Qatar sealed its position at the centre of a new aviation map this week as host to the annual meeting of the global airline industry's International Air Transport Association (IATA), but the Gulf country and its neighbors drew criticism from rivals about trade and investment policies.
Senior representatives of over 200 airlines attended the IATA meeting in Doha earlier this week (01-03 June), making Qatar the first Gulf country to host the summit, which was attended by its fiercest critics.
But a trio of major Gulf carriers fell short of winning the hearts and minds of US and European carriers who continue to see them as a threat and question their growth model.
Western airlines rekindled complaints about a lack of transparency among Gulf carriers at the event, on the back of recent reports that fast-growing Etihad Airways, which has bought stakes in Air Berlin and Aer Lingus among other carriers, had access to an interest-free $3 billion loan from Abu Dhabi's ruling family.
Meanwhile, Etihad is in talks to acquire as much as a 49% stake in loss making Italian national airline Alitalia, which would further expand its reach into Europe.
But Gulf airlines have already transformed the aviation industry over the last decade. Through new expansion strategies and state-backed infrastructure spending, they have reorganized the world's route network and created new connections.
In doing so, Qatar Airways, Emirates and Etihad Airways, along with other regional low budget carriers have drawn passengers away from traditional hubs in Europe and Asia to the Middle East.
Qatar's new $15-billion airport facility served as a showcase for CEOs jetting into Doha for this week's meeting, while neighboring Dubai's international airport is predicted to overtake London Heathrow as the world's busiest airport for international traffic.
While other IATA members are fighting to repel incursions by Gulf carriers into their markets, Emirates’ President Tim Clark rejected allegations of unfair competition.
“My response has always been “put up or shut up” and as far as Emirates is concerned you must have evidence and support what you are saying… Do not make statements if you can't support them and if they are commercially damaging,” he said of carriers that have accused the airline of getting unfair aid.
Source: Reuters
Caption: Qatar Airways CEO Akbar Al Baker (Left) and Tony Tyler, IATA’s Director General and CEO (Right)