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Feb 13, 2011

QATAR AIRWAYS CEO HITS BACK AT COMMENTS MADE BY ASSOCIATION OF EUROPEAN AIRLINES SECRETARY GENERAL.

QATAR AIRWAYS CEO HITS BACK AT COMMENTS MADE BY ASSOCIATION OF EUROPEAN AIRLINES SECRETARY GENERAL.: "
Qatar Airways Chief Executive Officer Akbar Al Baker today hit back at comments made by the Secretary General of the Association of European Airlines about the dramatic rise of Gulf carriers and their impact on the global aviation industry.

The boss of the Doha-based carrier said comments made by Ulrich Schulte-Strathaus at a recent gathering of the International Aviation Club in Washington DC were “factually incorrect and unfounded”.

Said Al Baker: “I recently came across the remarks made by a colleague of ours, Mr Schulte-Strathaus, Secretary General of the Association of European Airlines, about how global competition needs to be addressed by the International Civil Aviation Organisation, similar to what the industry is calling for in the domain of the environment.

“Mr. Schulte-Strathaus focused on the competitive pressure that airlines from the Gulf are posing on their counterparts elsewhere. Usually I would choose not to comment directly on calls to find ways to limit the growth of the Gulf carriers, including Qatar Airways.

“However, because Mr. Schulte-Strathaus chose to address one of the august forums of aviation visionaries in the world, I thought I needed to put the record straight. Mr. Schulte-Strathaus in his remarks included a number of “facts” which I beg to disagree with. The so-called facts that he alluded to were as follows:

  1. The geographical proximity of Doha, Dubai, and Abu Dhabi gives rise to an anomaly in aviation. The fact of the matter is that it is quite common to have a multitude of hubs in close proximity: Singapore and Kuala Lumpur; Paris, Amsterdam, and London; Frankfurt, Zurich, and Vienna; the airports of New York and so on.

    Therefore, having three major hubs within a 280 miles radius is not a novelty in aviation.

  1. Mr. Schulte-Strathaus raises the issue that the governments of the UAE and Qatar consider the airlines of the Gulf as part of national strategy and as a “tool of a vertically integrated economic chain”. Again, he is trying to highlight a norm rather than an anomaly in the current geopolitical structure.

    3.I would like to pose a question to Mr. Schulte-Strathaus: Can he tell me of any country of the world which does not consider its air transport industry, be that an individual airline or a multitude of them, as part of national interests? Was it not the case that the US government provided its airlines with cash outlays and tax breaks, as well as war insurance subsidies after September 11 in order to ensure the continuity of the US air transport industry? Is it not the case even further that the position of the US has consistently been to preserve the national identity and ownership of the US airlines? And on the other side of the Atlantic, doesn’t Mr. Schulte-Strathaus consider the billions of Euros that are allowed under the EU laws to pump into airlines for “restructuring purposes” as a manifestation of the strategic national interest in supporting national airlines and what they represent economically and socially?

    Doesn’t Mr. Schulte-Strathaus consider the control over the overwhelming majority of slots in a highly congested region as a lopsided support to national airlines against new entrants including airlines who are coming from airports where European airlines can operate freely without any reciprocity in terms of slots quality?

  1. Mr. Schulte-Strathaus is comparing the aircraft order book of Gulf airlines with that of the US carriers in the long-haul wide body arena as if those airlines plan to dump capacity. The comparison itself is extremely erroneous! The backbone of the US air transport industry is domestic operations. The portion of the capacity deployed internationally as a ratio of the total capacity deployed by the US airlines is minimal. Of course, geography and population spread requires such a structure.
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