Cape Times

Closure of airspace hits Qatar’s airline

- Tim Hepher and Victoria Bryan

A BUST-UP between Arab powers has dealt a blow to super carriers already hurt by low oil prices and laptop bans, exposing the sensitivit­y of Gulf hubs to regional uncertaint­y and creating openings for rival airlines – at least in the short term.

The unexpected closure of most surroundin­g airspace to Qatar’s airline and restrictio­ns on travel for its nationals left passengers stranded and forced its high-profile chief executive to bail out of a meeting of airline bosses in Mexico.

“It completely surprised all of us,” Alexandre de Juniac, head of the Internatio­nal Air Transport Associatio­n, said after overseeing the meeting of around 200 airlines.

Saudi Arabia, Egypt, UAE and Bahrain severed diplomatic ties with Qatar on Monday over its alleged support for militants.

Links closed

Plunged into a diplomatic row for the second time in three years, Qatar Airways was forced to reroute dozen of flights through Iranian airspace as the world’s second-richest nation per capita found itself almost boxed in by no-fly restrictio­ns.

It was a dramatic reversal for the once unstoppabl­e carrier, which has splashed tens of billions of dollars on jetliners and clashed with US rivals over its breakneck expansion.

“The whole business model is based on being a hub. They have invested in the airport, and state-of-the-art aircraft. They are losing a key source of (traffic) feed from major local markets,” British aviation consultant John Strickland said.

“With the overflight ban, it is not only a headache to reroute some of the operations, but it will make flights longer due to more circuitous routes. It adds time and cost and disrupts the schedule in terms of making connection­s.”

Others benefit Some demand may shift to other carriers, he said. IATA delegates said European carriers and Turkish Airlines could benefit, as well as UAE heavyweigh­ts Emirates and Etihad.

Disarray between Gulf allies left the region’s wider aviation growth looking vulnerable in the eyes of some industry watchers and laid bare political complexiti­es underpinni­ng the diversific­ation from oil.

“It has been a reality that they have adapted to and lived with. That said, there has always been a significan­t concern that this (Gulf aviation) is, if not on a knife-edge, then on a fairly narrow plane,” said Peter Harbison, a former Australian aviation trade negotiator and chairman of consultanc­y CAPA.

“It certainly does destabilis­e things that little bit further. Do you get to a tipping point? I don’t think so.”

IATA, whose members include national carriers of all the affected states, was reluctant to wade publicly into the row.

“Nations all over the world can close their borders and close or open their (airspace). But we would like the normal connectivi­ty to be re-establishe­d, the sooner the better,” De Juniac said.

While air travel between

nations is governed by bilateral pacts, the right to overfly another country for civil transport is enshrined in internatio­nal law through a 1944 transit accord.

However, Saudi Arabia is not a member of the treaty, which calls for disputes to be settled through negotiatio­n before exercising the right to close airspace for limited reasons. The decision to isolate Doha came as Qatar Airways boss Akbar Al Baker mingled with IATA members late on Sunday

in Cancún. He left overnight by business jet, delegates said.

The move sent aviation officials from Montreal to Geneva and the Gulf scrambling to understand the ban and find routings through fragmented airspace, a step akin to threading a needle.

IATA said last week Gulf airlines had already seen traffic curtailed in April by US and UK bans on electronic­s in cabins of flights from some Middle East and North African nations.

“I think one can read too

much into a short-term event,” said Aengus Kelly, chief executive of Aercap, one of the world’s largest leasing companies and aircraft owners. “Global travel is resilient. We have been through so much in the past decade: Russia, Brazil, Eurozone crisis, Turkey.”

“Having said that, a lot of capacity has been going into the Gulf region. Some carriers in the Gulf recognised about a year-and-a-half ago that there wasn’t an endless growth model of 15 percent a year.”

That could have consequenc­es for the timing of deliveries of dozens of wide-body jets on order from Airbus and Boeing.

“They will be deferred and the market will come back into balance,” Kelly predicted. The row placed Qatar and its outspoken airline boss in the unusual position of responding to events outside his control.

The region’s shifting dynamics were also reflected by the election of the head of IranAir to IATA’s board. – Reuters

 ??  ?? Passengers of cancelled flights wait at Hamad Internatio­nal Airport in Doha, Qatar, on Tuesday. Qatar’s foreign minister says Kuwait is trying to mediate a diplomatic crisis in which Arab countries have cut diplomatic ties and moved to isolate his...
Passengers of cancelled flights wait at Hamad Internatio­nal Airport in Doha, Qatar, on Tuesday. Qatar’s foreign minister says Kuwait is trying to mediate a diplomatic crisis in which Arab countries have cut diplomatic ties and moved to isolate his...

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