Qatar Airways has announced its intention to tap the surging ecommerce business by getting into door-to-door courier delivery. Speaking to cargo media in Doha, Qatar Airways chief executive, Akbar Al Baker said the new QR Express product announced today, was aimed squarely at the growing global ecommerce logistics business.
“We want to get into the courier business which is high yield and high margin business,” Al Baker said. “We are very keen on this and this is the first step. We don’t want to be the likes of FedEx, DHL and UPS but we want to play a significant part in this very lucrative business.”
“If you look at the capacity of FedEx and if you see their network, their network in America alone is bigger than our total network, so we are really not going to compete, but we are going to compete within our sphere of influence where we operate,” he added.
Citing the example of the UK, the Qatar Airways CEO noted the carrier would not be interested in carrying packages to the smaller regional cities, but would instead focus on carrying packages to the larger cities of London, Manchester, Edinburgh for instance.
The carrier plans to subcontract the door-to-door delivery to another party which will operate the final-mile delivery under the Qatar Airways brand.
Qatar Airways chief officer cargo, Ulrich Ogiermann said the test phase has already been launched in London and by the end of the year will roll out to another couple of stations. “We cannot do this on a world-wide basis all in one go, we have to build up the expertise on the ground with the third-party provider,” Ogierman said.
Al Baker also highlighted the latest IATA international FTK figures which indicate that Qatar Airways is now the third largest international cargo airlines in the world. “This is phenomenal growth,” he noted pointing to the fact the carrier has risen to the number three position from 16th place in just five years, and now boasts a freighter fleet of six A330s, eight B777s and one B747.
“Being in the top three international cargo carriers in the world reflects the hard work and commitment of the Qatar Airways Cargo team over the past five years,” said Al Baker. “Our cargo capability is a major component in driving our group success and growth, and it will remain a focus of our expansion in the coming years.”
At today’s press conference at Hamad International Airport in Doha, Qatar, he also revealed plans to create a second, even larger cargo terminal at the airline’s hub. The new facility, combined with the current facility, will allow Qatar Airways Cargo to handle 4.4 million tonnes of cargo a year, an increase from today’s 1.4 million tonne capacity.
“The new cargo terminal, which is scheduled to open in 2018, underlines our commitment to continued growth and expansion in line with the airline’s group objectives for the future,” added Ogiermann. “Having the ability to handle 4.4 million tonnes of cargo a year will put Qatar Airways Cargo into another league, and enhance the efficiency and service already offered at our existing state-of-the-art facility,” he said.
Al Baker indicated that future plans include building further capacity for cargo at Hamad International Airport, to up to 7 million tonnes, after current expansion plans are complete.
