Mubasher TV
Contact Us Advertising   العربية

Qatar punches above its weight

Qatar punches above its weight
Qatar Airways
5956
0.00% 0.00 0.00

In less than two decades of operation, Qatar Airways has often seemed the perfect metaphor for its home state: young, energetic and ambitious, with an international presence far larger than seems possible for a country with just 300,000 citizens.

In 2010 and 2011, as international commentators were waking up to tiny Qatar's massive foreign policy, the state's national air carrier was posting a record year. The world airline market had been depressed since the global financial crisis, but Qatar Airways turned a profit of US$205 million (Dh752.97m) in the fiscal year that ended on March 31,2011.

These days, the relationship between Qatar and its air carrier looks more complementary than parallel. Qatar Airways has become one of the country's most effective - if indirect - diplomatic tools, helping to transform Doha from a remote, dusty capital into a commercial hub for everything from pharmaceuticals to tourism.

"The airline illustrates the increasing global role Qatar seeks to play," says Hassan Al Ibrahim, the co-founder of Fikra, a Qatari think tank. "In a way, Qatar Airways shows how Qatar's soft power grew far beyond its physical borders."

For the first dozen years of its operations, the 50 per cent state-owned carrier grew like a child of the same age - measurably expanding each year with new routes, aircraft and services. By the time the carrier hit the 10-year mark, it had about 3,600 employees.

Since the airline hit its teenage years, however, its growth spurt has had the frenetic charm of a child who outgrows his shoes faster than they can be replaced.

Halfway through this year, Qatar Airways had 14,000 employees.

As of 2010, 98 per cent of its workers were expatriates, and at the company's headquarters near the airport in Doha, new recruits are hired so quickly that the ministry of interior has set up a shop on the first floor just to process visas.

Qatar Airways carried 14.3 million passengers last year to 118 destinations. Next year it expects 17 million.

Like any transformative product, the success of Qatar Airways - and its two UAE-based competitors, Etihad and Emirates - has been disruptive.

At a moment when western carriers are digging out from a mountain of fixed costs, Qatar Airways piled them on, adding aircraft and personnel. The airline has opened new routes, bought up landing slots, and taken on hundreds of thousands of tonnes of the global cargo market.

"The Middle Eastern carriers, as a whole, are being very aggressive in pursuing new routes and expanding cargo services," says Jon Ross, editor of the trade publication Air Cargo World. "They will continue this approach despite the worldwide economic malaise and will continue to gain more market share."

In part, external factors set the stage for the airline's rapid take-off.

"It's fairly simple why they have been so well-placed," said Fadi Majdalani, a partner and air-transport analyst at Booz & Company.

"The Gulf countries have a fantastic geographic location. Their cities are very well placed to ensure that you could have an adequate connection time to cities around the world."

Location alone, however, cannot explain the success. Among the most affected competitors have been other regional airlines such as Tunisair and Middle East Airlines, which have found themselves upstaged by the young fleet of Arabian Gulf-based carriers.

Qatar Airways' massive investments have grabbed the attention of industry professionals. The Doha airline has acted like a counter-cyclical bet, growing even as the global economy grinds slowly along.