82 AUSTRALIAN AVIATION
report by Euromonitor, the global
market intelligence agency, says
Qatar Airways is the main loser in
the turmoil with 30 per cent of its
revenues under threat. Apart from
losing passengers, it also has to spend
extra money on fuel to fly around the
countries it can no longer fly over.
It has had to stop services to four
destinations in the Middle East that
represented some 20 per cent of its
seating capacity.
Al Baker has conceded the airline
will report a loss in its current
financial year.
The spat also came at a time the
Gulf airlines are struggling anyway,
suffering from overcapacity and
security concerns, including a hit
to their traffic resulting from US
President Donald Trump’s efforts
to ban Middle East citizens from
entering the US. Apart from Etihad’s
huge loss, Emirates Airline, the oldest
and largest of the Gulf airlines, posted
its first full-year profit decline for five
years in May, as earnings crashed
more than 80 per cent.
On another front, along with
Emirates and Etihad, Qatar has also
faced an ongoing battle with the big
three US airlines – United, Delta and
American – which have been lobbying
Washington for months to put the
brakes on Gulf airlines’ expansion into
their home market.
Never the shrinking violet, al Baker
has fought the campaign every step
of the way. The airline as recently as
November released a new television
commercial and social media
campaign highlighting the airline’s
contribution to the US economy and
taking its message directly to the
American people: “Our success is also
America’s shared success,” it declares.
The campaign, seen by more than
eight million people on social media,
cites independently-gathered data that
demonstrates Qatar Airways’ robust
US$91.8 billion investment in the
American economy through its 332
US-made aircraft. It also points to the
123,000 American jobs it supports
and says it flies 3.1 million visitors to
the US annually, who helped pump
an extra US$4 billion into the US
economy in 2016 alone.
“This commercial expresses how
tremendously proud we are of the
investment we have made, and
continue to make every year, in the US
economy. Our 332 American-made
aircraft are testament to the faith we
have in America, and in American-
made products,” said Al Baker.
Resorting to what almost amounts
to poetry, he adds: “This commercial
speaks directly to the hearts and
minds of the American people. It
eloquently expresses our firm belief
that nothing great was ever built in
isolation; that together, with our
American partners, we will continue to
invest in America’s future by building
the greatest aircraft in the skies.
Together, we will continue to soar to
even higher heights.”
The troubles at home and the
battle with US airlines have clearly
influenced Qatar’s decision to
look eastwards. According to the
Euromonitor report, Asian cities
dominate the global destination
rankings in 2017, thanks to the
unstoppable rise of Chinese outbound
tourism demand. Hong Kong is the
most visited city in the world, followed
by Bangkok, which overtook London
in 2015.Wouter Geerts, a senior travel
analyst at Euromonitor International,
said: “Asia Pacific is the standout
region driving change in travel. We
expect the region to continue growing
in the coming decade with Singapore
overtaking London as the third most
visited city in the world by 2025,
giving the podium fully to Asia.”
Grabbing part of that pie is high on
Qatar’s agenda.
In the meantime, the carrier hasn’t
shown any signs of slowing down its
expansion drive. It currently operates
a fleet of 206 jets with 220 more
on order. It has 49 narrowbodies
(two A319LRs, 39 A320s and eight
A321s) flying with 30 A320neos and
16 A321neos on order. They join 36
A330 and four A340 widebodies.
Qatar was launch customer for the
A350-900 and now operates 22 with
21 more to come. Also on order are‘Nothing great
was built in
isolation’.
AKBAR AL BAKERQatar has eight A380s of an
eventual 10 in service.SETH
JAWORSKIQATAR AIRWAYS