DUBAI—Qatar Airways Chief Executive Akbar Al Baker said Monday that he has entered talks with Boeing Co. about a potential narrowbody plane order, ratcheting up pressure on Airbus over delays to its newest single-aisle jet.

Mr. Al Baker has previously threatened to walk away from his deal for Airbus A320neo planes because of shortcomings with the engine made by United Technologies Corp.'s Pratt & Whitney unit.

"We are studying our options," Mr. Al Baker said on the sidelines of the Arabian Travel Market conference in Dubai. The talks with Boeing are the most concrete sign Qatar Airways may walk away from at least part of its order for 34 A320neo and 16 A321neo planes.

Qatar Airways was due to receive the first A320neo last year, but stepped back from that role as launch operator because the airline said the plane and engine weren't ready. Deutsche Lufthansa AG became the launch operator of the plane when it received the first model in January.

Problems with the plane go beyond the engine and include its hydraulics, Mr. Al Baker said, without providing details. "We are a very unhappy customer," Mr. Al Baker said.

An Airbus spokesman said the company expects teething issues, which he described as "normal," to be resolved by midyear. Airbus has delivered only five A320neo planes so far, with others built but waiting for engines.

Mr. Al Baker said Boeing was trying to accommodate Qatar Airways's need for planes.

Separately, Mr. Al Baker said that the airline's talks for a stake in Italian carrier Meridiana had advanced, though weren't final. "We will not sign anything unless we are absolutely certain that our partnership with Meridiana will be a success," he said.

Qatar Airways became the largest investor in British Airways parent International Consolidated Airlines Group SA last year and has said it is looking at other deals.

Those stakes could help underpin the Doha-based airline's rapid growth, which has drawn criticism from some European and U.S. rivals who allege state-owned Persian Gulf airlines, including Qatar, Emirates Airline and Etihad Airways, are benefiting from government subsidies.

All three airlines have denied the charge.

Meridiana in February announced an agreement with Qatar that could lead to a stake sale by midyear, and said last week that Chief Executive Richard Creagh was stepping down as part of the pending stake sale.

Mr. Al Baker said talks with Meridiana still required employees to agree to restructuring measures, including staff cuts. Qatar Airways would take a 49% stake in the carrier and will decide by June whether to proceed with the transaction. European Union rules bar the foreign carrier from taking a larger stake.

"If we feel there is an impasse where we cannot get into a partnership which will be a win-win for both sides Qatar Airways will not take part in the acquisition of a share in Meridiana," he said.

Qatar Airways also is eager to expand to the large Indian market. The carrier was interested in a stake in India's budget airline IndiGo, he said, but Indian regulations barred airlines from participating in the IPO.

Mr. Al Baker said Monday that he remained interested in a stake if the opportunity to buy into the Indian budget airline re-emerged.

Qatar Airways also may take a stake in Royal Air Maroc, Mr. Al Baker said, with backing from both carriers's governments. The stake could be between 25% to 49%, he said.

He also said Qatar Airways would publish financial results for the first time this June. The carrier's critics have attacked it for a lack of transparency, as rival Emirates Airline reports its financial statements. Qatar Airways made a $103 million net profit in 2014, Mr. Al Baker said last year, though the airline didn't publish audited figures.

Write to Nicolas Parasie at nicolas.parasie@wsj.com and Robert Wall at robert.wall@wsj.com

 

(END) Dow Jones Newswires

April 25, 2016 13:05 ET (17:05 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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