Akbar Al Baker, the Qatar Airways chief, has attacked critics of Middle Eastern airliners’ utilization of export finance, and their wish for development.
Qatar Airways
While in the Arab Air Carriers Organization conference in Cairo, Al Baker pointed out how the region’s flight companies were being “heavily criticised” for using low cost finance to expand. But he retorts that carrier chiefs behind such attacks “do not understand the basic principles” of financing to airlines.
Al Baker asserts that the real difference between normal market financing and the “cheaper money” is negligible. He also rejects the notion that the Arab airliners gain anything, at least unfairly – from tax breaks and lower staffing costs.
The European carriers often employ their aircraft for eight or nine hours a day while Middle Eastern operators are utilising theirs for 13-14h, he says. With Europe unwilling to expand its airports, Arab carrier really have to expand to compensate.
Another criticism levelled at the Arab operator is one of environmental responsibility. Al Baker called this “propaganda” and said the operator making the most noise was one of the regions biggest carriers that had higher emissions than Quatar Airways. It seems like much of the criticism aimed at Quatar Airways is likely due to European airliners feeling the pinch because of the recession. Al Baker noted that whilst the “mature airlines” created the hub and spoke model the “Arab airlines have adopted this model, and improved it,” he says.
Avoid the hassle go by air charter.