Doha, Qatar: Qatar Airways is in the final stage of an equity investment in an airline in southern Africa, as the state-owned airline drives its expansion on the continent.
Speaking during a panel discussion titled "Connecting the Middle East and Africa" at the Qatar Economic Forum yesterday, Qatar Airways Group CEO, Engr. Badr Mohammed Al Meer, said: "We are at the final stage of an equity investment in an airline in the southern part of Africa. This airline will help us complement the operation of Kigali as a hub.”
Engr. Al Meer explained that the deal would be announced within two to three weeks. Although he did not disclose the target of Qatar Airways' equity stake investment, he mentioned that southern Africa has only two or three airlines to choose from.
He noted that the state-owned airline has a vast network in Africa, serving more than 30 destinations. "Our model is to cover the whole continent of Africa. However, we need to look at certain areas within the continent. I'll give you an example: our network in the north and west of Africa is growing organically. For example, we fly to four cities in Nigeria, and we have a successful partnership with Royal Air Maroc. When it comes to the eastern part of Africa, we also grow organically. The only missing element in this equation, covering the whole of the continent of Africa, is central Africa and the southern part of Africa," he said.
He further explained: "When it comes to Central Africa, we couldn't find any better partner or any better location than the center to create or to build a hub for us and our partners other than Kigali. This is where we started working with RwandAir and the government in Kigali to build an airport and infrastructure that can cater to the requirement of building a hub within the central part of Africa. With this, RwandAir will help us connect people from other parts of Africa to Kigali so we can take them all over the world."
In 2019, Qatar Airways acquired a 60% stake in a new $1.3 billion international airport being built in Rwanda and has codeshare agreements with several airlines in Africa, including RwandAir.
RwandAir CEO, Yvonne Manzi Makolo, highlighted that Africa has a total of 1.4 billion people, representing 16 to 17% of the global population, yet African airlines carry only 2% of global air traffic.
"That tells you what the potential is. There are a lot of challenges, whether it's the cost of operations, infrastructure challenges, the issue of open skies, or skilled resources. But they are also opportunities for African and international airlines to tap into. The key is to connect the African countries, which is what RwandAir is really focused on—connecting Rwanda to the rest of the African countries and then connecting the African continent to the rest of the world. We do that very well with Qatar Airways," she said.
Qatar Airways 2.0
Engr. Al Meer also disclosed that Qatar Airways has entered the next phase of its development, known as "Qatar Airways 2.0," with a focus on optimising its commercial operations, assessing the profitability of certain routes, and its fleet composition.
The Group CEO highlighted the need to streamline the airline's fleet. "Qatar Airways has seven, eight different type of aircrafts within the fleet, we are looking now how to reduce the number the type of aircrafts."
He further elaborated on the diversity within their fleet including Airbus A320, A330, A350, and A380, and in Boeing, 737, 777, and 787 families. Engr. Al Meer revealed that the state-owned airline has issued a tender to both Boeing and Airbus with the aim of consolidating its fleet, ensuring consistency in passenger experience, and improving operational efficiency.
Commenting on the air travel demand in the Middle East, Engr. Al Meer noted a significant increase in passenger numbers. "Last year, we experienced a 30% growth in the number of passengers, and from January 1 to May 14 this year, we have already seen a 27% increase," he revealed.
Engr. Al Meer who assumed office in November last year also said that that internal discussions are taking place where officials are planning a strategy for the company for the next 15 to 20 years.
He also highlighted the airline's high load factor, averaging between 85% and 88% across its network. "This high load factor indicates a strong desire among people to travel and fly," he concluded, emphasising the resilience and growing demand in the aviation sector.
"Qatar Airways 2.0 was about creating a culture of empowerment, a culture of trust within the company, to allow our management, our staff to stand up [and] give their opinion, try to implement their ideas and of course to continue to be the best airline in the world, to continue to raise the benchmark, to continue to exceed the expectation of our customers, and to be the employer choice in the industry."
Commenting on the air travel demand in the Middle East, Al Meer noted a significant increase in passenger numbers. "Last year, we closed at an increase of 30% in the number of passengers, and from January 1 until May 14, we see 27% increase in the number of passengers."
He also highlighted the airline's high load factor, averaging between 85% and 88% across its network, "which is very high, which proves that the people want to travel want to fly," he said. A high load factor means that the airline's aircraft are full, with most of the seats being occupied by passengers.
