Qatar Airways to launch First Class, as airline courts Airbus and Boeing for new planes
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Qatar Airways is developing a First Class concept and pursuing aircraft orders from aviation giants Boeing and Airbus, as part of a broader strategic overhaul under new group CEO Badr Mohammed Al Meer. "This is a new era," Al Meer told CNBC on Thursday, unveiling changes at the airline that follow a multi-month "war room" review. Formerly the chief operating officer of Qatar's Hamad International Airport, Al Meer took over from long-time predecessor Akbar Al Baker as Qatar Airways CEO in November and seeks to refresh the airline's strategy and reset supplier relationships. Al Meer confirmed to CNBC that Qatar Airways is now developing a high-yielding First Class concept for its cabins. "We wanted to combine the experience of flying commercial and flying on a private jet and develop something new," he said. "We are 70% to 80% ready. We are only finalizing colors and small touches, but hopefully we will be able to announce it very soon." First Class seating typically offers a more spacious, premium quality and higher cost experience aboard an aircraft. Some airlines have abandoned, reduced or rebranded First Class seats in a bid to maximize aircraft space and offer more economic seating for budget-conscious travelers. Along with preparing its First Class proposal, Qatar Airways is redesigning its premium "Q-Suite" class of seats, and the latest offering is set to debut at the Farnborough International Airshow in July.

New orders

The Gulf carrier has also submitted a Request for Proposal to Boeing and Airbus for a "big" new aircraft order, Al Meer said. "We released an RFP to create some competition between both suppliers," he noted, without disclosing specifics. "We will go through the process, and, with an order this big, we need to take our time." Al Meer wants to enhance the service offering and capitalize on momentum following the Qatar World Cup, which helped the airline deliver 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. "The markets that we want to grow in are China, India, Australia, Japan, Korea, and a few others," Al Meer said. He separately flagged that regional demand for flying is high, and passenger numbers had picked up by more than 30% in the last four months, while forecasting growth is likely to "be more settled below 10%-15%," for the rest of the year.

A Qatar Airways Boeing 777 In New York. Leslie Josephs | CNBC

The new aircraft order proposal follows a major legal dispute between Qatar Airways and Airbus over safety concerns caused by paint degradation. It also comes amid an ongoing crisis of confidence at Boeing after the Max 9 door blowout in January raised concerns over safety, quality controls and production and delivery delays. "We are affected when our aircrafts are not being delivered on time," Al Meer said. "I know Airbus and Boeing have certain problems. We have full trust in both organizations and they're strong enough to overcome those problems." Al Meer noted he expects to receive Qatar's latest Boeing 777X order by the end of next year, adding he's "110% confident" Boeing makes safe planes.

Al Meer also said Qatar Airways would halt Al Baker's plans for a fast "phase-out" of the flagship Airbus A380. Rival Emirates also signaled it would hold onto the airliner, despite Airbus ending its production in 2021.

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