Qatar Airways mulls launch of budget carrier

LOW COST: Qatar Airways would launch a budget carrier to fend off competition from rivals, Al Baker said.

Doha-based Qatar Airways may launch a budget carrier to fend off competition from rivals, its chief executive said on Wednesday.

Akbar Al Baker said the airline was currently contemplating setting up its own low-cost carrier in the face of increasing competition from the region budget carrier sector, UAE daily Emirates Business 24/7 reported on Thursday.

“Launching a low-cost carrier is becoming a fashion now and we may soon join the fashion too… we will not be tying up with any low-cost airline. If the influx of low-cost carriers into the market is going to hurt my market share, yes, we will launch our own low-cost carrier,” Al Baker said, the newspaper quoted.

Currently there are three budget carriers that operate out of Qatar, including Sharjah-based Air Arabia, India's Air India Express and Bahrain Air.

“A low-cost is not really low-cost in our region. And the model does not actually work in our region. But we will have to do something if my market share is hurt," Al Baker said.

"Personally, I am still against the idea of a low-cost carrier. But joining the bandwagon would not be because I am for the idea."

The move comes close on the heels of Dubai government's recent decision to set up a budget carrier to operate out of Dubai, which is expected to launch within 12 months with assistance from Emirates.

RELATED: Dubai to launch low-cost airline

Qatar Airways will also start hedging fuel for the first time within a month's time, in a bid to beat rising oil prices, the newspaper said.

Qatar currently has 200 aircraft worth $30 billion on order to be delivered by 2017, including A380s, Boeing 777s, 787s and A350s.

Qatar currently operates 62 aircraft which will grow to 70 by the end this year. The fleet will be expanded to 110 within five years.

The carrier is also investing over $12 billion in a major expansion of its international airport. The airport is due to open in 2010 with a capacity of 24 million passengers a year, rising to 50 million from 2015.

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