Award-winning, controversial: The airline Qantas wants stopped

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Award-winning, controversial: The airline Qantas wants stopped

By Michael Gebicki

Among several factors that have led to the premature retirement of former Qantas CEO Alan Joyce was the airline’s opposition to Qatar Airways’ bid to increase its flights into Australia. Despite support from the tourism industry, state tourism organisations, consumer advocates and Qatar’s partner airline Virgin Australia, the federal government blocked the bid, appearing to prioritise the demands of national carrier Qantas over the national interest, and now both are licking their wounds over the decision. Here’s what you need to know about Qatar Airways.

A capsule history

Akbar Al Baker (right), CEO of Qatar Airways, sits in the business class cabin inside the airline’s first Airbus A380.

Akbar Al Baker (right), CEO of Qatar Airways, sits in the business class cabin inside the airline’s first Airbus A380.Credit: Bloomberg

Founded in 1993 and commencing operations the following year, Qatar Airways is the flag carrier for the state of Qatar, an independent emirate on the Persian Gulf that borders Saudi Arabia and whose capital is Doha. Among its earliest acquisitions were two Airbus A300-600R aircraft leased from Ansett Worldwide Aviation Services in 1997. That same year Akbar Al Baker was appointed chief executive, a position he holds today, making him the longest-standing CEO of any major airline, and one of the aviation industry’s most recognisable figures.

Services to Australia commenced in 2009 when the airline began flights into Melbourne. Two years later Qatar Airways was flying to more than 100 destinations on six continents. During the pandemic the airline received a $US2 billion ($3.14 billion) bailout from the Qatari government. Despite a slowdown, the airline never operated to fewer than 30 destinations, including Australia, during the pandemic, maintaining a wider network than many of its competitors. Today the airline’s fleet consists of 226 aircraft.

Who owns Qatar Airways?

The Qatari capital of Doha.

The Qatari capital of Doha.Credit: iStock

The Qatari government. Under a buyout in 2013, the 50 per cent of the airline in private hands was transferred to the government. The government has deep pockets. Its sovereign wealth fund is the Qatar Investment Authority, founded in 2005 to manage the country’s abundant oil and gas revenues. In September 2023, the QIA has an investment portfolio estimated at $US475 billion, equal to $US1.44 million for every Qatari citizen.

How good is Qatar Airways?

Since it was first named Airline of the Year at the annual Skytrax World Airline Awards in 2011, Qatar Airways has seldom been far from the airline awards’ podium. At the 2023 Skytrax Awards, World’s Best Airline went to Singapore Airlines with Qatar runner-up. Over the past decade, the two airlines have had a virtual stranglehold over that award, with Qatar winning the previous three years in a row, with seven wins in total. At the 2023 awards Qatar Airways also won top place for World’s Best Business Class, coming second to Japan Airlines for World’s Best Economy Class.

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Qatar’s award-winning business class seats, the Qsuites.

Qatar’s award-winning business class seats, the Qsuites.

Unlike its United Arab Emirates competitors Emirates and Etihad, Qatar Airlines does not offer premium economy seating. In June 2023, Al Baker announced that the airline would no longer offer a first-class cabin after it retires its existing fleet of A380s. What Qatar Airlines does better than just about every other airline is business class.

The reason is its Qsuite cabin, launched in 2017 and described by Al Baker as a “first-class experience in business class”. Qsuite cabins feature a business-class seat that turns into a double bed for couples, with privacy panels that close to create a “room”. This comes on top of Qatar’s “dine on demand” service, allowing business flyers to choose mealtimes, and a wake-up express breakfast for those looking to max out their sleep time. In late August 2023 Qatar Airways hinted at a new version, Qsuite 2, that promises to lift the business-class stakes even higher, with details yet to be revealed.

Blue skies ahead

Rapid growth is projected. During the Arabian Travel Market conference in Dubai in May 2023, Al Baker outlined plans to expand the airline to 190 routes from the current 170, with up to 250 routes on the horizon. That depends on the delivery of new aircraft.

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Following a legal stoush over paint-skin deterioration affecting Qatar’s Airbus A350s, which ended in an amicable settlement in the High Court in London in February 2023, the airline reinstated its order for 23 long-range Airbus A350-1000s and 50 A321neos. The first of those A350s arrived in May 2023, with the first of the A321neos scheduled to arrive in 2026.

In July 2023, the airline began taking delivery of nine Boeing 737 Max 8 aircraft which were originally destined for Russia’s S7 Airlines, an order frustrated by sanctions. Qatar Airways has another 25 Boeing 737 Max 10 aircraft on order, with deliveries expected from 2025.

Female passengers’ strip search generates huge negative publicity

In October 2020, 13 Australian women were removed from a Qatar Airways flight at the country’s Hamad Airport, taken to waiting ambulances and some of them stripped and subjected to invasive gynaecological examinations. It was a terrifying and humiliating experience and the women reboarded the aircraft in a state of acute distress. A newborn baby had been found alive, dumped in a waste bin in one of the airport’s toilets. According to a Qatari government statement, the discovery prompted an “immediate search for the parents, including on flights in the vicinity of where the newborn was found.”

Faced with worldwide outrage, the Qatari government promised a “comprehensive, transparent investigation” into the incident, saying it would share the results with other countries. The most visible outcome of that investigation has been a suspended jail sentence given to an airport official.

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Early in 2023 commercial law firm Marque Lawyers launched a $10 million lawsuit against the Qatari government on behalf of five of the Australian women who were strip-searched. Filed in the Federal Court, the lawsuit originally named the Qatar Civil Aviation Authority and Qatar Airways, and later the Qatar Company for Airport Operation and Management. The Qatar Civil Aviation Authority is claiming sovereign immunity.

The incident has been cited by some as a reason why Qatar Airways should not be allowed to expand its operations in Australia. According to Qatar Airways, neither the airline nor the aircraft’s crew were told what was about to transpire when an armed security team boarded the aircraft and removed the women. Nor were they in a position to overrule them. When the women reboarded, the entire crew including the captain were reportedly shocked and appalled by what had transpired.

What are airline slots?

An airline slot is an agreement allowing an airline to operate flights to a particular airport at a specific time and day. Slot allocation only exists at level 3 airports, where the demand exceeds the airport’s infrastructure capacity, and so stricter management via slots is required (this is particularly an issue at Sydney Airport, due to its curfew). Airline slots are allocated by the International Air Transport Association (IATA) according to the Worldwide Airport Slot Guidelines.

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National bodies also have powers to affect slot allocation, for example where the national interest overrides the needs of a particular airline. That has been used by the Australian government to justify its decision to deny Qatar Airways’ application for expanded flights into Australia.

The extra capacity aboard those additional flights would have exerted downward pressure on international flight prices. Since that ran contrary to its interests, Qantas opposed the additional Qatar Airways flights and the government blocked the application. That decision is now the subject of a Senate inquiry.

While IATA does not sell slots, airlines can trade them. In 2016 Oman Air paid $US75 million to Air France/KLM for a set of slots at London’s Heathrow. Under normal operating conditions, the “Use it or lose it” rule applies. Airlines are required to use at least 80 per cent of their allocated slots, otherwise they risk losing them to other airlines. Since they’re a valuable commodity, an airline will sometimes operate a “ghost” flight, with fewer than 10 per cent of seats filled, simply to keep its slot.

Qantas has recently been accused of hoarding slots at Sydney and Canberra airports, cancelling flights that it could not operate economically and blaming weather or other factors beyond its control, enabling the airline to keep those slots.

correction

This article has been updated from an earlier version. Marque Lawyers, not Gilbert + Tobin, are representing the Australian women in the lawsuit. And the Qatar Civil Aviation Authority, not the Qatar government, is claiming sovereign immunity.

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