New Love Story: Boeing 747 And Qatar

Summary

  • Qatar Airways ordered two Boeing 747-8Fs and four Boeing 777-300ERs as expected.
  • Boeing 747-8F order fits airline's cargo aspirations.
  • More orders for the Boeing 747-8F could follow if the market continues to show favorable growth.

While Qatar’s isolation has not yet been completely lifted, the country has recently taken delivery of jumbo jet freighters. This is one of the most recent occasions of Qatar’s muscle flexing, but the acquisition of a pair of jumbo jet freighters does make sense. In this article, I will have a look at the acquisition of the freighter jumbos as well as some other events of Qatar’s muscle flexing.

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I expected a rather quick normalization in the political ties between Qatar and its neighboring countries. This, however, did not happen which makes it interesting to place some recent events regarding Qatar Airways into context.

Since the Qatar crisis started, there has been a whole lot of muscle flexing from Qatar’s CEO Al Baker, where he even expressed his disappointment in President Trump and that shows how high the tension really is.

Airbus A350 cancellation

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In July, Qatar Airways cancelled four out of tens of Airbus (OTCPK:EADSF) A350 aircraft it had on order with the European jet maker. Al Baker initially denied that Qatar Airways canceled orders for the Airbus A350-900, but June's order tally for Airbus took away any doubt and showed that four cancellations for the Airbus A350 were added, which can be attributed to Qatar Airways.

Airbus also confirmed the cancellation citing "known supply chain issues" as the reason for the cancellations and mentioned that the four aircraft will be reallocated. The four aircraft have a combined catalog value of $1.2B and represent less than 1% of the A350 order book. In March, Qatar Airways had leased four aircraft from LATAM, an airline in which the Qatar airline is invested in.

In the newest chapter to Qatar’s Airbus A350 book, the airline seems to have decided to take delivery of the four aircraft later this year. This leaves many question

This article was written by

Dhierin Bechai profile picture
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Dhierin is a leading contributor covering the aerospace industry on Seeking Alpha and the founder of The Aerospace Forum. With his Aerospace Engineering background he has a more indepth knowledge about aerospace products enabling him to cover a complex niche. Most of his reports will be about companies in the aerospace industry or airlines industry, comparing products and looking at market forecasts providing investors with unique and thorough insights. Dhierin has accumulated nearly 20 million views never failing to spark healthy and thoughtful discussions for investors and aerospace professionals.

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