Qatar Airways Airline Industry Financial and accounting Analysis - Essay Prowess

Qatar Airways Airline Industry Financial and accounting Analysis

Qatar Airways Airline Industry Financial and accounting Analysis

Qatar Airways Airline Industry 

Background to the airline industry

Qatar Airways Company is a government-owned carrier with its head office in Doha, Qatar and one of the most successful airlines in the aviation industry. The company runs as a hub-and-spoke system connecting more than 160 global destinations across the globe which include the Middle East, South Asia, Far East, Europe, Central Asia, Africa, Oceania, South America, and North America (Benet 2019). Therefore, the company runs on all six continents. The Hamad International Airport serves as its base. Qatar Airways operates over 200 aircraft and has employed more than 43,000 individuals. Since its inception in 1993, the company has witnessed tremendous growth of the years to become one of the biggest airlines in the world.

In 1997, the company had only four aircraft, 2003 it had 28, and by 2006, it had more than 50 aircrafts. Currently, it has 206 aircraft which operates in over 150 destinations across the globe. Notably, the company operates the youngest fleets in the industry with a mean age of the plane at five years (Qatar Airways 2019). The aircrafts include both Boeing and Airbus aircraft. The firm also deals with corporate jets such as Bombardier Global 5000s.

In 2015, the company introduced an innovative brand campaign in the United States entitled – “Going Places Together”. The crusade works on the theme of attaining exemplary things together in terms of adventure, family and work as well as encouraging travellers to take flights that will assist them in accomplishing their ambitions and dreams (Benet 2019). Moreover, the airline has embraced a moving and up-to-date campaign to demonstrate its primary values as an innovative and modern firm that is going places.

Background to the airline

The company was formed in 1993 although it started its business in 1994. The firm began as a small airline with only a few regional carriers operating some routes (Qatar Airways 2019). By 1995, the airline had only 75 employees while the fleet included two Airbus A310s that operated in directions such as Kuwait, Khartoum, Dubai, Cairo, Bangkok, Abu Dhabi, Osaka, Manila, and Madras among others. It also increased services by purchasing two other Boeing aircraft. In 1997, the airline was re-structured under the guidance of His Highness Sheikh Hamad bin Khalifa, who highlighted a vision to transform Qatar Airways into a prominent globally-competitive airline with the most significant quality of service and distinction. The airline has since turned out to be one of the quickest growing carriers in the account of aviation with exceptional advancement being approximately double-digit growth each year (Benet 2019). It also introduced flights to major business hubs in the world such as London. Since 1997, the airline has witnessed significant growth under the able leadership of CEO Akbar Al Baker who has been critical in transforming Qatar Airways into a competitive airline in the world. In a bid to transform the business, it established a new logo (Qatar Airways 2019). Later in 1998, the company placed an order of five new airplanes from Airbus which was planned for delivery in 2001 and 2005. The firm becomes one of the few airlines to acquire Airbus A380s, in 2000. Moreover, in 2003, the airline turned out to be the leading commercial airline to be reviewed based on the innovative IATA operational audit programme.

In 2004 financial year, the Qatar Airways Group that was composed of Qatar Airways, in-flight catering firms, ground handling companies, corporate business air services, and Doha International Airport announced its first-ever profit (Qatar Airways 2019). Moreover, during that financial year, the number of passengers transported hit over 3.35 million people. It also introduced new routes which included Zurich, Yangon, and Osaka. In 2017, the company purchased 49 per cent of AQA Holding (Benet 2019). Qatar Airways has developed into a prominent force in global and regional aviation, receiving many enthusiasts across the globe for its exemplary values of service.

By 2011, the airline had attained a breakthrough by achieving over 100 destinations in its international route map. After two months, the company achieved an incredible feat, merely 14 years since its re-launch. Furthermore, in the same year, it was feted as the Airline of the Year 2011 during the Skytrax World Airline Awards where more than 18 million passengers voted (Qatar Airways 2019). Similarly, in 2012, it was once again awarded the Airline of the Year 2012 which meant it achieved the title for two years in a row. In 2012, it entered OneWorld with incorporation into the global allia

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