[MrDarwin]

I do think QR missed a trick with QF though. They joined OW around the same time the agreement with EK kicked off. Had QR and QF joined together it would have given QR an opportunity to launch routes in direct competition with EK and had the advantage of the onward connections and access to the vast Aussie domestic network without the complexity of points earning that the EK/QF agreement has.

[rferguson]

@ MrDarwin – I guess it could have worked with QR. I think QF was at a point where it realised it was going to eaten alive by EK and it’s best chance of survival was to jump into bed with them. EK has 13 daily flights from Australia to Dubai. QR has two to DOH. EK also carries traffic between Australia and Singapore, K.L and BKK as well as across the tasman to both AKL and CHC. It would have taken a while for QR to replicate this kind of force.

And anyway…..if you were the CEO of QF (or AA) would you want to be working alongside His Excellency? Interesting that he apparently has a great respect for the IAG CEO though!

[goalie11]

Have to agree with you WillieWelsh. I took the Etihad flight from EDI to AUH yesterday as I couldn’t get a seat on the packed first flight on Monday and it was a real pleasure in J. The arrival time in AUH is much more civilised at 1930 than 0230 or 0430 with the QR flights. The connections from there to other points on the globe are better too.

So I for one am a fan of the Etihad (Hogan) strategy so let Al Bakar get on with it.

[Gin&Tonic]

Look, those of us based in the hinterland as they like to. Call it, in my case Manchester, have to transit in most cases . We have seen the Gulf carriers enter the markets with amazing J products and prices, but more and more the costs rise, I have not now used EK from Man for over 2 years because QR and EY beat them by several hundred pounds in most cases. Some euro carriers also get in on cost if booked well in advance.
Gulf carriers are a threat long term as the cost will increase year on year until there is little differential.

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stevescoots

[Schaible]

I would not worry too much about his “threats”… Akbar Al Baker is known for his Middle Eastern style big mouth and patriotism, even as third class Qatari: his ancestors were Indian slaves working for the Qatari Royal Court and were – as it was common until mid 1900s – granted Qatari nationality.

[KarlMarx]

fact – Qatar Airways is a 9.99% shareholder in IAG

fact – Qatar Airways is the largest shareholder in IAG

opinion – being the largest shareholder in a group that includes two oneworld carriers is a useful platform to promote your company’s objectives

[BigDog.]

The root cause is US airlines believing the ME3 are cheating.

Emirates CEO Tim Clark offered his opinion to BBC Business in a very imo cogent interview.

http://www.bbc.co.uk/news/business-33089927

[AnthonyDunn]

@ BigDog. – 11/06/2015 08:59 BST

Tim Clark makes some entirely valid points. What he does not address (and has never to my knowledge) is how it is that Emirates manages to retain its investment grade rating whilst its borrowings (the last time I looked back in 2013) amounted to some 180+% of equity. The latter is very considerably higher than seen with entirely privately owned and/or publicly listed carriers. I am reminded that IAG’s 2014 Capital Markets day presentation stated their aim of regaining an investment grade rating with nett debt on a par with their issued share capital (page 12: the IAG Weighted Average Cost of Capital calculation). That is roughly 1:1.

The explanation, as given to me by a friend who is in a very senior position in the asset management side of one of Wall Street’s leading investment banks/investment management firms and who is constantly valuing companies as investment opportunities, is that it is entirely understood across the capital markets that the Gulf Three are underwritten by the governments, taxpayers and sovereign wealth funds of the states from whence they originate. This is a classic example of state capitalism that has been made to work by very strong management – and without the inconvenience of having to deal with western trades unions… He and they would have loved to invest in the G3 – but cannot because of their state ownership.

[Tom Otley]

It may happen this time…. although rather than a dispute with the US….

Qatar Airways renews threat to exit Oneworld alliance over Qantas rift

Leave if you’re not happy, Qantas CEO tells Qatar Airways in response to Oneworld exit threats

* Airline chief Alan Joyce’s comments come amid deepening dispute over Gulf carrier’s expansion into Australia
* Qantas says destinations lost because of row with Qatar Airways can be replaced thanks to pact with Emirates, Air France and KLM

[alainboy56]

Appertaining to the above subject, I Have just done a OW round trip to Europe using, or should I say registering points on my QR Privilege card.
AUH-LHR back on B789’s after the hiatus with B772’s/ Air Belgium A343’s. Service typically BA – nothing fancy, nothing special – I would rate them as merely 4*
LHR-HEL on a heavily delayed AY (A320) last flight out in the evening – more than 1.5hrs delayed, which meant arrival time in HEL (scheduled for 00.15) was way after 01.30am. Wife would not come and collect me – had to take a taxi. —- AY were boring and with zero service on board long before Senor Cruz woke up to this idea. So now unfortunately one has two boring LCC service airlines running in parallel on LHR-HEL route and vice versa.
HEL-DOH on a QR A332 – a sublime flight – perfect service, attentive and very pleasant cabin crew, this time in BIZ (mostly men), but nonetheless as I always say, to quoin a phrase from an car advert and modify it …. “if only all airlines were as good as Qatar Airways” — They really are perfect, from the minute one approaches the aircraft for boarding, to the ground staff in the Lounges and so on. AAB really has indoctrinated a customer service which is absolutely second to none. Coincidentally whilst on this trip I read a Times article, or perhaps letters page with multiple complaints about BA mis-allocation of seating for families/couples etc etc……………….. or shall I call it ‘screw up of seating requirements for customers by BA staff/management/computers’ ????
DOH-MCT on a B772 just for 1.5 hrs, but with food and a tipple and also the entertainment system switched on with headphones provided. A perfect short regional flight.
All of this on One World and Mr Akhbar Al Bakers airline stands out head and shoulders above the other also-rans — if he wishes to leave I could not say I blame him, but he has equity in IAG (incl BA) I believe 19%, and he seems to get on with Willie Walsh (probably not the Spaniard), QR also have 9% of LATAM and also 9% of Cathay Pacific, so he can continue to influence through these equities rather than stick with the moaning whinging yanks and Aussies neither of whom wish to have any competition – full stop! So if he does leave OW it will be sad, but fully understandable
One last word, my last flight was back to UAE was via LX an A333 MCT-DXB, what can I say — cheap, no service, but did depart 10 mins early and due to no holding at DXB arrived on stand 30 mins early …………………. but then that’s when the problems start, GOD I hate DXB airport its horrible….. walk 35kms, then take a train, walk another 35kms, and then be met with a huge snaking queue for passport control where DXB does not recognise AUH ‘smartgate approved’ passports — AUH is another country in their eyes! Oh I really must do my best to avoid DXB — Best airport in the Middle East? ‘My Tais’ if anyone understands arabic!!

[rferguson]

‘Elaborating on what he meant by “fair competition”, Joyce said the general thinking was that companies were economically independent and not cross-subsidised by a government.

“If aviation was governed by the World Trade Organisation, there would be some dumping cases against people for going in well below cost to force people off routes and markets. We think those rules should apply to aviation markets,” he added.’

I find it incredible that the QF CEO makes snide remarks alluding to QR dumping capacity and having state handouts when QF is basically in bed with EK. I think QR learnt everything it knows from EK! Pot kettle black? Reminds me of how SRB, great defender of the flying public and champion of competition, so strongly defended Bermuda II at LHR. A case of ‘competition is great – as long as we are the strong competitor. Otherwise it’s bad’.

[Author]

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