Qatar Airways makes order with Boeing for Dreamliners and 777-300ERs

The firm widebody orders are valued at $11.7 billion at list prices. Qatar CEO Akbar AL Baker had grown increasingly frustrated with the delay to the Airbus A320neo and had warned Airbus that the Doha airline may head to Seattle to keep the growth it needs fed by aircraft.
Announcing the deal, Al Baker said the airline’s commitment to the MAX 8 did not mean Qatar was giving up on the Airbus A320neo and has 50 on order. “For us to mitigate the risk, we had no alternative but to order the reliable 737 family of aircraft.”
It is understood the airline has walked away rom four of the 50 orders as it argues Airbus failed to live up to the terms of its contractual obligations on those aircraft.

"Qatar Airways, already one of the fastest growing airlines in the history of aviation, today announces a significant and historic aircraft order that will power our future growth for the years and the decades ahead," said Qatar Airways Group chief executive, Akbar Al Baker. "Boeing has proven to be a valuable partner, and today's announcement is testament to our appreciation of the quality of their product and their dedication to providing world class customer service."

Qatar Airways' relationship with Boeing was renewed in 2006. Since then, there have been many milestones in the partnership. The airline was the first to operate the 787 in the Middle East and is a launch customer for the 777X. With the commitment for the 737 MAX 8, it would be the first Boeing single-aisle airplane model to join Qatar Airways' fleet in more than 15 years.

"Congratulations to The Boeing Company and Qatar Airways on the remarkable milestone they've reached, which will significantly grow the number of Boeing aircraft in the Qatar Airways fleet," said U.S. Secretary of Commerce Penny Pritzker. "Beyond its importance for these two companies, this agreement demonstrates the importance of global commercial partnerships in strengthening our bilateral ties. This deal will strengthen economic opportunity and job creation, and highlights the importance of strong global trading relationships." 

"We are so very proud that a discerning and market-leading customer like Qatar Airways not only continues to endorse our current products, but  also has confidence in Boeing's new technology that will soon be evident on the 777X and 737 MAX," said  Boeing Commercial Airplanes President and CEO Ray Conner. "Our partnership with Qatar Airways has grown and strengthened tremendously over the years and I look forward to the time when its fleet will feature an increasing number of both our single and twin-aisle airplanes."

Analyst Saj Ahmad commented on the orders: “Qatar Airways selection of 30 787-9s and 10 777-300ERs underlines its commitment to its organic expansion that has been unlocked ever since it moved to its new expanded hub at Hamad International Airport.

“As one of the biggest 787 operators, the natural fit of the 787-9 will certainly raise questions over the balance of its orders for the A350-900 and A350-1000, particularly when the 787 fleet has arguably one of the best in-service dispatch reliability rates of any airplane.”

Ahmad added: “Coupled with the fact that Qatar Airways has 10x 777-8s and 50x 777-9s with 40 remaining options in the bank, the airline has not been afraid to put money where its mouth is to show its displeasure at the slow progress on the A350 over at Airbus. 

“Boeing’s firm grip on program execution now on the 787 meant that exercising the 30 options it had was never in doubt. Indeed, the 787-8 fleet for Qatar Airways has become a backbone for its long haul operations and new route openers as well.

“But by far the biggest impact here of this new order is the commitment for 60 Boeing 737 MAX 8s. This is a direct rival to the A320neo, the same jet which the airline has thus far refused to take delivery of due to concerns about the GTF engines.”

“Not only will Qatar Airways become another exclusive GCC operator of the 737 alongside stalwart flydubai and Oman Air, it will be able to rely on the legendary reliability of CFM International’s engines – indeed, flight testing of the LEAP-1B on the 737 MAX has been an absolute breeze, expediting the way for Boeing to hopefully deliver the first airplane earlier than planned in the spring of 2017,” said Ahmad.