Qatar Airways CEO Flies Off Flightpath
June 19th, 2009
Delays are one thing, lambasting them is quite another.
Akbar Al Baker’s bizarre salvo at Boeing underlines the reliance Qatar Airways has had with Airbus since its infancy and has rendered its ability to do business elsewhere a difficult task. (Click for video).
Cast your minds back to Farnborough 2006.
Qatar Airways had announced its first order for Boeing airplanes comprising 8 777-200LR’s, 9 777-300ER’s and 3 777 Freighters. At the behest of not “upsetting” Airbus, Qatar Airways demanded that Boeing rescind on its news announcement of the order. To say that the start of the Boeing-Qatar Airways relationship was not rosy is an understatement.
Al Bakers comments are simply bang out of order.
Akbar Al Baker, CEO of Qatar Airways at the order ceremony of the 787, Dubai Air Show 2007
Image copyright/owned by FleetBuzz Editorial.com
Yes, the 787 has been delayed. Let us also not lose sight of the fact that Qatar Airways is neither the biggest customer for the type or that they are the only carrier affected by the 787 delays, nor will Boeing cry should those orders be cancelled. It’s a buyers market and squandered slots will be snapped up by other carriers who also want that airplane.
The airline has had compensation too, so why “cry wolf” now?
Where was Al Bakers condemnation of this magnitude when he ordered his flock of Airbus A380’s, which are also delayed?
Deliveries of Qatar Airways A380’s were due to start this year. They won’t get them until 2012 (unless Airbus adjusts A380 rates again!). That’s a three year delay, similar to when it takes delivery of its first 787-8’s (i.e. three years later than planned).
For a devout Airbus man, his comments on the once flagship A340-600 took a 180-degree turn.
“We look forward to seeing passengers…on this [A340-600] wonderful aircraft,” said Al Baker in 2006.
Fast-forward to March 2009 and look what he says:
“If I could, I would throw them away. These [A340-600] planes are not efficient at all.“
The reality to Al Baker’s comments is that the front man for this state-owned, loss making airline is looking at any excuse to cut capital expenditure and conveniently use the 787 delays to secure his position at the helm of this “me too” Middle East airline and walk away from the deal.
Qatar Airways and its home hub of Doha has for 50 years, if not longer, played in the shadows of neighbouring arch-rivals of Abu Dhabi and Dubai. With Etihad and Emirates dominating the regions growth and traffic, the Qatari dream of usurping them is just that.
With Qatar Airways being the most heavily state-subsidised airline in the GCC region, Al Baker should think before he speaks. It is not Boeing that is run by “bean counters” - he should look to the real power wielding people at his airline and see that they are nothing but bean counters themselves - particularly since the ruling Sheikhdom sits in its place under the guard of US taxpayer money courtesy of Centcom and the Al-Udeid airbase.
Leaving all this aside, Al Baker should put his words into action if he means business. Anyone can run their mouth off pretending to be the big guy.
Just keep in mind that Al Baker has no more authority to cancel orders - or place them in fact - than Paris Hilton.
Fortunately for Boeing, they’ll be well aware that his comments at Le Bourget was solely to attract the attention of Airbus and how Qatar Airways fortunes are held to ransom by the success or otherwise of the A350XWB.
Entry Filed under: Airbus, Airbus A340-600, Airbus A350, Airbus A350XWB, Airbus A380-800, Akbar Al Baker, Boeing, Boeing 777-200LR, Boeing 777-300ER, Boeing 787, Boeing 787 Dreamliner, Boeing 787-3, Boeing 787-8, Boeing 787-9, Boeing Commercial Airplanes, Qatar Airways
24 Comments Add your own
1. Vero Venia | June 19th, 2009 at 17:18
How do you say “overcapacity” in Arabic language?
2. FleetBuzz Editorial.com | June 19th, 2009 at 17:25
Not “precise”, but similar in a contextual manner.
As-thafahza
3. Skeptic | June 19th, 2009 at 17:47
QR is an “EK wannabe”. Perhaps al Baker is a “Tim Clark wannabe”?
I have always believed that state owned airlines function as an extension of their respective foregin ministries. I suspect that the 787 order was an attempt to “throw a bone” to the U.S. to counter balance all the love shown to Airbus. I couldn’t agree with you more that any cancellation of the 787 order would take place at a level far above al Baker. He is acting within the scope of his authority when attending banquets and giving an interview in the press, but I suspect that someone else is pulling the strings WRT actually managing this airline. And assuming that what I have read is correct, i.e, they have yet to make a profit, then one can safely surmise that the “someone else” is definitely no “bean counter”.
4. boeing investor | June 19th, 2009 at 17:55
The real meat of his comments mean nothing if this SOB doesnt now cancel.
But of course, he’ll still take the awesome 777’s wont he?
WHat a fool some airline CEO’s are.
5. Chris Wallace | June 19th, 2009 at 19:08
Everybody else “negotiates through the press”, which should Al-Baker be any different?
Tim Clark shoots his mouth off every other week. One day, the “777-400ER” would be an epic addition to EK’s fleet because the A350-1000XWB is not capable of replacing his 777-300ERs. The next day, Boeing actually refreshing the 777 is pointless because it would not meet EK’s needs and Boeing really needs to launch Y3 before the A350-1000XWB surpasses the 777-300ER.
And Sir Richard is always in the paper carping about one thing or the other.
Talk is cheap, but the decisions these CEOs have made are not.
If Al Baker wishes to rant at Boeing in the press about how annoyed he is at his 787’s being late, he has the right.
But he didn’t buy them solely due to their availability. And considering he was a customer since at least July 2007, that he has stayed with that order for two years or more, through all the delays Boeing has announced, makes it pretty clear to me that late or not, he remains committed to taking delivery because he feel his airline needs them, late or not.
6. Mike M | June 19th, 2009 at 19:19
Chris
You miss the point - yes everyone critized Boeing because of the strike, the delays etc -
No one tells Boeing, least in the press, that its run by beancounters.
Mr Akbar has a problem, clearly and its not because of the 787, he says so himself in that CNN clip.
>>>If Al Baker wishes to rant at Boeing in the press about how annoyed he is at his 787’s being late, he has the right.>>>
I dont disagree.
But what I do find a problem with is his judgment on management. It has nothing to do with him and he should STFU and concentrate on his own job. Do you see Airbus/Boeing slamming their customers in the press because they cant make progress payments?
7. MPTA-098 | June 19th, 2009 at 19:54
Chris, you forgot to mention Clark has for some time demanded extra milage out of the 747-8I without even having bothered to commit to the programme
But as you correctly point out, QR/EK (etc.) have plenty of cash, and money talks, so Airbus and Boeing naturally will listen to these people, and they don’t really care what all the righteous and indignant analysts/bloggers have to say about it.
8. Leelaw | June 19th, 2009 at 21:00
“the righteous and indignant analysts/bloggers have to say about it.”
LOL. That’s an awfully cheeky quip coming from you since a high percentage of the smegma you post on this blog is dripping with self righteousness and indignation, not to mention haughty condescension. A camel only sees the other camels’ humps.
9. Vero Venia | June 19th, 2009 at 22:52
Re: 2. FleetBuzz Editorial.com | June 19th, 2009 at 17:25
I think there is a huge As-thafahza in the region.
If airlines in that region take delivery of all the orders, then load factor will drop dramatically. There will be deferrals and cancellations. It is simply unavoidable.
10. DeepBlue | June 19th, 2009 at 22:59
Think there is some posturing going on here and perhaps it was never going to be a marriage made in heaven, but Al Baker may be right to query the 787. This is an ambitious production build up and the optimistic language used by Boeing executives at a recent investor conference was as I recall, questioned by one or two.
11. Mike M | June 19th, 2009 at 23:21
>>>Think there is some posturing going on here
So why didnt Akbar say anything remotely similar when QR’s A380’s were delayed due to the wiring issues that Airbus faced?
Or doesnt that strike it as odd to even a single person?!
12. chaser | June 20th, 2009 at 02:07
Whether Baker is being unfair, unfortunate or whatever in his criticism, it is obvious that his staff are reporting to him that they are not being given satisfactory answers to questions asked.
Platitudes can only get you so far!
13. Dougloid | June 20th, 2009 at 05:40
What was it mother said about putting all your eggs in a single basket?
14. Leelaw | June 20th, 2009 at 07:32
“it is obvious that his staff are reporting to him that they are not being given satisfactory answers to questions asked.”
Perhaps, however, back in 2006 he did publicly lambaste Airbus, not his own staff, for a shocking lack of “due diligence” leading to Qatar’s decision to “commit” to the old “all-new” A350. This is a strange character apparently possessed of a mercurial personality.
15. Ed | June 20th, 2009 at 14:29
DeepBlue said in reply #10:
“Al Baker may be right to query the 787″
Does he? By the time of QR’s order for the B-787, in July 2007, Boeing had already annpunced the first delay in the program. Does anyone remember the days after the unveiling of the B-787, on 07/08/07, and the first delay announced?
I think it is humorioust that QR is publicly complaining about the B-787 program, which is perhaps the most technoglicy challenging commerical program since the B-367-80 (B-707 and KC-135 prototype) in 1953, but doesn’t say anything about the wiring problems (caused by a basic designer SNAFU) of the A-380, keeping the WhaleJet from full production.
Nor, does Mr. Baker say anything about how his own acceptance crew and the Airbus delivery crew totalled a brand new A-340-600 over a blastfence, because they were doing a 4 engine run at full power without wheel chocks installed.
Boeing would be better off leaving most gulf airlines to Airbus to deal with. Boeing has big orders on the books, and coming from Iraqi Airways to replace QR, EK, etc.
Mr. Baker, go ahead and cancel your B-787 order and stop bitching about it. I’m sure AA, UA, and DL are just waiting to snap up those early slots.
16. Chris C | June 20th, 2009 at 19:13
Mr. Al Baker mentions that Qatar Airways has 747-8s on order, in addition to the 777s and 787s. My understanding is that the 747-8s he refers to are 747-8Fs leased from DAE Capital to compliment the 777F order and provide competition to Emirates SkyCargo with their 777Fs and 747-8Fs. If not, then maybe Mr. Al Baker would care to explain what 747-8s he has on “order”? He quite clearly mentions 747-8s in the CNN interview.
17. DeepBlue | June 21st, 2009 at 09:18
When many had their heads in the clouds, Al Baker did make some strong comments about the A380 delays - will try and find them, roughly - how could it be so late and no one spotted the issues! Although his remarks were OTT about the 787 last week, it seems more delays are likley and the replies given about aircraft production build ups by Boeing executives at a recent conference, did not impress everyone in the audience.
18. MPTA-098 | June 21st, 2009 at 12:01
“Nor, does Mr. Baker say anything about how his own acceptance crew and the Airbus delivery crew totalled a brand new A-340-600 over a blastfence, because they were doing a 4 engine run at full power without wheel chocks installed.”
Blah blah blah. Say after me: Qatar Airways is not Etihad Airways, Qatar Airways is not Etihad Airways, Qatar Airways is not Etihad Airways,……………..
19. middleman | June 22nd, 2009 at 03:38
60 787? Small token of gratitude to pay for not being rendered Sadam Husein’s lowly page.
20. middleman | June 22nd, 2009 at 03:41
60 787? Small token of gratitude to pay.
21. Steve | June 23rd, 2009 at 12:20
“By the time of QR’s order for the B-787, in July 2007, Boeing had already annpunced the first delay in the program.”
You need to check your info - QR’s order was placed on 5th April 2007 according to Boeing. They should know.
22. Steve | June 23rd, 2009 at 12:22
“At the behest of not “upsetting” Airbus, Qatar Airways demanded that Boeing rescind on its news announcement of the order.”
Do you have any evidence to support this claim?
23. Steve | June 23rd, 2009 at 15:26
Well, given that Boeing has just announced the postponement of the 787’s first flight, and won’t even know when the first flight is for another four weeks, maybe Al Baker wasn’t talking out of his ass as the Boeing fanboyz here thought.
“Boeing Stock Exchange Statement
EVERETT, Wash., June 23 /PRNewswire-FirstCall/ — Boeing (NYSE: BA) today announced that first flight of the 787 Dreamliner will be postponed due to a need to reinforce an area within the side-of-body section of the aircraft.”
Reinforcement, at this point in the program? Adding even more weight to the already fat 7-late-7.
24. FleetBuzz Editorial.com | June 23rd, 2009 at 15:34
Yes, from direct talks with folks at Boeing, QR and Airbus all concerned with the deal(s) back when this order was noted and then pulled.
Feel free to email me to discuss in private
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