Oneworld boost its world market share with Qatar Airways

DOHA- The official membership of the Gulf carrier Qatar Airways can be considered as a historical event for the entire air transport industry and of course for the global alliance oneworld. For the first time, a Gulf carrier is integrated into an alliance, an event which is likely to influence relations between the two remaining alliances –Star and Skyteam- and the two other Gulf air giants, Etihad and Emirates. Although as ironically underlined by Qatar Airways CEO Akbar Al Baker, “the best Gulf carrier is already gone”!

Explaining the choice of oneworld, Mr. Al Baker explained that Qatar Airways looked at joining the best alliance in the market and the one bringing the most value to the carrier. “We also appreciate the flexibility that oneworld provides to its members in terms of commercial strategy”, said Qatar Airways CEO.

Beyond Mr. Al Baker’s witty comment, Qatar Airways is effectively a new dimension to oneworld in the region as well as in Asia and in the Middle East. “Qatar Airways increases oneworld RPK (Revenue Passenger/km) in the three important regions of Northern Africa, the Middle East and South Asia by 55%”, explained Bruce Ashby, oneworld CEO. "It is true that we are the smallest alliance with only 13 members. But we are now tracking our largest competitors. With the integration next year of Sri Lankan, TAM and probably US Airways –if its merger with American Airlines is approved by US regulatory authorities- oneworld will generate US$ 140 billion in annual revenues, serving almost a thousand airports in more than 150 countries and carrying close to 480 million passengers per year”, added Mr. Ashby.

Most importantly, oneworld’s expansion strategy is all about quality. Which means that the alliance looks at serving premium passengers on premium routes. “These are the routes serving the 100 top business cities which generate 80% of all revenues of the industry”, explained oneworld CEO. Qatar Airways is adding one percent market share to oneworld positioning on these 100 top business cities. All combined, the alliance will have over 35% market share in total revenues generated from those routes by next year, according to data from IATA.

Strategically, oneworld gains with Qatar Airways 21 new destinations in five countries but also a new set of connections between Asia and the rest of the world. “With Sri Lankan joining next year, both Qatar Airways and Sri Lankan will help us becoming the leading alliance in the Indian sub-continent,” told Bruce Ashby.

Qatar Airways own expansion strategy is also a major asset of oneworld’s attraction. “2014 will be another major milestone for us with the delivery of the first Airbus A380 and A350 to our fleet as well as the opening of our new hub in Doha, the Hamad International Airport. And I can promise you that we will offer the best possible airport in the world for 25 and then 50 million passengers”, stressed Akbar Al Baker. Qatar Airways and Doha are certain to generate then further buzz around the world. Certainly, another good advertising for oneworld!

Sourced: TravelDailyNews