CEO says Qatar Airways would fly to WSI, even if no incentives

By Andrew Curran.

The CEO of Qatar Airways says the airline would have launched flights to Western Sydney Airport even if there had been no incentives or subsidises to do so.

“We would have,” Hamad Al-Khater told Aero South Pacific in Sydney over the weekend. “Ultimately, the catchment area just makes absolute sense.”

Al-Khater was in Sydney for the first time since taking up the CEO role last December. His visit coincided with the opening of Western Sydney Airport (WSI) to passenger flights on October 25.

The airport, which is ultimately owned by the Australian Government, and the New South Wales Government, has put a range of subsidies and incentives on the table to attract carriers.

Last week, the New South Wales Government confirmed that the Qatari airline had “been secured” through its AUD8 million (USD5.52 million) Western Sydney International Take-Off Fund.

The funding is administered by Western Sydney International Airport and Destination NSW on a case-by-case basis and can include help such as passenger subsidies and marketing support.

“The funding provided to each airline is subject to the number of services and subsequent number of passengers they carry over the first three years of operation,” a New South Wales Government statement reads.

VietJet Air, Air New Zealand and Singapore Airlines have all agreed to start flights to Western Sydney Airport with help from the Take-Off Fund, while Jetstar’s domestic flights to Brisbane (BNE) and Coolangatta/Gold Coast (OOL) are receiving support from the Queensland State Government’s Connecting Queensland Fund.

Only Qantas, which starts domestic flights to Brisbane and Melbourne (MEL) from WSI next March, is proceeding without subsidies, although the Qantas Group, which includes Jetstar, has commercial agreements and general launch arrangements with Western Sydney Airport.

Demand for the inaugural flights over the weekend was strong, with the final batch of seats selling for up to ten times the initial promotional prices. The first flight to Coolangatta/Gold Coast sold out.

Catchment and cargo more important than subsidies 

Al-Khater said subsidies and incentives were a feature of the broader airline industry.

“They are obviously present,” he said. “They do play a small part, but ultimately the focus is on the catchment area.”

Western Sydney Airport is around 55 kilometres west of the existing Sydney Airport. However, Sydney’s metropolitan region is large. Western Sydney Airport says around 2.5 million people - roughly equivalent to the population of Perth and more than that of Adelaide - live within a 45-minute drive of the airport.

Many of those people are first- and second-generation migrants with strong social and family ties to their countries of origin and a rich market for carriers with a VFR focus.

The Qatar Airways CEO also highlighted the importance of cargo. Western Sydney Airport is developing a large cargo precinct, and Qantas Freight has already shifted operations there from Sydney Airport. It now operates more than 70 cargo flights a week from WSI.

“Qatar Airways is a massive [player] in cargo,” Al-Khater said. “That really adds an extra component.”

Qatar Airways CEO Hamad Al-Khater in Sydney. Photo: Aero South Pacific.

Qatar Airways will not begin flying to WSI until December 2027. Al-Khater indicated that he would have liked to start services sooner but said it was a matter of having sufficient capacity.

“We have had to manoeuvre a little bit around capacity,” he said, citing the retirement of some of the airline’s older aircraft this year, including the recent withdrawal of its last A330s.

However, Al-Khater said the capacity squeeze should ease next year, when the airline expects to take delivery of 15 new aircraft.

“The (extra) capacity is going to allow us to really manoeuvre and add more routes,” he said.

Qatar Airways will initially operate three flights a week to Western Sydney Airport but hopes to increase that to daily services by the end of 2028.

“It could be earlier,” he said. “(We’re) able to really navigate pretty quickly and reposition and dedicate aircraft to start flying once demand really picks up.”

Al-Khater will also visit several of Qatar Airways’ other Australian destinations during his trip.

Photo: Qatar Airways.
Contact the writer: andrew@aerosouthpacific.com