Al-Meer speaks out on strategy changes at Qatar Airways

At the Farnborough Air Show on July 23 a group of journalists had the opportunity to quiz Al-Meer on the direction he wants to take Qatar Airways in a 30-minute round table.

Up until this point, Al-Meer’s public appearances had been few and far between, limited to a CNBC TV interview in March, and taking part in a Bloomberg-moderated panel alongside Yvonne Manzi Makolo, the CEO of partner airline RwandAir, on connecting the Middle East and Africa at the Doha Economic Forum in May.

It was during this conversation that Al-Meer revealed the group is close to securing an equity investment in a “southern African” airline.

The chance to hear first-hand from Al-Meer at Farnborough was a hot ticket for the media, with this writer alongside peers from Reuters, The Wall Street Journal, Aviation Week, Simple Flying, The Daily Telegraph and others crammed around the table at the Qatar Airways chalet at the show. We even had name cards to help Al-Meer and his team identify who was asking the question because he hasn’t met many of us.

The rules of the round table game were spelled out by the airline’s PR team – one question each. We politely stuck to that for the most part.

The Times Aerospace website has already covered my kick-off story on what Al-Meer said is an imminent announcement on its deal to buy a stake in a southern African carrier.

This move is not a strategy shift in Africa, as Qatar Airways is already in long-running talks to take a stake in partner RwandAir as it seeks to build its network, traffic and impact on the continent.

However, it does signal the increasing importance the carrier is placing on African traffic connecting via Doha, with it serving more than 30 destinations today with more to come.

Moreover, airline investments are no stranger to Qatar Airways as it uses minority shareholdings as an influence lever. This began in 2015 with its 9.99% stake in International Airlines Group (IAG) and it has also taken stakes in Cathay Pacific Airways, Meridiana [ceased operations in 2018], China Southern Airlines and LATAM Airlines Group.

The A380 stays on

Image:  Qatar Airways

Al-Meer was asked about the airline’s thinking on the Airbus A380, the question prefaced with the suggestion that Al Baker had once called the decision to buy it a mistake.

“His Excellency, Mr Akbar, maybe he made this comment years ago, based on the situation of the industry at that time. Today, it's different,” he said. “We have so many restrictions at so many airports around the world.

“The A380 is the best option to operate to certain airports. For example, the A380 is the best option for us when we are restricted on the number of flights to go to Australia.

“The plan was to exit the A380 from our fleet this year. However, the decision internally between the commercial, finance and the planning team was to extend the operation of the A380,” explained Al-Meer.

The carrier had brought five of its 10 A380s back into service late in 2021 to give it capacity following the grounding of its A350 fleet because of the surface degradation issue on that aircraft. It has since been operating seven A380s with three remaining in storage.

Not only will Qatar Airways stick with A380s it will upgrade them. “For example, unfortunately, the A380 that we operate at Qatar Airways, the Wi-Fi is not as fast as on our other aircraft. The first project that we will undertake immediately is to upgrade the Wi-Fi service of the A380,” he said, adding that internal discussions are also under way about whether to upgrade the cabins too.

Major widebody order on the cards

While Qatar Airways placed a follow-on order at Farnborough for 20 more Boeing 777-9s, taking its commitments to the type to 94 aircraft, the carrier is still pondering another massive widebody order.

While not revealing how many aircraft it is seeking, saying only it will be a “sizable” order, Al-Meer explained that it issued the tender to Airbus and Boeing in March. It is thought to be looking for up to 200 widebodies.

“We need to take our time to evaluate what we get from both manufacturers,” he said, with the order announcement hopefully by Q1 2025.

And, he added, the airline does not have to rush a decision. “We are not in a situation that we are so desperate to get a new aircraft. We have orders that are already in place. We are receiving new aircraft every month and will continue to receive our aircraft up to 2027 with the firm orders we have.”

Speaking about when Qatar Airways will take delivery of the first of its Boeing 777-9s, Al-Meer said: “We already have a firm commitment from Boeing to deliver on a certain date and we have aligned with the other suppliers; the seat suppliers the IFE, the galleys, with the goal to make sure that we are still one of the launch customers.”

The certain date Boeing has told Al-Meer is Q1 2026. He would not be drawn into criticising Boeing for the long delay to the 777X programme. “What is important now for us is to receive it in the first quarter [of 2026],” he said. “Today, as English people say, let us not cry over spilt milk. Let us focus on the new delivery.”

Airbus reset

A350. Image: Qatar Airways

Looking forward and not back is an emerging theme for Al-Meer. That goes for his airline’s work with key OEM Airbus too.

In 2022 and 2023 the carrier was embroiled in a bitter legal dispute with the airframer over skin-paint deterioration on its Airbus A350 fleet. This led the Qatari Civil Aviation Authority to ground several aircraft.

In February 2023, Qatar Airways and Airbus reached an “amicable and mutually-agreeable settlement in relation to their legal dispute over A350 surface degradation and the grounding of A350 aircraft”.

Al-Meer said at Farnborough: “We have a very good relationship with Airbus. I am meeting Guillaume [Airbus CEO Guillaume Faury after today and we have continuous discussion with them. And just to prove this, you know the problem of the deliveries and aircraft that everybody is facing, Airbus managed to deliver some of our aircraft earlier than on their committed dates.

“And again, another proof that we have a very strong relationship with Airbus is that they were invited for the RFP that we placed,” he said.

Competitive pressure

A frequently-asked question of all the Gulf carrier CEOs is whether the rise of Saudi carriers, and Riyadh Air in particular, plus a revitalised Air India, poses a threat.

“The market is very big,” started Al-Meer. “There are opportunities and there is room for other airlines to come and operate out of this region. For example, the Saudi market is huge, and I am sure when Riyadh Air comes into business, in 2025 or 2026 nobody knows, they will take part of the Saudi market.

“But as Qatar Airways we are not only dependent on the Saudi market. As you know, we are a business hub, we connect way more destinations and cities to Doha. We'll see how things work between Riyadh Air and us, but I don't think there is any risk to our operational model.”

In fact, traffic is surging once again this year, he noted. “I've seen the passenger numbers at Hamad Airport, we are up by 24-25 per cent compared with last year. Last year, our total passenger number was 45 million. And we are expecting this year to exceed 52-53 million passengers.”

This brings another headache relating to the capacity for growth at Hamad International Airport, be it for the flag carrier or others, but there was not time to explore that issue during the round table.

Al-Meer’s comments are carefully worded to not dismiss Riyadh Air or anyone else, but he is confident in the product and reputation his carrier has built.

“[We view] everyone as a serious competitor. But competition is there, and we survived competition for the last 27 years. When Qatar Airways came up 27 years, nobody expected it to reach this level and now we are the best in the world,” said Al-Meer.

First class product

The Qsuite. Image: Qatar Airways

One of the significant changes in direction being steered by Al-Meer is a surprising one – the return of a first-class product. Many carriers have moved away from first-class as it has become superfluous with business class products offering such a good customer experience.

Today, the carrier only offers first-class on its A380s, but in March Al-Meer revealed the plan to install a first-class cabin on its newly-delivered widebodies, the 777-9 and A350.

Qatar Airways is well advanced on the product development, which is bespoke to the carrier, and Al-Meer said he was going to see the prototype later during the Farnborough week.

“It will be on the new orders,” said Al-Meer, but he is cautious about the timeline. “As you know, it's the problem of supply chain, the problem with certification. We are working very closely with suppliers or with manufacturers to see how they can accelerate the certification process.”

At Farnborough the carrier took the wraps off its newly-developed business-class Qsuite product.

The Qsuite has been exclusively designed by the airline in partnership with its cabin systems supplier Adient Aerospace, a joint venture company between Adient and Boeing. The redesigned product will debut on the 777-9 first and then installed onto new Airbus A350s. The carrier will explore retrofitting the new Qsuite onto its existing A350 fleet.

Market outlook

Some carriers in the US and Europe have warned of softening traffic volumes and falling yields as the post-pandemic demand hike weakens. Al-Meer was asked how his airline is faring.

“From what we see at Qatar Airways, the demand is there,” he said. “And it is proved by the numbers that we see, and it continues to go up. In the first quarter of this year the net profit is more than double what we got in the first quarter of last year.

“In July, the numbers look much better than last year,” said Al-Meer, noting that in its recently-announced annual results it posted record revenues and profits.

“So, we continue to see very high demand,” he concluded.

Airline investments

A recent media story linked Qatar Airways with the acquisition of a stake in Virgin Australia. Al-Meer would not be drawn: “I will not be able to comment on this.”

“But would you be interested?” said the journalist who asked the question. “We're always interested to expand Qatar Airways investments,” he added.

Intensifying the influence of Qatar Airways in regions of interest, as proven with its African projects, is a key part of its strategy.

That strategy sees it remaining hands off in terms of its involvement, he said. “We don't manage, we don't get involved. For example, at IAG they have their own team, their own management, their own boss, and then they manage the airline, and we deal with them on a commercial basis like any other airline we work with.

“And the relationship between us and IAG is like the relationship that we have with American Airlines. It's a win-win situation for both,” he said.

Expanding on its relationship with IAG, El-Meer said: “When it comes to IAG, we realised in the last few months that there is more synergy in working with IAG, and there are way more opportunities.

“For example, when you go to ground handlers it is better to go as IAG and Qatar Airways to negotiate and get better prices than go as Qatar Airways only. This is how we will we invest in the relationship between us and those companies.”

Is Al-Meer a people person?

Product, airline investments, financial results and new aircraft are the hard side of the Qatar Airways business story and how Al-Meer will get to grips with them. The soft side is no less taxing, and there is intense interest in how Al-Meer will run the group from a people perspective.

As I wrote in a leader for the August issue of Arabian Aerospace: “Qatar Airways is indisputably the airline that Akbar built. Not single-handedly, but this utterly-driven, shamelessly meticulous and intensely-demanding leader propelled himself, his team, partners and suppliers, to create the five-star airline, airport and business of today.

“So, the person coming after generates great interest. What will they be like? What will their business style be? Can we do business with them? And, inevitably, will they be like Akbar?”

“Badr Al-Meer steps into the hot seat at Qatar Airways as a virtual industry unknown, despite running Doha’s Hammad International Airport since 2014.

“As the handshakes, meetings and phone calls mount up he is turning from an enigma to a real person. And people like what they see.

“Gone is the ‘personality CEO’ with strident, often controversial statements, and a strict regime and standards for employees and suppliers.

“It is replaced by a person with a softer manner, who outlined his brave new world for Qatar Airways v2.0 on day one, telling employees in a personal letter that he wants “a culture of trust and empowerment. My vision as a CEO is to listen to the employees.”

“Less than a year into the job, Al-Meer was asked at the media round table at Farnborough if his approach is working. “The best answer for this question is ask the cabin crew around you – they have wider smiles,” he replied, referring to the team scattered round the room.

“One jolly event is hardly proof, but there is certainly an air of reset at Qatar Airways, which is what Doha wants from Al-Meer on many fronts.

“Now it is time for a CEO to take Qatar Airways to the next level; a politically-savvy, customer-led, employee-focused operation fit for the challenges of a highly demanding business environment.

“This is a worrying development for the airline’s competitors. In early July, the carrier reported its best annual results in its history with a net profit of US$1.7 billion.”

That result is from the legacy of Akbar’s airline team. At Farnborough, Al-Meer said: “We are talking about a company that has a strategy in place, and whoever takes over should continue the strategy of the company.

“We have different personalities, but at the end of the day the end result should be the same; to continue to have the best airline in the world and to have the best financial and commercial return in the industry. This is our project.”

The clichéd phrase is that only time will tell if Al-Meer can make Qatar Airways more successful, with a wider network of airline relationships and a better place to work.

As his infrequent public and media appearances demonstrate Al-Meer will do things his way, a quiet way, preferring to let the airline product do the talking with the only people that matter being customers and employees.

That’s understandable, but running a large, globally-significant airline, and one with a rich personality-led history, means Al-Meer will be a person of great interest to the media and to those in the industry with business ties to Qatar Airways.