PPRuNe Forums - Do we really need two more low cost carriers in the ME?

Qatar Airways to buy four Airbus A321s

Published: July 15, 2008, 23:40

Farnborough: Following Monday's thundering start to the Farnborough International Air Show, where Dubai's new low-cost operator FlyDubai announced that it is investing in 50 next-generation Boeing 737-800s worth around $3.74 billion at list prices, the tempo dropped noticeably yesterday.

It was left to Qatar Airways to provide the silver lining for the aviation industry, which has been wilting under a recession that has resulted in thousands of job losses.

Qatar Airways, one of only six airlines in the world with a five-star rating for service and excellence, confirmed a firm order for four Airbus 321 aircraft with options for a further two, in a deal worth close to £270 million.

The Doha-based airline also said it remains interested in Bombardier's CSeries, the new family of 110-149 seat commercial jets that are expected to enter the market in 2013.

Detailing the negotiations, chief executive Akbar Al Baker said the airline was close to launching a budget carrier to remain competitive in the burgeoning Middle East market.

Low-cost operators like Jazeera and Air Arabia have bit into the market while FlyDubai is projected to become operational by 2009.

Al Baker said Qatar Airways was poised to set up its budget airline "within 90 days".

He said: "Setting up a low-cost carrier depends on our rivals eroding Qatar Airways' market share, but we are ready to respond. We have a name registered, we have aircraft available and we will be ready to launch within 90 days from when I feel the pain of the low-cost market."