Study of the feasibility of launching a new route between Doha and Buenos Aires by Qatar Airways

Connectivity through air between South America and some countries the Middle East and the South of Asia is currently very limited. For this reason, it might be appealing to open a new air route that is non-existent at the moment, for which the feasibility of doing so between Doha and Buenos Aires by Qatar Airways was determined in this thesis. In order to do so, the layers of the business context were thoroughly assessed, these being the macro-environment, the sector, and the market. Subsequently, the organisation could be designed to best fit the needs of the environment. It was found that the route should be executed with an Airbus A380, and it should have an annual average frequency of 0.89 daily flights. From the previously set characteristics of the route, a break even point of 88% of occupancy rate was obtained, along with a simple payback period of 5.63 years, a discounted payback period of 7.41 years, and a net present value after 10 years of 25% of the initial investment. Moreover, it was found that a direct route between the mentioned cities would reduce CO2 emissions by a 29% with respect to the current alternatives. All in all, the route could be categorized as feasible, although it was clear that it might be more economically efficient to delay the launch until the Argentine Government lowers its taxes for international air transport, as these are the major expense associated to this particular route