to cover 37 destinations in 30 countries. Then by 1996, the airline received its first
Boeing 777200 aircraft, and these were followed shortly afterwards by six Boeing 777-200ERs.
The arrival of the 777 allowed Emirates to continue its Singapore service onwards to Melbourne
commencing in 1996 which would become a very profitable route for Emirates and would see
more new destinations added in Australia. In 1998 Emirates Sky Cargo was launched. Although
the Emirates had always provided a cargo service using capacity within its passenger aircraft
this was now expanded with an aircraft, crew, maintenance and insurance lease agreed
with Atlas Air initially for a single Boeing 747200 freighter.
In May 1998, Emirates paid the Government of Sri Lanka US$70 million for a 43.6% stake
in SriLankan Airlines (then known as Air Lanka). As part of the deal, Emirates received a 10-
year contract to manage SriLankan. In January 2008, Emirates announced that it would end the
management contract, effective April 2008. Emirates subsequently sold its stake in the airline to
the Government of Sri Lanka, in an estimated US$150 million deal that was finalized in 2010,
thus ending any affiliation the two airlines had with each other. On 9 November 2013, Emirates
airline unveiled it first light sport aircraft to the world.
Modern history: 2000present
In 2000, Emirates made an order for twenty five Boeing 777-300s, eight Airbus A340-600s,
three Airbus A330-200s and twenty-two of the double deck A3XXs (later renamed A380).
Towards the end of the year, Emirates was planning to start long-haul services to the East
Coast and West Coast of the United States, as well as non-stop flights to Australia and Brazil.
During 2002, Emirates passenger figures increased 18% to over 6.8 million against the previous
year.
The financial year 200102 would prove to be a very difficult year for Emirates and one of the
toughest for the airline. Initially sales were affected by a recession and later influenced by
the bombing of Colombo Airport. The bombing destroyed three of SriLankan Airlines' twelve
aircraft and also damaged three other aircraft. A few months later, the September 11 attacks in
New York saw thousands of cancellations and deferments of travel plans. Emirates needed to
find funds for a spike in its multi-billion dollar insurance cover due to the events. Seat factors fell
considerably and profitability disappeared. The airline announced a recruitment freeze, but did
not make any redundancies. The airline also reduced flight frequencies to other destinations.
The unstable situation in the region, however, benefited Emirates as international airlines cut
flights to Dubai and lowering competition.
At the 2003 Paris Air Show, Emirates signed an order for 71 aircraft at a cost of US$19 billion.
The order included firm purchase orders for a further 21 Airbus A380-800s and lease orders for
two A380-800s. Emirates also announced operating lease orders for 26 Boeing 777-300ERs.
In 2004, Emirates began flying non-stop to New York's John F. Kennedy International
Airport using their new Airbus A340-500. These flights meant the resumption of non-stop air
services between the United Arab Emirates and the United States, after Delta Air Lines's flights
since 2001, terminated later and restarted again in 2007. In the same year, Emirates signed
a 100 million deal with English Premier League football team Arsenal, which includes naming
rights to its new stadium for 15 years and shirt sponsorship for eight years, starting from the
2006/07 season. In 2005, Emirates ordered 42 Boeing 777s in a deal worth $9.7 billion, the
largest Boeing 777 order in history.
Emirates has been steadily capturing the traffic from South Asia to North America, allowing
passengers to bypass the traditional hubs of London Heathrow, Frankfurt Airport, and Paris-
Charles de Gaulle Airport; the home bases of British Airways, Lufthansa, and Air France,
respectively, with a transit stop at Dubai International Airport instead. South Asia has remained
an important region for the Emirates network. Pakistan was the first country to receive flights
and since then, Emirates operates to 5 destinations in the country. India was the second country
to receive flights from Emirates, and continues to expand an extensive network in India.
Emirates is the largest airline operating internationally in India and operates over 185 flights a
week across 10 cities. Similarly, Emirates competes with British Airways, Cathay
Pacific, Malaysia Airlines, Qantas, Philippine Airlines, Singapore Airlines, Thai Airways
International, Middle Eastern rivals Etihad Airways, Saudia and Qatar Airways, and other
airlines on the lucrative London to Sydney Kangaroo Route.
In 2007, Emirates made an order worth over $34.9 billion, at the Dubai Air Show. The airline
signed contracts for 120 Airbus A350s, 11 A380s and 12 Boeing 777-300ERs. By opening
flights to So Paulo in 2007, Emirates began the first non-stop flight between the Middle East
and South America; it also began operations of its $120 million Flight Catering Centre at Dubai
Airport.
In 2009, Emirates became the worlds largest operator of the Boeing 777 with the delivery of the
78th plane. In 2010, at the Farnborough Airshow, the airline placed an order for 30 Boeing 777s,
worth $9.1 billion, bringing total spending for aircraft in the year to over $25 billion. In 2011, at
the Dubai Airshow, Emirates placed another order for another 50 777s, worth about $18 billion.
The growth of Emirates has drawn a lot of criticism from carriers like Lufthansa and Air Canada,
who claim Emirates has unfair advantages. Lufthansa has continuously lobbied the German
government to limit the expansion of Emirates into Germany, and hasn't allowed Emirates to
begin operations to Berlin and Stuttgart since 2004.
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Similarly, Air Canada has objected to any
expansion into Canada from Emirates. The dispute has received attention from the
governments of the UAE and Canada and despite many discussions from both governments,
Emirates has not been given more landing rights in Canada, and has been denied expansion
to Calgary and Vancouver.
On 6 September 2012, it was announced that Emirates and Qantas had signed a 10-year
agreement to set up a major alliance, which would see Qantas move its hub for its European
flights from Singapore to Dubai Airport and would see Qantas end its existing 17-year revenue-
sharing agreement with British Airways on the services between Australia and Britain. Emirates
will also seek to use the alliance to increase the number of its passengers flying on its routes to
other European destinations, and Emirates passengers will also be able to use the Qantas
Australian domestic network of more than 50 destinations. Qantas will fly daily Airbus A380
services from both Sydney and Melbourne to London via Dubai, meaning that together the two
airlines will be providing 98 weekly flights between Australia and the Emirates hub. It will also
result in Qantas becoming the only other airline operating at Terminal 3 at Dubai International
Airport. The airlines will align their frequent-flyer programs and Emirates will add a new level to
match the Qantas platinum level. As of August 2013, the partnership between the two airlines
includes code-sharing, aligned fares and frequent flyer benefits for passengers, as well as the
latest opening of a joint New Zealand network on August 14.
In the 2013 Dubai Air Show, Emirates made history in Aviation by single-handedly pushing
forward with an order of 150 Boeing 777X, 50 Airbus A380 totalling the estimated value to $166
billion. The deliveries of the 777X are scheduled to start in 2020, and will take us to 2025 and
beyond - replacing older aircraft and paving way for future growth said Emirates Chairman and
CEO Sheikh Ahmed Bin Saeed Al Maktoum. The airline announced that it plans to move all
operations to Dubai World Central - Al Maktoum International Airport sometime after 2020 when
the first phase of the airport is completed.
Aircrafts
Emirates announced an order in April 2000 for the Airbus A3XX (later named Airbus A380), the
largest civil aircraft ever built. The deal consisted of five Airbus A380sand two Airbus A380Fs.
The deal was confirmed on 4 November 2001, when Emirates announced orders for 15 more
A380-800s. An additional order 21 A380-800s was placed two years later. In April 2006,
Emirates replaced its order for the two variants with an order for two A380-800s. In 2007,
Emirates ordered 15 A380-800s, bringing the total number ordered to 58. According to
Emirates, the aircraft would allow the airline to maximize its use of scarce takeoff and landing
slots at crowded airports such as London Heathrow. In 2005, the first A380-800 in full
Emirates livery was displayed at the Dubai Airshow.
On 20 November 2005, Emirates ordered 42 Boeing 777s, to help with its expansion. This order
came one day after Airbus announced that the A380-800 would be delayed by another six
months. A third delay was announced on 3 October 2006, pushing the initial delivery of the first
A380-800 to October 2007. The announcement was met with anger by Emirates' President Tim
Clark, who threatened to cancel their Airbus order as it was affecting the airline's expansion
plan, saying that "It's very serious. This will do us serious damage." In total as of April
2008, Airbus paid as much as $110 million during 2007 in compensation for the late delivery of
the A380-800 to Emirates for the delays. During the same year, on 1 August, Emirates flew its
first A380-800 flight, from Dubai to New York City.
In February 2009, Emirates raised many issues concerning its A380. Emirates informed Airbus
officials about heat-damaged power cables, defective engines and numerous malfunctions,
many reportedly caused by the two showers installed in the aircraft.
At the 2010 Berlin Air Show, Emirates ordered an additional 32 A380s worth US$11.5 billion.
Emirates expected all of its 90 A380s ordered to be delivered by 2017. None of the additional 32
jets are intended to replace existing A380s; although Emirates received its first A380 in 2008, it
does not expect to retire these early airframes before 2020.
In 2010, Emirates said they planned to operate over 120 Airbus A380s when new airport space
is available. The target implied a future Emirates order for 30 of the world's largest airliner, worth
US$10 billion at list prices, at an unspecified date.
On 17 November 2013, Emirates announced at a press conference at the Dubai Airshow that
they were placing an order for an additional 50 Airbus A380-800s, bringing the overall order
total to 140.
Terminal 3
Dubai International Airport's Terminal 3 was built exclusively for the use of Emirates at a cost of
$4.5 billion and officially opened 14 October 2008. Terminal 3 is the second largest building in
the world by floor space, with over 1,713,000 m
2
(423 acres) of space. The Terminal has annual
capacity of 43 million passengers. The new concourse 3 opened on 2 January 2013 and is built
exclusively for the A380-800.
In May 2011, Paul Griffiths, chief executive of Dubai Airports revealed that Emirates will
eventually take over the operation of Concourse 1, along with Concourses 2 and 3 which it will
already be operating in 2018. Emirates airline, which normally makes the headlines for buying
aircraft, has decided to build one and today unveiled the light sport aircraft to the world.
Corporate Strategy
The airline is a subsidiary of The Emirates Group, which itself is a subsidiary of the Dubai
government's investment company, Investment Corporation of Dubai. The airline has recorded
a profit every year, except the second, and growth has never fallen below 20% a year. In its first
11 years, it doubled in size every 3.5 years, and has every four years since.
In 2010 Emirates paid dividends worth AED956 million (US$260 million), compared to
AED2.9 billion (US$793 million) in 2009. The government has received Dhs7.1 billion from
Emirates since dividends started being paid in 1999 for having provided an initial start-up capital
of US$10 million and an additional investment of about US$80 million at the time of the airline's
inception, the Dubai government is the sole owner of the company. However, it does not put any
new money into it, nor does it interfere with running the airline.
Diversification
Emirates has diversified into related industries and sectors, including airport services,
engineering, hospitality services, catering, and tour operator operations. Emirates has seven
subsidiaries and its parent company has more than 50. The company employed a total of
38,797 staff at the end of the fiscal year on 31 March 2011. Its parent company, The Emirates
Group, employed a total of 49,950 employees of which 10,785 were cabin crew, 2,237 were
flight deck crew, 1,904 were in engineering, and 9,084 were listed as other.
The primary focus for Emirates and its employees is to deliver superior customer service. In
turn, Emirates provides its employees with benefits such as comprehensive health plans and
paid maternity and sick leave. Another strategy employed by Emirates is to use profit sharing
and merit pay as part of their competency based approach to performance management.
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Environmental record
The airline claims to have lower emissions than other airlines due to its fleet which has an
average fuel burn of less than four liters for every 100 passenger kilometers it flies. The cargo
division of the airline uses a similar hub-and-spoke network of operations.
Fleet efficiency
Emirates has stated that its versions of the A380-800 will offer fuel economy of 3.1 liters per
100 passenger km. Emirates A380-800s also feature the Engine Alliance GP7200 engines,
which save 500,000 liters of fuel per aircraft per year.
The company uses a program called "Flextracks". The technology is used to plan and
optimize routes efficiency and load factor. Passenger load factors were 81.2% in the 6
months to September 2010.
Emirates has invested in a program called "tailored arrivals". This allows air traffic control to
uplink to aircraft en route. It first determines the speed and flight profile from the air onto the
runway, this allows the crew to accept and fly a continuous descent profile, saving fuel and
emissions
Financial and operational performance
In the financial year 201112, Emirates generated revenues of around AED 62 billion, which
represented an increase of approximately 15% over the previous year's revenues of AED 54
billion. Passenger numbers also increased from over 31 million to around 34 million over the
same period representing an increase of around 8%. As of March 2012, Emirates did not use
fuel price hedging. Fuel was 45% of total costs, and may come to $1.7 billion in the year ending
31 March 2012.
In November 2013, Emirates announced its half-year profits, showing a good performance
despite high fuel prices and global economic pressure. For the first six months of the fiscal year
the revenues reached AED 42.3 billion, an increase of 13% from 2012.
Marketing & Branding
From 2004, the airline changed its slogan to Fly Emirates. Keep Discovering In 2008, Emirates
launched a slogan mainly revolving around their route network of 100 destinations in 59+
countries across six continents Fly Emirates. Keep Discovering and Fly Emirates. To over Six
Continents. Most recently Emirates launched a campaign to promote Dubai as a destination
using the slogan Fly Emirates. Meet Dubai.
Other slogans used in the past by the airline include:
Emirates. The Finest in the Sky
Be Good to yourself. Fly Emirates
When was the last time you did something for the first time. Fly Emirates.
Fly Emirates. Keep Discovering
Hello Tomorrow
Emirates introduced a new design in August 2008 for its 16,000 uniformed staff, designed by
Simon Jersey plc. The off-board uniform includes the Emirates hat, red kick-pleats in the skirts,
more fitted blouses and the return of red leather shoes and handbags. For the onboard uniform,
male and female cabin crew wear service waistcoats in place of the previously worn service
jackets and tabards. The male flight attendants wear a chocolate brown suit, featuring
pinstripes, with a cream shirt and a caramel, honey and red tie. Both male and female Pursers
wear this chocolate brown color, but with no red featured.
Since its formation in 1985, though to a limited extent until all aircraft were repainted, Emirates
aeroplanes carried a section of the United Arab Emirates flag on the tail fins, a calligraphy of the
logo in Arabic on the engines and the "Emirates" logo on the fuselage both in Arabic and
English. The color scheme used since 1985 was changed in November 1999 to the one still in
use today. This change saw the modification of logotype, the enlargement and move of the
English logo (the Arabic remaining smaller) towards the front of the aircraft and a different,
flowing flag on the tailfin. Some newer aircraft such as the Airbus A380-800, have the Emirates
logo painted on the belly of the aircraft. Emirates aircraft also have the FIFA World Cup logo on
them, as Emirates is the official airline sponsor.
In cricket, Emirates sponsors Cricket Australia, Lord's Taverners, and Pro Arch
Tournament. Their branding also features on international cricket umpires shirts. Emirates has
also become an official partner of the International Cricket Council until 2015. This deal gives
Emirates association with all major ICC tournaments, including the 2011 and 2015 ICC Cricket
World Cups, ICC Champions Trophy and ICC World Twenty20. Emirates are the Twenty20 shirt
sponsor of Durham County Cricket Club and hold the naming rights to the Riverside Ground
now known as Emirates Durham International Cricket Ground, the Dubai International Racing
Carnival, Melbourne Cup Carnival, and the Australian Jockey Club's Autumn and Spring
Carnival.
Emirates is the major sponsor of the Emirates Team New Zealand challenger to the 34th
America's Cup in sailing.
Emirates are also major sponsors of English Premier League club Arsenal, taking over in 2006,
after four years as the primary sponsors of rivals Chelsea. Arsenal's Emirates
Stadium is named for Emirates. In August 2009 the Scottish Junior Football
Association announced that Emirates would sponsor their Scottish Cup competition. In 2011,
Emirates sponsored the cross-Thames cable car, Emirates Air Line in London. Emirates were
also the major sponsor of the Deccan Chargers team of Indian Premier League, the largest
domestic Cricket tournament in the world. Starting with the 2012 season, Emirates will sponsor
the US Open Series, a six-week summer tennis season leading up to the US Open. Their
sponsorship runs till 2019.
Emirates Airline is the sponsor of AFC travel and play in AFC Champions League, AFF Suzuki
Cup, as well as the primary shirt sponsor of the football clubs AC Milan, Arsenal, Hamburger
SV, New York Cosmos, Paris Saint-Germain and Real Madrid.
Destinations
Emirates operates over 3,000 flights every week across its network of 140 destinations in over
70 countries across six continents from its hub in Dubai. Several new destinations are added
each year.
Alliance
Emirates is currently not a member of any of the three global airline alliances
Oneworld, SkyTeam and Star Alliance. In 2000, however, the carrier briefly considered joining
Star Alliance, but opted to remain independent of the three alliances. The reason for this was
later revealed by senior vice-president of the airline's commercial operations worldwide that,
"Your ability to react in the marketplace is hindered because you need a consensus from your
alliance partners
Divisions
Emirates SkyCargo is the air freight division of Emirates. It began operations in October 1985,
the same year Emirates was formed, and launched its own aircraft services in 2001 with a
Boeing 747 Freighter. They serve 10 exclusive cargo destinations, besides others in common
with Emirates network.
Emirates Executive
Emirates Executive was launched in July 2013 for corporate and private charters. They operate
an Airbus A319 Business Jet, accommodating for 19 people, it features a mix of private suites
and seating, a lounge, dining area and bathrooms with full height showers.
Fleet
Emirates operates a mainly wide-bodied fleet consisting of Airbus A330/A340, Airbus
A380 and Boeing 777 passenger aircraft, as well as Boeing 747-400 and Boeing 777F freighters
operated by 4 Emirates SkyCargo. The only narrow body aircraft is an Airbus A319CJ which is
operating for the recently launched Emirates Executive charters.
The fleet consisted of 206 passenger aircraft, 12 Cargo freighters and 1 Executive jet as of
March 2014, with a further 375 aircraft on order. In keeping with its policy of maintaining a
young fleet, which stood at an average of 6.3 years as of March 2014, the airline renews its fleet
frequently.
Business Model
The established network carriers in Europe and Australia, i.e. Air France-KLM, British
Airways, Lufthansa, and Qantas, perceive Emirates' strategic decision to reposition itself as a
global carrier as a major threat because it enables air travelers to by-pass traditional airline
hubs such as London-Heathrow, Paris-CDG, and Frankfurt on their way between Europe/North
America and Asia/Australia by changing flights in Dubai instead. These carriers also find it
difficult to deal with the growing competitive threat Emirates poses to their business because of
their much higher cost base.
Some of these carriers, notably Air France and Qantas, have accused Emirates of receiving
hidden state subsidies and of maintaining too cozy a relationship with Dubai's airport authority
and its aviation authority, both of which are also wholly state-owned entities that share the same
government owner with the airline. They also allege that Emirates is able to reduce its borrowing
costs below market rates by taking advantage of its government shareholders' sovereign
borrower status. They claim that this government support cross-subsidizes the airline, masking
its true financial performance.
In May 2010, Emirates Airline executives refuted claims that the carrier does not pay taxes and
receives substantial financial assistance from the Dubai government. They claimed that the
airline received $80m in cash in kind since the start of the airline 25 years ago and this was
substantially lower to what other national carriers have received. Maurice Flanagan also claimed
that Emirates incurred social costs of around $600m in 2009 and this included municipal taxes
to the city of Dubai. The airline also paid a dividend of AED956m ($260m) in 2010, compared to
AED2.9bn ($793m) in 2009 and each year the Government has received at least $100m in
dividends.
Emirates also faces competition from other UAE-based airlines, Etihad Airways of Abu Dhabi
and the low-budget Air Arabia of Sharjah, as well as Qatar Airways of Qatar.
Accidents & Disasters
On 9 April 2004, an Emirates Airbus A340-300 operating a flight from Johannesburg to
Dubai sustained serious damage during takeoff when it failed to become airborne before the
end of the runway, striking 25 approach lights, causing four tires to burst which in turn threw
debris into various parts of the aircraft, ultimately damaging the flap drive mechanism. This
rendered the flaps immoveable in the takeoff position. The aircraft returned for an
emergency landing during which the normal braking system failed as a result of the
damage. The aircraft was brought to a stop only 250 meters from the end of the 3,400 meter
runway using reverse thrust and the alternate braking system. In their report, South African
investigators found that the captain had used an erroneous take-off technique, and criticized
Emirates training and rostering practices.
On 20 March 2009, Emirates Flight 407, an Airbus A340-500 Registration A6-ERG en route
from Melbourne to Dubai failed to take off properly at Melbourne Airport, hitting several
structures at the end of the runway before eventually climbing enough to return to the airport
for a safe landing. There were no injuries, but the incident was severe enough to be
classified as an accident by the Australian Transport Safety Bureau.


Introduction: Qatar Airways
Qatar Airways Company Q.C.S.C., operating as Qatar Airways, is the state-owned flag
carrier of Qatar. Headquartered in the Qatar Airways Tower in Doha, the airline operates a hub-
and-spoke network, linking over 100 international destinations across Africa, Central Asia,
Europe, Far East, South Asia, Middle East, North America, South America and Oceania from its
base in Doha, using a fleet of more than 100 aircraft.
The airline has more than 30,000 staff, with 17,000 people employed directly and a further
13,000 in its subsidiaries. On October 8, 2012, CEO Akbar Al Baker announced that Qatar
Airways would join the One world alliance. The carrier became a full member just one year
later on October 30, 2013.
History
Qatar Airways was established on November 22, 1993. The airline started its operations
on January 20, 1994, using a wet-leased Boeing 767-200ER from Kuwait Airways. It was
originally owned privately by members of the royal family of Qatar. Then it was re-
launched in 1997, under a new management team. Currently, the government of Qatar
holds 50% stake in the airline with the rest held by private investors.
On March 24, 1997, Qatar Airways took possession of its first Airbus A300-600 aircraft
on lease from AWAS in new Qatar Airways livery. On February 1, 1999, it took delivery
of its first new Airbus A320 aircraft (A7-ABR) on lease from Singapore Aircraft Leasing
Enterprise (SALE).
In May 2002, the Government of Qatar withdrew from Gulf Air. At that time, fast-growing
Qatar Airways had 21 aircraft.
On May 10, 2003, Qatar Airways took delivery of its first Airbus A330-200 aircraft (A7-
ACA). On January 11, 2004, at the Dubai Airshow, Qatar Airways placed orders
for Airbus A380s and A340-600s. Its first A340 was delivered on September 8, 2006.
On June 18, 2007, Qatar Airways became the launch customer for the Airbus
A350 when it ordered 80 aircraft worth US$16 billion, at the Paris Air Show. On June 27,
2007, Qatar Airways made its first flight to the United States when it began service to
New York.
On November 11, 2007, Qatar Airways ordered 60 Boeing 787-8 Dreamliners and 32
Boeing 777s. On November 29, 2007, the airline's first Boeing 777-300ER arrived at
Doha.
On February 3, 2009, the airline took delivery of its first Boeing 777-200LR.
On June 15, 2009, at the Paris Air Show, Qatar Airways ordered 20 Airbus A320 and
4 Airbus A321 aircraft worth $1.9bn.
On October 12, 2009, the company completed the worlds first commercial passenger
flight powered by a fuel made from natural gas, and on December 1, 2009, Qatar
Airways' first scheduled flight to Australia arrived in Melbourne.
On May 18, 2010, the airline put its first Boeing 777F (A7-BFA) into service, with a flight
from Doha to Amsterdam. The aircraft had been delivered on May 14, 2010.
Qatar Airways is expanding. The airline has launched 22 new destinations since 2010,
with nine more destinations announced: Ankara, Aleppo, Bangalore,
Barcelona, Brussels, Bucharest, Budapest, Buenos Aires, Copenhagen, Hanoi,Montreal,
Nice, Phuket, So Paulo, Shiraz, Kolkata, Medina, Oslo, Sofia, Stuttgart, Venice and
Tokyo. Qatar Airways also expected to launch Baku, Tblisi, and Entebbe during 2011.
These new routes will bring the number of destinations Qatar Airways serves from 85 to
110 worldwide.
In November 2011 at the Dubai Airshow, the airline announced an order of 55 Airbus
planes: 50 A320neo and 5 A380, in addition to two Boeing 777 freighters.
In October 2012, Qatar Airways revealed its new route destination to Phnom
Penh, Cambodia.
On October 8, 2012, Qatar Airways announced its intention to join
the Oneworld alliance.
On December 13, 2012, Qatar Airways began Boeing 787 Dreamliner service from Doha
to London Heathrow.
In February 2013, Qatar Airways launched its European Customer Service, which is
located in Wrocaw, Poland.
On November 17, 2013, the first day of the Dubai Airshow, Qatar Airways announced its
intention to purchase 50 Boeing 777-9X.
Corporate Strategy
Divisions
Qatar Airways has many divisions including: Qatar Aircraft Catering Company, Doha
International Airport, Qatar Airways Holidays, United Media International, Qatar Duty Free,
Qatar Aviation Services, Qatar Distribution Company, and Qatar Executive.
Qatar Airways Cargo, the airlines freight branch, has ordered three Boeing 777F. The first
Boeing 777F was delivered to the airline in on May 14, 2010, and has freight facilities able to
handle 750,000 tons of cargo per annum during its first development phase. The Boeing 777F
will be used primarily on Qatar Airways' Far East and European routes and will be
supplemented by Airbus A300-600F freighters operating on regional routes feeding the airline's
hub.
Dedicated cargo flights to Cairo International Airport were launched in June 2009
complementing the passenger services already operated.
On August 18, 2010, the airline launched its first US dedicated cargo service from its hub
in Doha to Chicago with a stop-over in Amsterdam, Netherlands using Boeing 777 freighter
aircraft.
Qatar Airways Cargo is poised to replace its Airbus A300-600F freighters with new-build Airbus
A330-200Fs after concluding a lease deal with BOC Aviation. The carrier is also negotiating a
larger deal for either new or converted Airbus A330 freighters
.

Qatar Executive
Qatar Executive is a corporate jet subsidiary of Qatar Airways, with its own livery, sporting a
white fuselage with a slightly smaller Oryx painted in the airline's traditional colors of burgundy
and gray.
The Royal fleet of Qatar Amiri Flight also are painted in full Qatar Airways livery, although they
are not part of the airline or Qatar Executive.
Natural gas to liquid fuel demonstration
On October 12, 2009, a Qatar Airways Airbus A340-600 conducted the world's first commercial
passenger flight using a mixture of kerosene and synthetic Gas-to-liquids (GTL) 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

Cabin crew
The airline has over 120 nationalities among its cabin crew.
Sponsorships
In July 2013, Qatar Airways became FC Barcelona's primary shirt sponsor. CEO Akbar Al
Baker said : "We are delighted to form this alliance with FC Barcelona, the biggest football club
in the world". In April 2013, Qatar Airways became Anorthosis Famagusta's shirt sponsor.
Destinations
As of March 2014, Qatar Airways serves 135 destinations across Africa, Asia, Europe, North
America, South America, and Oceania from its hub at Doha International Airport, making it one
of only a handful of airlines to fly to all six inhabited continents
Interline Connections
Qatar Airways also has interline agreements with the following airlines:
Porter Airlines passengers can fly from Toronto (Billy Bishop Toronto City Airport)
to Doha (Doha International Airport) via transfer at Dulles International Airport.
Precision Air Qatar Airways passengers can connect to other East African destinations
such as Arusha, Moroni, and Zanzibar via the Julius Nyerere International Airport in Dar es
Salaam, Tanzania.
First class
Qatar Airways offers First Class passengers over 6.5 feet of legroom and seats that fold into flat
beds with feather duvets. First Class seats are equipped with massage functions and an
entertainment system. Qatar Airways plans to eliminate First Class cabins from existing A340
aircraft, as well as new aircraft deliveries, except the A380s. Al-Baker has announced that all
upcoming 777 and 787 deliveries will be in standard two-class configuration.
Business class
Qatar Airways offers Business Class passengers fully flat horizontal beds in a 2-2-2
configuration on board its Boeing 777 aircraft. On other long-haul aircraft, business class seats
recline up to 172 degrees, with massage functions. Wines and Champagne are served.
Qatar Airways has introduced new Business Class seats on board its newly delivered A320
aircraft with IFE seat-back PTVs in every seat. It will introduce the new seats in each upcoming
new A320 aircraft, as well as retrofitting 4 existing A321 and 2 A319LR aircraft.
In March 2012 Qatar Airways revealed a new business class cabin, to be launched on the new
Boeing 787 aircraft from summer 2012, initially on intra-Gulf routes before being introduced on
the Doha to London Heathrow route. The new seats are arranged in a 1-2-1 configuration
allowing direct aisle access for every passenger, and provide almost twice as much space as
existing business class cabins. The seats will be 22 inches wide and converts easily to a flat-
bed which extends to 80 inches and is 30 inches wide. Each seat has also been fitted with touch
screen technology which is powered by Android.
Economy class
Qatar Airways Economy Class was named best in the world in the 2009 and
2010 Skytrax Awards. Qatar Airways offers Economy Class passengers a seat pitch of up to
34 inches. Economy class passengers on A330/A340 aircraft are offered individual seat-back
TV screens. Passengers on Boeing 777 and 787 aircraft are offered touch-screen TVs.
Qatar Airways has taken delivery of several A320 family aircraft so far with individual seat-back
personal televisions in every seat in economy class. The IFE is equipped with the
same Thales entertainment system as used in the wide-body fleet. A further four A321s and the
two A319LRs will be equipped with the new IFE, as well as new upcoming A320 family aircraft
deliveries.
New economy seats will be introduced with the launch of the 787. These new seats will be
produced by Recaro and are fitted in a 3-3-3 configuration. 16.9 inch width and a pitch of 32
inches will offer less personal space than before. Furthermore each seat will have a 10.6 inch in
seat TV monitor offering in-flight entertainment. The features will also extend to the possibility of
Wi-Fi and GSM telephony usage and USB ports for connecting personal items such as digital
cameras.
Privilege Club
Qatar Airways' Privilege Club loyalty program has reciprocal agreements with Asiana Airlines'
Asiana Club, Middle East Airlines' Cedar Miles, All Nippon Airways' Mileage Club, and US
Airways Dividend Miles frequent flyer schemes. Privilege Club also has tie-ups with international
hotel and car rental companies.
Partnership with Lufthansa's Miles and More and United's Mileage Plus has been terminated as
of December 31, 2011 and September 14, 2012, respectively.
Premium Terminal
The Premium Terminal: Qatar Airways' dedicated terminal for First and Business Class
passengers, opened at Doha International Airport in Winter 2006. Built in nine months at a cost
of US$90million, the 10,000sqm Premium Terminal features facilities include check-in, duty-free
shopping, conference rooms, nursery and play area, spa treatment rooms, sauna, jacuzzi and
restaurants. The business class lounge has undergone renovation that has increased the
seating capacity by more than 80%. CEO Akabar Al Bakar is also leading the development of
the New Doha International Airport, which opens in phases from June, 2014.
The airline's first lounge outside Doha airport opened at London Heathrow's Terminal 4 in
January 2012 and is modeled after the airline's premium terminal in Doha.
Mobile Application
In August 2013, Qatar Airways launched a new service a mobile application available for
Android, iPhone and Blackberry, which offers convenience for the passengers.
Incidents and Accidents
On April 19, 2007, an Airbus A300, registration A7-ABV, was written off as a result of a
hangar fire during maintenance at Abu Dhabi Aircraft Technologies.
On October 14, 2010 a Qatar Airways pilot suffered a fatal heart attack shortly after take-off
and was declared dead after the plane landed at KLIA. The pilot was identified as a 43-year-
old Indian, Ajay Kukreja.
Workplace Controversies
In 2013, The Economist claimed that "a perusal of online forums used by cabin crew suggests
that Qatar has a reputation for severity among industry professionals," that "allegations of harsh
treatment and overbearing scrutiny are commonplace," and that "the conditions laid down by
Qatar Airways go beyond more familiar rules." The Airways' CEO Akbar Al Baker has previously
stated, "We are not running an intelligence agency, we are an airline company. The reason why
I know everything happening in the company is...Im simply everywhere, talking to everyone,
listening to them."
In 2014, the Swedish newspaper Expressen published a report ostensibly based around three
Qatar Airways employees, whose life is allegedly heavily "monitored" and "controlled" by the
company. Qatar Airways' Swedish PR agency responded to the report by stating, "Because we
do not know which individuals and which particular cases the article is based on, Qatar Airways
is unable to comment. CEO Akbar Al Baker stated that the allegations "are not against [the
company] but against [Qatar]." He added, "They are throwing stones at my country for no
reason at all.
The International Transport Workers Federation (ITF) has "slammed" Qatar Airways for certain
stipulations found in the standard hiring contracts for female cabin crew members, including the
need to apply for permission before getting married. The ITF has lobbied the International Civil
Aviation Organization to "take action" on what ITF termed flagrant abuses of aviation workers
labour rights by carriers based in Qatar and the UAE.

Awards
Airline Of The Year 2011 & 2012
Best Business Class In The World 2013

Finance & Investments
Is it profitable? Well, Qatar Airways does not release its figures, though Al Baker has been
quoted as saying the Qatar Airways Group made a net profit in 2010 of US$215 million, and
US$205 million for 2011 this latter figure on revenues of US$5.8 billion, with the airline part
making up US$5.1 billion.
Qatar Airways made a small loss last year because of high fuel costs. The airline posted a small
net loss in the 2011/12 financial year that ended March 31, because of high oil prices, compared
with a profit the year before, according to Qatar Airways chief executive Akbar Al Baker. He
didnt give further details.

New airport delayed
The opening of the first phase of Dohas new airport, valued at $11 billion (Dh40.4 billion), has
been delayed to around June next year, according to Al Baker, after a major contractors
contract was terminated because they fell behind schedule.
The airport was originally due to open this December.
Al Baker declined to give the name of the new contractor, but said it would be responsible for
construction of all 18 airport lounges. The planned airport is to be opened in three phases and
completed by 2015, with eventual capacity to accommodate 50 million passengers.
He further said Qatar Airways will study last weeks decision by the Indian government to allow
foreign airlines to invest in its struggling aviation sector.
Days ago, India lifted foreign ownership restrictions in its aviation sector, allowing overseas
airlines to buy up to a 49 per cent stake in domestic carriers. Gulf airlines have long been touted
as potential investors in India where a lack of international investment has stunted growth, in
spite of huge growth opportunities.

Investment hurdle
Al Baker said bureaucracy remained a hurdle for investment there and more time was needed
to study the details of the new law.
He further dismissed claims of alliance talks with British Airways or any other airline after reports
earlier this month said BA parent International Airlines Group (IAG) had held discussions with
Qatar about a partnership focused on Asia.
Al Baker further admitted it was embroiled in a spat with Boeing Co over the quality of cabins
onboard its new 787 Dreamliner. He said the problem was technical, but there were also
issues with the quality of the cabin in Boeings much-delayed lightweight fuel-efficient jet that
promises passengers more comfort and space than other aircraft.
Qatar Airways is very meticulous about our cabins and we will not take our cabin even if there
is just a scratch, Al Baker told reporters in Doha Monday.
Meanwhile, as a customer, Al Baker said he was in favor of a potential $45 billion merger
between Europes EADS and BAE Systems to form the worlds biggest aerospace and defense
company. The firms revealed last week that they were in talks on a merger.
It will enhance their product, and it is good for an airline to have two major contributors to the
Airbus aircraft getting together as one company. This would bring efficiency and reduce the cost
of the product. Of course Im in favor of it, he said.

QUESTIONS:
1. Carry out a TOWS Analysis for both Emirates and Qatar Airways.
2. Construct a CPM
3. Develop SPACE Matrix for both organizations*

Submission & Presentation Dates:
For Friday Section: 16
th
May 2014
For Saturday Section: 17
th
May 2014
For Sunday Section: 11
th
May 2014










*You are allowed to make assumptions in the Financial Strength dimension wherever factual data is
not available.