Qatar Airways Plans A Business-Class Revolution

CEO Akbar Al Baker at a press conference on the delivery of the first Airbus A380 to Qatar Airways in Hamburg.
European Pressphoto Agency

Qatar Airways has caught the “revolution” bug that has swept the Middle East as Chief Executive Akbar Al Baker promises changes for business class seats at the airline that prides its reputation for high-end service.

By mid-2016 the airline plans to roll out a new business class seating arrangement that Mr. Al Baker describes as “a first-class product sold as business class.” The executive would not discuss details of what he said is a proprietary set-up that will represent “a substantial revolution.”

Qatar Airways is betting big on business class as it largely phases out first class seating across its fleet. That decision was taken when the airline realized fewer and fewer business travelers were cleared to pay for the top-end product.

Most first class passengers never pay the full premium fare, Mr. Al Baker said. The airline’s load factor, a measure of seats sold, is only 40% in first class.

Some first class seating will remain on the airline’s Airbus Group NV A380 super jumbos. Qatar Airways has now taken delivery of the first jet and will grow its fleet to four A380s by year end, with at least six more to come in the following two years. The airline may buy more A380s if the plane proves its worth, Mr. Al Baker said.

The jets, which can accommodate 517 passengers in Qatar Airways’ configuration, feature eight first class seats on the upper deck. The airline will start operating the jet from its Doha hub to London Heathrow from next month, with a Paris service to follow.

Qatar Airways is eschewing the lavish first class products its most immediate Persian Gulf airline rivals are talking about. Abu Dhabi’s Etihad Airways, which is due to receive its first A380 this year, plans private rooms with butler services, while Dubai flag carrier Emirates Airline, the largest operator of the super jumbo, eyes a similar offer.

“We have no residents and no suites and no butlers. But we have class,” Mr. Al Baker said in a pointed reference to his rivals.

Qatar Airways also is steering clear of the trend of introducing so called premium economy seating, a product priced cheaper than business class but with more amenities than standard economy class. Mr. Al Baker quips that the airline’s new economy class is effectively a “premium eco” offering, though at the cheaper price.

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(via WSJ Blogs)



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