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 VIP Interview
Akbar al Baker
Akbar Al Baker is the Chief Executive Officer of Qatar Airways and responsible for the development of the new Doha International Airport.
FLUG REVUE: Over the last ten years your airline has grown on average by 35 percent. How long do you expect to maintain this pace of expansion?
Akbar Al Baker: In the 2005/2006. business year we had 6.3 million passengers, and in 2006/2007 the figure had already risen to over 8 million. This trend will continue as we are registering a huge growth in traffic and we are expanding our network and fleet. We expect our present fleet of 57 aircraft flying to 75 destinations to double to 110 aircraft by 2015. This includes plans to purchase 80 Airbus A350's and 20 Boeing 777's. You can see from these figures just how serious we are. Over the next 10 to 15 years the Middle East will experience particularly strong growth.
FR: Are you not threatened by the prospect of new competitors, especially ones with low fare concepts?
Al Baker: Low fare airlines do not pose a threat to us as we serve a different market segment with full service. This service and the onboard comforts that we offer remain attractive to travellers and give us a competitive advantage.
FR: Is there a shift in focus under way from medium-range connections towards the long-haul area?
Al Baker: We are looking at all lucrative markets. Our modern Airbus fleet goes down very well with discerning customers in the huge long-haul market. Since the beginning of the year we have added Ho Chi Minh City, Lagos, Dar es Salaam, Chennai and Bali to our flight schedule. By the end of the year we will also be flying to New York, Washington DC, Geneva and Stockholm.
FR: What are your plans for Germany?
Al Baker: With 21 flights a week to Frankfurt, Munich and Berlin, we are currently fully utilising our traffic rights. If we were to get an extended traffic agreement, we would also be interested in Stuttgart and Düsseldorf.
FR: You were one of the first airlines to order the Airbus A380. When will you take delivery of your aircraft?
Al Baker: The A380 will completely change the nature of air travel. We are looking forward to getting our first A380 in 2009 and we will make sure that we permanently impress our passengers. At present we have four aircraft on order.
FR: You are in the process of evaluating the Boeing 787 and Airbus A350XWB. What do you think of the two types, and are you satisfied with the changes to the A350?
Al Baker: We are looking at both aircraft types and when we make our decision it will be based on performance, fuel consumption and costs. We have announced our interest in up to 80 Airbus A350's, but we have not yet made a final decision.
FR: Your business model places a lot of emphasis on comfort. How do you see the future differences between individual booking classes?
Al Baker: Passengers have become a lot more used to flying and more demanding. They expect as much choice as possible and the highest standards in every class. A lot of airlines water down their standards as soon as they grow. We want to maintain the level and even raise it further.
FR: From a strategic point of view what are the differences between Emirates and your airline?
Al Baker: We will probably always be compared with Emirates, but we have our own values. Our motivated staff make us stand out from the competition. We are also the only airline in the Middle East to have been awarded five stars for service in passenger surveys conducted by the Skytrax market research company.
FR: You are building a new hub airport in Doha. How is the work coming along?
Al Baker: We are well on schedule to open Doha International Airport in 2009. The land reclamation is finished. 60 percent of the grounds are on artificial land. The foundation stakes for the terminal are being laid at the moment and the surface area for the two runways is being levelled off. Major construction phases are beginning this year. We recently decided to bring forward the start of the second construction phase from the planned date of 2012 to 2009. Otherwise, with 12 million passengers, we would be up at the capacity ceiling right away.
FR: A lot of competitors from Europe complain about unfair government assistance for Middle Eastern airlines, which often pay only very low taxes. How would you answer these critics, and when will you become profitable?
Al Baker: Our ongoing operations are already self-supporting, and we are expanding without state assistance. Our business model works and is efficient. We expect to be making a profit in 2012.
Sebastian Steinke was asking the questions.
From FLUG REVUE 7/2007, page 19
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