Jun 13 2006 |
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Qatar industry: Qatar Airways may reconsider deal to buy Airbus A350
COUNTRY BRIEFING
FROM THE ECONOMIST INTELLIGENCE UNIT
The chief executive officer of the partly state-owned national carrier Qatar Airways, Akbar Al Baker, suggested in a late May interview with Reuters that his airline might reconsider its decision to purchase the Airbus A350. The suggestion came in the wake of an Airbus announcement that it would be making changes to the design of the A350. The details of those changes will not be available for two months, according to Airbus, but industry analysts speculate that the changes might include the widening of the fuselage in order to create a plane better able to compete with the Boeing 787. Mr Al Baker indicated to Reuters that part of the issue for his company was the potential for delays in deliveries if Airbus is making fundamental changes. Industry speculation is that a new design could slow the start of deliveries by as much as two years.
Qatar Airways had announced at the 2005 Paris Airshow that it intended to purchase 60 of the A350 aircraft, with deliveries due to take place between 2010 and 2015. The total value of the deal has been estimated at US$10bn.
Expansion of the Qatar Airways’ fleet and list of destinations is a part of the Qatari government’s wider strategy to promote tourism into the country. A two-year delay in the acquisition of such a large number of aircraft could seriously affect those plans. Among the options for Qatar Airways is the selection of the Boeing 787. Qatar Airways currently operates an all Airbus fleet. But the airline has signalled that it is open to the purchase of Boeing planes.
SOURCE: Business Middle East
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