Qatar Airways seeks an Indian home

Gulf carrier wants to leverage its knowledge of regional skies to chart a national flight path

Run through the top international brands that dominate Indian travel lists and Qatar Airways (QA)  is third, it stands a few rungs away from other Gulf carriers, Emirates  and Etihad who take the first and second spot amongst the foreign airlines. Six Gulf airlines figure in the list of top ten airlines flying on international routes to/from India. Four positions including top two are held by Indian carriers (Jet Airways and Air India). The Gulf airlines have networks stretching from Sao Paolo to Sydney, but what sets them apart from other foreign airlines in the Indian market are the close ties between India and West Asia. And these are the ties that QA is banking on to power its bid for a new home in India.

The Gulf carriers drive traffic and brand value on the back of the strong migrant workforce that travels from Kerala to West Asia and the traditional trading ties that still dominate the region. QA’s decision to pitch for a domestic airline came as no surprise therefore. However to become a credible national brand for international travel, the Gulf carrier has a long way to go before it can craft a distinct identity for itself.

Pitching for more fliers

Aviation expert Saj Ahmad believes that India's refusal to increase traffic rights has spurred QA to take a new approach. Setting up a new domestic airline seems the best option, given that it is keen to increase its base in the country. Some remark that it is the result of its failed bid for low cost carrier IndiGo. Whatever the reason, QA, like its West Asian compatriots, is stepping up its game in the region.

At present, with weekly seats between India and Doha capped at 24,000 the airline is at a disadvantage in comparison to its peers. Except Delhi and Kochi where it flies double daily and eleven times a week respectively all its services are once a day. It faces a situation where it wants to attract more fliers but unable to step up operations to do that. The brand needs to be more visible on the ground and in air and that can happen only when QA gets to operate more flights out of India say experts. 

 “Qatar Airways has been able to create a positive impression because of a good product and competitive fares. The airline is popular amongst business travellers and software professionals in Bengaluru and Hyderabad which have fewer direct flights to Europe and the US than Mumbai or Delhi,” said a travel consultant. 

QA had a share of 4 per cent in FY16 of India's overall foreign traffic.  In FY15 its share was 4.05 per cent. This includes traffic to Doha and those travelling onward to Europe, Africa or the US. 

Interestingly, this is higher than international airlines such as Singapore Airlines or Lufthansa which are bigger advertisers in the domestic market than QA.

“India is one of the world’s fastest growing economies, with tremendous business opportunities, making it a significant market,” Al Baker said at a tourism event in Delhi last September. International air traffic out of India rose to around 50 million in 2015-16, growing by nearly 9 per cent over the previous year. The domestic market is growing at 20 per cent plus month after month. QA wants a bigger slice of this pie.

Global with a local flavour

Over 60-70 per cent of Qatar Airways passengers from India travel onward from Doha. Doha as a destination attracts fewer passengers than Dubai, Muscat or Kuwait and Qatar Airways would not feature in the top ten airlines between India and West Asia if one considers only the destination traffic. When it does set up a new home in the country many believe it would tap into the pool of global travelers flying from and to India and onward.

“The core business model for airlines in the Middle East is to be opulent and attract top dollars from customers. Hence, they will continue to innovate and are unlikely to cut down on perks despite the downturn. However, it is likely that the new airline being set up in India will be a LCC-style carrier that does away with the frills for short sectors from India to Doha,” said Shashank Nigam, CEO of Singapore-based aviation brand strategy firm SimpliFlying. 

Would this imply a dual branding strategy, no frills short haul flights and full service, premium products for the long distance traveler? QA is yet to spell out its plans for its Indian airline except for saying that it will be set up in partnership with that country's investment authority.  Sources have said it could use Boeing 737 Max aircraft for the new airline in India. Last October the airline signed a letter of intent to purchase 60 Boeing 737 Max aircraft and in the past two months, it has launched the world's longest non-stop flight between Doha-Auckland and unveiled a new business class product with a double bed.

“The large investments being made in products and cabin services like Qatar Airways new business class product and the bar on Emirates Airbus A380s underscores the readiness for continued investment to drive forward unique selling points to passengers,” Ahmad says.

However the local market is dominated by low cost carriers IndiGo, GoAir and SpiceJet that have a combined market share of 60 per cent. IndiGo alone accounts for nearly 40 per cent share.Competition is intense in the full service segment too with three main players Air India, Jet Airways and Vistara jostling for market share. What will Qatar Airways offer to turn the price conscious Indian flier its way? The airline is not telling, yet.