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Qatar Airways Joins oneworld on 30 October 2013

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Oneworld will hold an event announcing a "significant membership development" on 8 October, coming amidst widely-reported discussions with Qatar Airways about joining the alliance.

The event will be held in New York and includes Bruce Ashby, chief executive of Oneworld, Tom Horton, chairman and chief executive of American Airlines, and Willie Walsh, chief executive of International Airlines Group (IAG), according to documents obtained by Flightglobal.

Qatar has been linked to joining one of the big three alliances in the near future.

Snagging the Doha-based carrier would be a coup for Oneworld. It be the first of the big three alliances to include one of the major Gulf airlines and would ratchet up pressure on SkyTeam and Star to forge partnerships with either Emirates or Etihad.

Oneworld already includes Royal Jordanian as a member and SriLankan Airlines is slated to become a member in late 2013.

Qatar declines to comment on whether it is joining Oneworld.

http://www.flightglobal.com/news/articles/oneworld-to-announce-new-member-qatar-expected-377073/

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This is going to be awkward...

 

What are AB and QF going to do with their partnerships with EY and EK respectively?

Nothing. It probably will have little significance on their current partnerships. MH currently have a partnership with EY.

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Qatar allies with Oneworld

 

 

Qatar Airways plans to join the Oneworld alliance within the next 18 months, after being elected as a member designate by the alliance's other members.

 

The Doha-based airline will be the alliance's 15th member, including fellow member designates Malaysia Airlines and SriLankan Airlines, and second in the Middle East after Royal Jordanian.

 

Qatar's entrance into Oneworld could raise pressure on the Persian Gulf's two other major unaligned carriers, Emirates and Etihad. Etihad has recently signed a codeshare deal with Air France and KLM, both SkyTeam members. Emirates has remained outspoken as an opponent of the three global airline alliances.

 

Qatar chief executive Akbar Al Baker made the announcement with other Oneworld member airline chief executives in New York today.

 

"Alliances are playing an increasingly important role in the airline industry today--and that will continue long into the future," he says. "Qatar Airways has carefully reviewed its strategic options and it is very clear that joining Oneworld is by far the best way forward."

http://www.flightglobal.com/news/articles/qatar-allies-with-oneworld-377394/

 

 

 

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yes! Qatar airways is so much better than Emirates in terms of service. a true 5 star carrier...

 

MH already has codeshare arrangements with QR.

Edited by Izanee

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QR only flies into Melbourne, if I remember correctly. They could code-share with MH from KUL into SYD, BNE, AKL, ADL and PER.

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What an intersting development in aviation history nowadays:

 

QR (OW) + BA (OW)

 

EK (unaligned) + QF (OW)

 

EY (unaligned) + AFKL/AZ (ST) + AB (OW).

 

And BA is sponsoring QR's entry to OW........Now how do we see EK+QF alliance? OW lost KF, gain QR. Now if we can push EY into Star Alliance.......

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QR only flies into Melbourne, if I remember correctly. They could code-share with MH from KUL into SYD, BNE, AKL, ADL and PER.

 

They also fly to PER, since a month ago I think :clapping:

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now what does it mean for MH?

MAS will cease all flights to all of Europe with the exception of LHR and AMS. Affected passengers on the canceled routes (CDG, FRA) will all be routed via DOH on QR, similar arrangement as QF/EK but we're way better because both of us (MH and QR) are gonna be in the same alliance, whereas QF is whoring itself out to an enemy. LHR is kept because demand is still there and also for prestige reason while AMS is not getting cut either as their partnership with KL is working fine.

 

With our partnership with QR, we (MAS) will be flying to more European cities than ever! Well, kind of anyway by placing our MH code on all of QR Europe bound flights. And soon we will both become official OneWorld Partners and our passengers can earn Enrich miles on all QR flights, be it on a QR or MH code as long as the flight is operated by QR.

 

MAS will also cease flying into LAX as well as AKL. All LAX bound passengers will now be routed either HKG (c'mon, CX got so many flights to LAX) or NRT (on JL). AKL bound passengers on the other hand, can choose to connect in either MEL or SYD.

 

So there you go, no wonder AJ said all of MAS 772ER will be gone in 3 years time :p Silly me. Thinking it is a wise choice to refurbish their 772ER now. I guess they really have no reason to invest more money on their 772ER now.

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yes! Qatar airways is so much better than Emirates in terms of service. a true 5 star carrier...

 

I agree! QR staff are a lot more consistent. IMO the area that they need to work on is the transit in Doha, hopefully the new airport won't get delayed again.

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MAS will also cease flying into LAX as well as AKL. All LAX bound passengers will now be routed either HKG (c'mon, CX got so many flights to LAX) or NRT (on JL). AKL bound passengers on the other hand, can choose to connect in either MEL or SYD.

If they do that, they may as well pull out of NZ altogether and pax will be diverted to SQ/TG. When MH was using DC-10 to AKL donkey of years ago, because DC-10 was not capable of flying direct, there was a stop over at BNE. They could stop at BNE as they already have the rights to. As soon as you put a stopover between KUL-AKL, they will loose customers.

 

So there you go, no wonder AJ said all of MAS 772ER will be gone in 3 years time :p Silly me. Thinking it is a wise choice to refurbish their 772ER now. I guess they really have no reason to invest more money on their 772ER now.

This could be the very reason why nothing has been done to the 77E... not even new swooshie livery on the type yet!

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http://dohanews.co/post/33221762135/american-airlines-pilots-picket-qatar-airways-entrance#axzz28gpw4Xyc

 

Though Qatar Airways received a red-carpet reception from the oneworld alliance that it joined yesterday, not everyone welcome the national carrier into the club with open arms.

A handful of pilots from American Airlines turned up at the event to protest QA’s membership, saying it will hurt them at home.

USA Today reports:

American’s pilots, however, aren’t happy about the deal. They are in a nasty contract dispute with the company as it restructures in federal bankruptcy court. They picketed Monday’s event saying partnerships like the new one with Qatar are costing them jobs.

“It’s cutting in on our flying and our jobs,” AA Capt. John Diacsuk tells AP’s Mayerowitz. “How do you maintain morale at a company where everybody is getting pink slips.”

Meanwhile, reaction to QA’s entrance into the alliance has been mixed in Doha, with most frequent-fliers just wanting to know how this will affect them.

Only time will tell, though some analysts say this could lead to a jump in local airfares.

Thoughts?

 

 

Read more: http://dohanews.co/post/33221762135/american-airlines-pilots-picket-qatar-airways-entrance#ixzz28mkND8ki

 

 

 

 

 

I agree! QR staff are a lot more consistent. IMO the area that they need to work on is the transit in Doha, hopefully the new airport won't get delayed again.

 

the airport will be open next year 2013

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If MH wants to be a serious player, they need to keep flying to CDG, AMS and FRA on a daily basis. Secondary European cities can be code-shared with QR from DOH but MH needs to fly to DOH first. AKL will always be there as MH is the only direct link between Malaysia and New Zealand.

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AKL will always be there as MH is the only direct link between Malaysia and New Zealand.

 

Agreed, but seriously who else would care? Only Malaysians living in NZ will find this convenient. Transit in KUL for other domestic MH link is really convenient. Especially for East Malaysians. Other than that, there is very little importance or having plenty of business pax. or else Air NZ would already inked down a code share agreement with MH rather than relying on SQ which involves a transit through SIN.

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Agreed. Besides, if AKL is to stay simply because MAS is the only direct link between Malaysia and New Zealand, then there are many other routes such as South Africa, Italy, Switzerland etc. that MAS shouldn't had cut last time.

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Not sure why BA plan to have a codeshare with QR when their Australia destination very limited(daily MEL, 3weekly Perth) compare to CX or MH. Don't think within a year they can suddenly serve SYD/BNE/ADL with daily service.

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http://edition.cnn.com/2012/10/08/business/quest-air-alliances/index.html?iref=allsearch

 

Airlines of the gulf: Shaking up the skies

 

By Richard Quest, CNN

October 9, 2012 -- Updated 0019 GMT (0819 HKT)

 

Editor's note: In this analysis piece,

Quest Means Businesspresenter Richard Quest examines the air industry's alliances. You can follow Richard Quest, CNN's foremost international business correspondent, on Twitter. You can watch Quest Means Business on CNN, 1800pm GMT weekdays.

London (CNN) -- Trust the carriers of the Persian Gulf to cause mischief again. Having already destroyed the economics of the cosy international airline world, previously dominated by the European airlines, now the gulf carriers seem set to mess up the airline alliances too.

All the major European airlines are now part of one of the three big alliances. There is Star (the biggest) based around Lufthansa and United Airlines; Skyteam based around Air France/KLM and Delta; Oneworld based around BA and American Airlines.

The gulf airlines have until now eschewed the alliances. Firstly because competitively the alliances didn't want them, and secondly because they were growing very nicely, thank you, without them.

The reality is the three gulf carriers, Emirates, Qatar and Etihad are forces with which to be reckoned. Strategic investments by co-operative governments have given them large fleets and huge airports. They have created a flourishing environment while established carriers languish.

Where London, Paris and Frankfurt were the traditional change-hubs, today Dubai, Doha and Abu Dhabi are perfectly placed at the crossroads of east and west. They are able to open up vast new markets in the Indian and Asian continent, as anyone who has been in those airports in the middle of the night can see.

Over the past year the gulf airlines have expanded their investments and routes and in doing so are slowly disrupting, some say destroying, the airline alliances. It is oneworld that is feeling the effects most.

First, James Hogan's Etihad bought an equity stake in Air Berlin, a oneworld member. That deal raised eyebrows but it is workable within the alliance. Then, rival Tim Clark's Emirates set up a 10-year partnership with Qantas -- another oneworld member -- which will clearly have major implications on relations with other alliance members such as BA and Cathay. But everyone put a brave face on it.

Today Akbar Al Bakar's Qatar Airways joins oneworld and comes within the fold. So, all three gulf carriers are now, in some shape or form, in bed with oneworld airlines.

That would be confusing enough, but now another nail has been hammered into the alliance coffin. Oneworld's Air Berlin (and its paymaster Etihad) is entering a relationship with Air France/KLM, a member of Skyteam. And it's not just a codeshare, but a long-standing strategic tie-up. Hang on. How on earth can a oneworld Air Berlin do a strategic tie up with the leading carrier in a rival airline and keep its loyalty to oneworld?

Even allowing for the fact oneworld is a looser federation of airlines than Star, this is a nonsense. The oneworld members are now either in bed with rival gulf carriers or hitched to rival alliance members in strategic partnerships.

It beggars belief to think that oneworld can be more than a frequent flyer earn-and-burn alliance under those circumstances. The one who has most right to be annoyed is Al Bakar at Qatar. Once he is a full member he can rightly ask after the loyalties of Qantas and Air Berlin. Are they to his airline as a oneworld member? Or to Emirates and Etihad as their respective partners? We know the answer. It is a mess.

Clark at Emirates has always said the alliances' days are numbered. At this year's IATA conference he sparked a lively debate with the view that the alliances were passed their sell by date because they couldn't address the competitive demands of today's market.

He may be right. They were a creation of necessity because global airlines cannot legally consolidate. However, as we are now seeing, the gulf carriers are either joining the alliances (Qatar) picking them off one by one (Emirates) or simply creating split loyalties (Etihad).

I predict that Air Berlin will eventually leave oneworld and join Skyteam to tidy up its relationship. I predict Qantas will slowly but surely drift away from oneworld but keep one foot in the camp because of its relationship with American Airlines and U.S. routes. And I predict Star loses Brazil's TAM to oneworld next year.

And throughout all of this the gulf carriers continue doing ad hoc deals where necessary (Emirates talking to American, for instance) and re-writing the rules.

The point here is that the gulf carriers are in the left seat. They have the planes, the hubs, the connections and are opening up the new markets. Now the alliances have to learn how to deal with it. It won't be pretty.

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MAS will cease all flights to all of Europe with the exception of LHR and AMS. Affected passengers on the canceled routes (CDG, FRA) will all be routed via DOH on QR, similar arrangement as QF/EK but we're way better because both of us (MH and QR) are gonna be in the same alliance, whereas QF is whoring itself out to an enemy. LHR is kept because demand is still there and also for prestige reason while AMS is not getting cut either as their partnership with KL is working fine.

 

With our partnership with QR, we (MAS) will be flying to more European cities than ever! Well, kind of anyway by placing our MH code on all of QR Europe bound flights. And soon we will both become official OneWorld Partners and our passengers can earn Enrich miles on all QR flights, be it on a QR or MH code as long as the flight is operated by QR.

 

MAS will also cease flying into LAX as well as AKL. All LAX bound passengers will now be routed either HKG (c'mon, CX got so many flights to LAX) or NRT (on JL). AKL bound passengers on the other hand, can choose to connect in either MEL or SYD.

 

So there you go, no wonder AJ said all of MAS 772ER will be gone in 3 years time :p Silly me. Thinking it is a wise choice to refurbish their 772ER now. I guess they really have no reason to invest more money on their 772ER now.

 

Except KLM/AF just inked a deal to codeshare with Etihad for services to Australia so i guess the days of MH/KL codeshares are now numbered.

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If alliance membership is akin to marriages, then oneworld is a massive polygamous community with several of its members flirting and cosying up with members of other alliances. All these are very well documented in the CNN article posted above. My thoughts however are with the two designated members - SriLankan Airlines (UL) and Malaysia Airlines (MH).

 

Both already are faced with strong competition from the major Gulf carriers including Qatar Airways (QR) but are now likely to feel the heat from within the oneworld alliance itself. With QR in oneworld, what value do UL and MH bring to the alliance mahjong table ... UL perhaps some connections into India and MH with some connections within East and West Malaysia. If there were hopes that either British Airways or Qantas Airways (MH's sponsor into oneworld) would use MH as a connecting carrier into Australia, QR might just have ruined the parties that were being planned.

 

The most blatant polygamous oneworld member just has got to be one of the newest oneworld member - airBerlin (AB). After selling a portion of its shares to Etihad, it allowed itself to be drawn into a longterm strategic relationship with Skyteam's leaders Air France/KLM. This must have been a major entry in the Skyteam scorecard.

 

QR has more planes on order than airlines such as MH has in its existing fleet ... MH as an imminent member of oneworld will have to seriously assess its role in the alliance or risk existing as a little girl carrying the wedding rings to the alliance wedding ceremonies. Poor UL which for several months must have been harbouring hopes of carrying oneworld passengers beyond Colombo into India is now left staring at the broken pieces on the floor ... QR can now do that more conveniently, thank you.

 

KC Sim

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Does MH have much of a choice? They can't really survive alone. If you can't fight them, join them. At least there is some chance they can make it. Perhaps even grow stronger and be a major player.

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Qatar Airways chief executive Akbar Al Baker blasted his critics during an address to the Aviation Club in London on 17 October, saying that the Gulf carriers should no longer be viewed by the legacy airlines as their biggest threat.

 

Al Baker said that he and his "neighbours across the Gulf" had "moved up a notch" following Qatar's deal to join Oneworld; Emirates' tie-up with Qantas; and Etihad's partnership with Air France-KLM.

 

"We can no longer be seen as enemy number one by the established players. We have matured enough to enter the big league," he said.

 

Al Baker added that he had "personally faced criticism" from "two particular European legacy carriers which have falsely accused Gulf carriers of using government money to subsidise our remarkable growth".

 

Their criticism "shows lack of understanding of our business model", he said, adding: "This shows arrogance and ignorance of how we operate. Those who criticise with baseless arguments are afraid of the competitive threat we pose."

 

He said that while European airlines did not object to the rise of the Asian network carriers, they had a "problem" when the Gulf carriers began establishing strong hubs in Doha, Dubai and Abu Dhabi. "The fast pace of development and expansion of these hubs have been viewed as anti-competitive, posing a huge threat to the European hubs," he continued.

 

Al Baker also took his critics to task over their complaints about state aid, saying: "Governments which are part or whole investors in businesses have a right to inject equity if they feel a noticeable long-term return. This is exactly what has happened in my country and with our neighbours.

 

"Many European carriers enjoyed decades of so-called state aid. While under government control, money poured into their businesses."

 

Al Baker claimed that even after European deregulation, government money was injected through indirect state subsidies. "Although Swiss does not belong to the EU, the $1.5 billion state aid in 2002 benefited owner Lufthansa," he said.

 

"Lufthansa has managed to widen its net across Europe over the years...and emerged as one of our adversaries, complaining they are losing money with the onslaught of 'unfair competition!'"

 

"It is not the Gulf carriers which make Lufthansa lose money, but more so its own incapabilities in the quest to operate profitably."

 

http://www.flightglo...l-baker-377794/

Edited by alberttky

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