Qatar Airways to Introduce First Class, Seeking New Planes from Airbus and Boeing

• Al Meer announced that the Gulf carrier has submitted a Request for Proposal to both Boeing and Airbus for a significant new aircraft order.

As part of a strategic overhaul led by new group CEO Badr Mohammed Al Meer, Qatar Airways is working on a new First Class concept and seeking aircraft orders from major aviation companies Boeing and Airbus.

Qatar Airways CEO Al Meer announced changes at the airline following a multi-month review, which he unveiled on Thursday. As the former chief operating officer of Hamad International Airport, Al Meer took over from Akbar Al Baker in November and aims to revitalize the airline's strategy and rebuild supplier relationships.

Qatar Airways is currently working on a new high-yielding First Class concept for its cabins, as confirmed by Al Meer to CNBC.

"He stated that he wanted to create a unique flying experience by combining the commercial and private jet experiences. He is currently 70% to 80% ready and is finalizing colors and small details. He hopes to announce it soon."

Premium seating on aircraft is typically more spacious, of higher quality, and comes at a higher cost. However, some airlines have opted to eliminate, reduce, or rebrand First Class seats in order to maximize aircraft space and provide more affordable seating options for budget-conscious travelers.

Qatar Airways is redesigning its premium "Q-Suite" class of seats and will debut the latest offering at the Farnborough International Airshow in July, along with preparing its First Class proposal.

New orders

Al Meer stated that the Gulf carrier has submitted a Request for Proposal to both and for a "large" new aircraft order.

"He stated that they issued an RFP to encourage competition among suppliers, but did not reveal any further details. "We will proceed with the process and need to be cautious given the size of the order," he added."

To increase its service offerings and capitalize on the momentum generated by the Qatar World Cup, which contributed to a record net profit of $1.21 billion in the fiscal year 2022-23, as well as the highest yields and load factors in its history, Al Meer is looking to enhance its service offerings.

Al Meer stated that the markets he wants to expand into include China, India, Australia, Japan, Korea, and a few others.

While regional demand for flying is high and passenger numbers have increased by more than 30% in the last four months, forecasting growth is likely to remain "more settled below 10%-15%" for the rest of the year.

The new aircraft order proposal is being made by Qatar Airways in the aftermath of a major legal dispute with Airbus over safety concerns related to paint degradation. Additionally, it comes at a time when Boeing is facing a crisis of confidence following the Max 9 door blowout in January, which raised questions about safety, quality controls, and production and delivery delays.

""Our aircrafts not being delivered on time affects us, but we trust Airbus and Boeing to overcome their problems," Al Meer stated."

Boeing is confident in its ability to produce safe planes, as Al Meer expects to receive Qatar's latest Boeing 777X order by the end of next year.

Al Meer stated that Qatar Airways would not immediately phase out the Airbus A380, as previously planned, and Emirates also indicated that it would retain the airliner, despite Airbus ending production in 2021.

Next steps

Al Meer has addressed criticism about the airline's workplace practices by relaxing a controversial night curfew rule for cabin crew and reversing a long-standing ban on Qatar Airways staff sharing workplace pictures on social media.

"Al Meer stated that it was evident that modifications were necessary, and the airline's goal was to be the preferred choice among staff."

Qatar Airways is facing renewed pressure from rival Gulf carriers and upstarts as it updates its strategy, with Emirates, Etihad, and Saudi Arabia's Riyadh Air among the competitors.

"Riyadh Air will have to compete with the best of the best due to the pressure of competition, as Al Meer stated."

His successor plans to transform the airline into a new era, "Qatar Airways 2.0," and has not ruled out the possibility of an initial public offering.

He stated that while it's possible to consider going public in the future, the decision ultimately rests with Qatar Airways stakeholders and the Qatari Government.