Etihad Airways CEO James Hogan, speaking at the CAPA Australia Pacific Aviation Summit, stated (07-Aug-2013) Gulf region traffic continues to double international average passenger traffic growth rates thanks to its geographic advantage as a connecting hub. Etihad Airways “cannot play catch up” with more established competitors such as Emirates and Qatar Airways and so pursued its own strategy of equity partnerships and codeshares, in concert with its own organic growth.
Etihad Airways: Gulf continues to double international growth rates
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Brexit follow-up Part 3: Gulf airlines, Turkish lose UK ally in M/E talks as protectionism spreads
The Brexit referendum produced a vote for the United Kingdom to leave the EU, although this process has not yet been formally invoked. In the scope of aviation, one outcome is the potential loss of the UK in shaping air service agreement negotiations. The UK has been a liberalising voice, one that often counterbalanced more protectionist views from France and Germany. The UK is often able to galvanise the smaller EU states too.
The EU now has mandates to negotiate open skies with states, including the UAE, Qatar, Turkey and the ASEAN bloc. The UAE and Qatar, home to the three Gulf network airlines, are expected to produce the most contentious negotiations. France and Germany will surely takes cues from Air France and Lufthansa to impede Gulf growth. In this light there are questions about whether the talks are genuinely motivated, or merely designed to draw out the discussion and thereby not produce any additional traffic rights while under negotiation.
What Air France and Lufthansa need is a real, lasting solution, rather than persevering Canute-like with stonewalling. Although a partnership seems logical, they may have waited too long. The Gulf airlines have found that they can succeed on their own.
British Airways-Qatar Airways form Europe's first Gulf airline JV, showing some oneworld flexibility
British Airways and Qatar Airways are to commence a revenue-sharing joint venture from 30-Oct-2016. Even before Qatar Airways took 20% of the equity of BA parent group IAG, the JV was expected – and perhaps due earlier. The agreement includes the UK, continental Europe, Asia, Middle East and Africa – essentially all regions but the Americas. Some specifics and regulatory matters are to be worked through, and Iberia is excluded but presumably will be added.
oneworld has always been a flexible congregation of bilateral relationships, but nowhere has this been better exemplified than with Qatar Airways' membership of oneworld and eg Qantas' deep partnership with Emirates. The BA-QR JV is the first between a European airline and a Gulf airline. Compared to AF-KLM and Lufthansa, BA/IAG have been more open towards Gulf airlines, a result of management but also pragmatism: BA's hub at London Heathrow is capacity constrained and BA typically carries a majority of O&D passengers.