WEBVTT - Qatar Airways CEO Talks Boeing, Airbus Orders

0:00:02.440 --> 0:00:06.800
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:07.000 --> 0:00:09.400
<v Speaker 2>Let's get a farm Er International show where we can

0:00:09.640 --> 0:00:11.800
<v Speaker 2>frame the narrative a little bit further. Guy Johnson, it's

0:00:11.800 --> 0:00:15.080
<v Speaker 2>any time, but the see of cut aways. Guy, good morning, Manice,

0:00:15.120 --> 0:00:18.040
<v Speaker 2>thank you very much. Indeed, is the new CEO of

0:00:18.120 --> 0:00:21.239
<v Speaker 2>Cast Airways. It is fantastic to speak with him and

0:00:21.360 --> 0:00:23.200
<v Speaker 2>have him join us here at the farm Ber Ratio.

0:00:23.400 --> 0:00:25.000
<v Speaker 3>Nice to see you, really good to see you too.

0:00:25.200 --> 0:00:27.400
<v Speaker 3>Friday was a busy day for the Aviation Center.

0:00:28.280 --> 0:00:31.080
<v Speaker 4>Talk me through the effects on your airline. Took me

0:00:31.080 --> 0:00:33.080
<v Speaker 4>through the effect you're still seeing. Is there any effect

0:00:33.120 --> 0:00:33.840
<v Speaker 4>that we're still seeing.

0:00:34.800 --> 0:00:37.800
<v Speaker 1>I'll talk about our airline and our airport. Thank god

0:00:38.200 --> 0:00:40.400
<v Speaker 1>we were not affected out of our base and do

0:00:41.240 --> 0:00:46.080
<v Speaker 1>Everything was moving smoothly. Our ontime performance on that specific

0:00:46.200 --> 0:00:51.160
<v Speaker 1>day was around eighty seven eighty eight percent. But we

0:00:51.159 --> 0:00:55.840
<v Speaker 1>were expecting some delays after our wave because our early

0:00:55.880 --> 0:00:59.160
<v Speaker 1>morning wave has basically gone to Europe and the US.

0:00:59.840 --> 0:01:03.080
<v Speaker 1>Were expecting some delays for our flights coming back from

0:01:03.120 --> 0:01:07.160
<v Speaker 1>Europe and the US because the airports were getting busy,

0:01:07.280 --> 0:01:10.920
<v Speaker 1>so many flows were getting canceled. But luckily it was

0:01:11.080 --> 0:01:15.080
<v Speaker 1>better than what we expected from from what's the lesson.

0:01:16.600 --> 0:01:20.400
<v Speaker 1>Lesson You always have to have plan B. If technology

0:01:20.400 --> 0:01:22.560
<v Speaker 1>fails you need to go back to to You need

0:01:22.600 --> 0:01:25.720
<v Speaker 1>to have again you need to defend the dependent technology.

0:01:25.760 --> 0:01:29.160
<v Speaker 3>But you have to have a plan b Ryano this morning, dwngrading.

0:01:29.200 --> 0:01:31.880
<v Speaker 4>It's demand expectations, it's pricing expectations.

0:01:32.480 --> 0:01:35.400
<v Speaker 3>What are you seeing in terms of demand and pricing?

0:01:35.760 --> 0:01:40.560
<v Speaker 1>You know, we have recorded record profit last financial year,

0:01:41.319 --> 0:01:48.040
<v Speaker 1>and we keep getting asked this question and we continue

0:01:48.080 --> 0:01:52.840
<v Speaker 1>to say, no, demand is there, However, proof as in

0:01:52.880 --> 0:01:59.360
<v Speaker 1>the pudding our first quarter of this financial year as

0:01:59.400 --> 0:02:06.840
<v Speaker 1>another record profit. It is way more than the net

0:02:06.880 --> 0:02:10.080
<v Speaker 1>profit that we have recorded in the first quarter of

0:02:10.200 --> 0:02:13.760
<v Speaker 1>last year, and it is also exceeding.

0:02:13.280 --> 0:02:17.720
<v Speaker 3>Our So it's demand accelerating. Let us from what we see.

0:02:18.000 --> 0:02:20.280
<v Speaker 3>Let's okay, you.

0:02:20.240 --> 0:02:23.720
<v Speaker 4>Are going to unveil in an hour or so, your

0:02:23.760 --> 0:02:26.959
<v Speaker 4>new premium class cabin, your first class cabin, your business

0:02:27.000 --> 0:02:27.600
<v Speaker 4>class cabin.

0:02:27.960 --> 0:02:28.680
<v Speaker 3>It's what you've got.

0:02:28.800 --> 0:02:31.919
<v Speaker 4>It's the Q Suite, and it's going to go into

0:02:31.960 --> 0:02:34.760
<v Speaker 4>the Triple seven X, which is an airplane that we're

0:02:34.760 --> 0:02:39.119
<v Speaker 4>all waiting for. Yeah, it's the new Boeing and we've

0:02:39.120 --> 0:02:41.639
<v Speaker 4>been waiting for quite some time. And I'm wondering kind

0:02:41.680 --> 0:02:44.200
<v Speaker 4>of if you're prepared to wait that long to put

0:02:44.240 --> 0:02:47.320
<v Speaker 4>this new product into this new airplane, does it have

0:02:47.400 --> 0:02:50.160
<v Speaker 4>to be the new Q Suite with the new Triple

0:02:50.200 --> 0:02:50.760
<v Speaker 4>seven X.

0:02:51.160 --> 0:02:53.680
<v Speaker 1>You know, we're putting the new Q Suite on both aircrafts,

0:02:53.680 --> 0:02:56.320
<v Speaker 1>the Triple seven X and the three fifty year.

0:02:56.760 --> 0:02:58.880
<v Speaker 3>So it's going to go in the new three fifty absolutely, yes,

0:02:59.240 --> 0:03:00.320
<v Speaker 3>the Triple seven ACTS.

0:03:00.760 --> 0:03:03.799
<v Speaker 1>The date that we have now from Boeing is around

0:03:03.840 --> 0:03:07.600
<v Speaker 1>first quarter of twenty twenty six. Twenty twenty four is

0:03:07.600 --> 0:03:10.680
<v Speaker 1>already over, so you're talking about a year a year

0:03:10.720 --> 0:03:10.880
<v Speaker 1>and a.

0:03:10.840 --> 0:03:12.200
<v Speaker 3>Half confidence on that date.

0:03:12.360 --> 0:03:15.399
<v Speaker 1>Yeah, we got we got a confirmation and a commitment

0:03:15.440 --> 0:03:18.200
<v Speaker 1>from Bowing that they will be able to deliver the

0:03:18.240 --> 0:03:19.320
<v Speaker 1>aircraft on this date.

0:03:19.680 --> 0:03:21.440
<v Speaker 4>So where do we see it? Where do we need it?

0:03:21.520 --> 0:03:23.440
<v Speaker 4>Where do we you see this new Q Suite first?

0:03:23.520 --> 0:03:25.080
<v Speaker 4>Is it going to be on the three fifty or

0:03:25.120 --> 0:03:28.000
<v Speaker 4>the Triple seven X will be on the Triple seven X, right,

0:03:29.000 --> 0:03:32.359
<v Speaker 4>and if it's the layed any further ittle that that changes,

0:03:32.400 --> 0:03:35.160
<v Speaker 4>you'll put it into the three fifteen. Yes, we're also

0:03:35.200 --> 0:03:37.880
<v Speaker 4>expecting a big order from Cata. We thought it might

0:03:37.920 --> 0:03:41.520
<v Speaker 4>come at this air show. There were rumors, there.

0:03:41.440 --> 0:03:43.480
<v Speaker 3>Was some expectation there's civil owners.

0:03:43.760 --> 0:03:49.720
<v Speaker 1>Yeah, but you know it's a it's a big order,

0:03:50.240 --> 0:03:53.560
<v Speaker 1>so we want to take our time and evaluating the

0:03:53.600 --> 0:03:57.600
<v Speaker 1>bids or the offers that we got we received from

0:03:57.600 --> 0:04:02.360
<v Speaker 1>Boeing and Airbus. We're busy evaluating both offers. We're in

0:04:02.440 --> 0:04:08.040
<v Speaker 1>continuous discussion with with both manufacturers and and we're hoping

0:04:08.160 --> 0:04:10.200
<v Speaker 1>we're aiming to conclude the.

0:04:11.720 --> 0:04:13.960
<v Speaker 3>The the deal, the decision.

0:04:13.600 --> 0:04:17.560
<v Speaker 1>By I would not say and this year maybe in

0:04:17.640 --> 0:04:18.800
<v Speaker 1>the beginning of next year.

0:04:19.200 --> 0:04:20.000
<v Speaker 3>Where's it's a lake.

0:04:20.760 --> 0:04:23.440
<v Speaker 4>You're evaluating the offers, so you've got what you need

0:04:23.560 --> 0:04:25.320
<v Speaker 4>or are you still waiting for what you need?

0:04:25.720 --> 0:04:28.640
<v Speaker 1>We got what we we got partially, We got what

0:04:28.720 --> 0:04:31.880
<v Speaker 1>we need and the offers, but we asked for something

0:04:31.920 --> 0:04:37.599
<v Speaker 1>different this time from both manufacturers and and this is

0:04:37.640 --> 0:04:41.880
<v Speaker 1>where we're spending some time and this in the discussion

0:04:41.920 --> 0:04:42.200
<v Speaker 1>with them.

0:04:42.440 --> 0:04:45.080
<v Speaker 4>The engines is the aircraft, what is where's the where's

0:04:45.120 --> 0:04:45.840
<v Speaker 4>the challenge of the will?

0:04:45.880 --> 0:04:50.200
<v Speaker 1>And no, there is no challenge. It's very clear what

0:04:50.240 --> 0:04:53.560
<v Speaker 1>we are asked for. But the other element that we

0:04:53.680 --> 0:04:56.599
<v Speaker 1>asked the the the the manufacturers to bid for or

0:04:56.640 --> 0:04:59.760
<v Speaker 1>to propose it for us, because it is something new

0:05:00.440 --> 0:05:03.560
<v Speaker 1>maybe maybe in the industry or the way the bid

0:05:03.640 --> 0:05:07.720
<v Speaker 1>for for tenders. This is where we are in continuous

0:05:07.760 --> 0:05:09.320
<v Speaker 1>discussion with them.

0:05:09.360 --> 0:05:13.520
<v Speaker 4>Okay, that's the key, Sweet, What difference is that going

0:05:13.600 --> 0:05:15.520
<v Speaker 4>to make? What do you how do you think this

0:05:15.560 --> 0:05:16.880
<v Speaker 4>is going to change the product that you are going

0:05:16.960 --> 0:05:18.120
<v Speaker 4>to be able to offer? And how do you think

0:05:18.160 --> 0:05:19.400
<v Speaker 4>it's going to keep you competitive?

0:05:20.120 --> 0:05:21.719
<v Speaker 3>You know, for us, the Q suite.

0:05:22.000 --> 0:05:25.839
<v Speaker 1>Everybody knows the Q sweet, either you tried it or

0:05:25.880 --> 0:05:29.640
<v Speaker 1>you read or read about it. So it's been there

0:05:29.720 --> 0:05:34.320
<v Speaker 1>for for many years. It raised the benchmark for many years,

0:05:34.920 --> 0:05:39.640
<v Speaker 1>and you know, we won so many awards. Our team

0:05:39.920 --> 0:05:43.800
<v Speaker 1>decided to take a new challenge by basically push the

0:05:43.839 --> 0:05:50.280
<v Speaker 1>bar once again, raise the the benchmark and too basically

0:05:50.480 --> 0:05:54.080
<v Speaker 1>do some some modification and the and the and I'm

0:05:54.080 --> 0:05:58.800
<v Speaker 1>not talking about colors or fabrics or no, it's structural

0:05:59.160 --> 0:05:59.919
<v Speaker 1>changes in the end.

0:06:00.279 --> 0:06:02.279
<v Speaker 4>Okay, Well, that takes me to my next question. Perfectly,

0:06:02.760 --> 0:06:08.280
<v Speaker 4>structural changes, a reassessment of what the airline does. You've

0:06:08.279 --> 0:06:11.600
<v Speaker 4>come in as the new CEO used around the airport,

0:06:12.200 --> 0:06:14.880
<v Speaker 4>you step stepped into the to the airline role. Now

0:06:16.240 --> 0:06:18.120
<v Speaker 4>all I hear about is you changing the culture in

0:06:18.160 --> 0:06:21.400
<v Speaker 4>a significant way. Structural changes at this airline in terms

0:06:21.400 --> 0:06:24.200
<v Speaker 4>of the way that it operates. Taught me through some

0:06:24.200 --> 0:06:26.359
<v Speaker 4>of the some of the metrics you're looking at in

0:06:26.440 --> 0:06:28.080
<v Speaker 4>terms of the effect that that is going to have.

0:06:28.160 --> 0:06:31.680
<v Speaker 4>You're listening people's the way they work, You're giving them

0:06:31.680 --> 0:06:34.120
<v Speaker 4>more autonomy. What effect is that going to have? What's

0:06:34.120 --> 0:06:35.320
<v Speaker 4>the effect is it going to have on things like

0:06:35.400 --> 0:06:37.360
<v Speaker 4>job retention? Tall me through the numbers you're looking for.

0:06:37.640 --> 0:06:40.080
<v Speaker 1>You know, what we are trying to achieve out of

0:06:40.120 --> 0:06:43.160
<v Speaker 1>this is to make people, our people in the company

0:06:43.720 --> 0:06:47.560
<v Speaker 1>feel that they're listened to and they're part of the

0:06:47.640 --> 0:06:51.880
<v Speaker 1>decision and they're not scared or stressed to speak up

0:06:51.880 --> 0:06:54.680
<v Speaker 1>their opinion. By the end of the day, we are

0:06:54.720 --> 0:06:59.560
<v Speaker 1>getting the best the experts in each field in each area,

0:07:00.040 --> 0:07:02.440
<v Speaker 1>and this is what we want to do, basically, to

0:07:02.839 --> 0:07:07.560
<v Speaker 1>have them talk about areas that matters for the company.

0:07:08.720 --> 0:07:11.560
<v Speaker 1>This is on one side, so basically it's a culture

0:07:11.640 --> 0:07:18.040
<v Speaker 1>of empowerment and trust and also basically holding people accountable

0:07:18.080 --> 0:07:21.679
<v Speaker 1>and liable for decisions they make. On the other hand,

0:07:22.560 --> 0:07:25.640
<v Speaker 1>we've noticed with some of the easement and some of

0:07:25.680 --> 0:07:28.920
<v Speaker 1>the policies that we have in place for our staff

0:07:29.360 --> 0:07:35.640
<v Speaker 1>that we see some good outcome of it. Previously, we

0:07:35.720 --> 0:07:39.200
<v Speaker 1>had a problem in certain areas with the attrition of

0:07:40.000 --> 0:07:45.480
<v Speaker 1>ourself to us double digit person and percentage eighteen nineteen

0:07:45.520 --> 0:07:51.320
<v Speaker 1>percent every month. This number dropped by seventy percent. So

0:07:51.440 --> 0:07:54.440
<v Speaker 1>people want to say in the company, people really appreciate

0:07:54.640 --> 0:07:57.840
<v Speaker 1>working for paper Airways and they see that their future

0:07:57.920 --> 0:07:59.840
<v Speaker 1>is with the best airline.

0:07:59.440 --> 0:07:59.920
<v Speaker 3>In the world.

0:08:00.120 --> 0:08:02.520
<v Speaker 4>So staff retention is already improved significant.

0:08:02.640 --> 0:08:05.280
<v Speaker 3>Absolutely, yes, in terms.

0:08:05.080 --> 0:08:06.880
<v Speaker 4>Of what that means in terms of your ability to

0:08:06.880 --> 0:08:09.760
<v Speaker 4>the live products and control costs. What effect have in

0:08:09.800 --> 0:08:11.200
<v Speaker 4>terms of the bottom line.

0:08:11.360 --> 0:08:12.720
<v Speaker 1>You know, by the end of the day, we're talking

0:08:12.720 --> 0:08:18.120
<v Speaker 1>about numbers. Last year we recorded again the highest profit

0:08:18.160 --> 0:08:21.320
<v Speaker 1>in the history of the company. This quarter we are

0:08:21.320 --> 0:08:24.800
<v Speaker 1>recording the highest profit and the history of the first

0:08:24.880 --> 0:08:30.320
<v Speaker 1>quarter and the company. We're talking about percentage wise triple

0:08:30.920 --> 0:08:34.120
<v Speaker 1>digits compared to last year. So this is this is

0:08:34.200 --> 0:08:38.160
<v Speaker 1>a prove that we're looking at revenue plus, looking at

0:08:38.400 --> 0:08:43.080
<v Speaker 1>reducing costs and cutting costs wherever it is necessary, as

0:08:43.160 --> 0:08:46.000
<v Speaker 1>long as it will not affect the customer.

0:08:47.120 --> 0:08:50.920
<v Speaker 3>Experience. I've got one final quick question. I'm going to

0:08:50.960 --> 0:08:51.640
<v Speaker 3>get told off for this.

0:08:52.400 --> 0:08:55.320
<v Speaker 4>Rwanda Rair and some of the South African airlines and

0:08:55.400 --> 0:08:56.240
<v Speaker 4>other areas.

0:08:56.960 --> 0:08:58.280
<v Speaker 3>Took me through what we're going to see in terms

0:08:58.320 --> 0:08:58.720
<v Speaker 3>of deals.

0:08:58.760 --> 0:09:02.000
<v Speaker 1>You know, I was I was hoping to announce our

0:09:02.080 --> 0:09:08.880
<v Speaker 1>investment and in the South African Airline in this interview, however,

0:09:09.040 --> 0:09:12.960
<v Speaker 1>because of some final stages.

0:09:13.000 --> 0:09:16.120
<v Speaker 3>Which name are we talking about again? It's one of

0:09:16.400 --> 0:09:20.319
<v Speaker 3>three companies and I promise you you will be the

0:09:20.400 --> 0:09:21.880
<v Speaker 3>personal I will be the person.

0:09:22.000 --> 0:09:25.600
<v Speaker 4>I paraoma see casa away, sir, Thank you very much.

0:09:25.640 --> 0:09:25.960
<v Speaker 3>Indeed,