From what I have heard there are incentives offered by SHJ for QR to start flights there. SHJ has been trying for a while to attract passenger airlines to fly there especially with the new terminal under construction which would otherwise be a waste if not more passenger airlines operate to SHJ.
In my opinion starting flights to SHJ is a wrong move and if they see lots of demand to that area of the UAE then adding extra flights to DXB is a better move. Also 2 flights per week doesn't make much sense in attracting business passengers or connecting passengers. Probably the only people you'll see utilising these flights are labourers from South Asia.
On the subject of yeilds, most if not all airlines around the world saw dropping yeilds in the current economic climate especially after September 11. You are seeing airlines such as BA which traditionally were very reserved with discounted tickets now offering excellent deals for Business and First Class passengers. QR are known on having low prices for connecting traffic, but this practice is not only used by QR but by most other airlines operating to the Gulf. From Doha if I want a cheap ticket to Europe, my best bet is KLM followed by GF or EK. To Asia both EK and GF undercut QR ex DOH and you see airlines like AI, BG and even IR offering unpassable deals to Asia. Another thing to consider is that QR don't advertise much (something that I disagree with) but the CEO believes that offering cheap tickets will still be cheaper and more effective in attracting passengers than advertising.
Another trend that I am surprised no one noticed is that QR are also increasing prices to many markets. Ex-LHR QR had very low prices to Asia and the Gulf. Prices started to increase after QR got more established in the London market. After September 11 prices plunged again and this is a natural way to attract passengers back into flying. Now if you monitor prices on QR ex-LHR you will see a steady increase in prices from round about March and now for example prices to KTM and MLE are nearly double what they were at around January. The same thing is happening all accross QR's network, in routes where QR are starting to get more established prices are being raised to being comparable or even higher than competitors.
One last point, QR's isn't supposed to be profitable untill ~2007 and all losses are acounted for. In fact from what people in Upper Management said including Al-Baker QR are meeting and exceeding all their targets and the losses they are making are less than what they have accounted for.
If I was running an airline I would chose a slow and steady expansion plan, but with QR's financial backing they can afford rapid expansion plans and only time will tell if those plans will be succesfull or not. In fact if you looked at Al-Baker's plans in 1997 you will see that he didn't plan all this expansion but rather pursued a more slow, steady and focused expansion plan but the reason QR have been going through all of this expansion a few years ahead of this plan is summer up in this quote from Al-Baker.
We plan to freeze our fleet expansion no later than 2005 and then wait until we get our A380's. But we are servants of our country, and if my government wants me to expand more than is allowed for in my business plan, then I have to obey. We are geared towards the requirements of the state.
If the government wants QR to expand in expense of profits then it is their right since they are the ones financially backing it.
Anyway I am happy that this thread has gone down to the level of hurling insults and constant bickering.