World: US ban deals blow to Middle East airlines but UK stance offers hope

Akbar Al Baker was in ebullient mood this month. At an event in Berlin, the CE of Qatar Airways presented a mock-up of the airline’s new business-class seats — which he insisted were the world’s best. He also confidently announced plans to set up a new Qatari-owned airline in the fast-growing Indian market. Less than two weeks later, Mr Al Baker and executives at the other big carriers that route international long-haul air passengers through the Middle East are facing perhaps the most serious setback since their rapid growth took off some 15 years ago. A ban on carrying larger electronic devices in aircraft cabins on flights to the US could persuade passengers to use alternative routes, bypassing hubs in Qatar, the United Arab Emirates and Turkey. If passengers start to drift away from Qatar Airways, Emirates, Etihad and Turkish Airlines, it will mark a significant shift in the balance of power in global aviation. Over the past 15 years, all four carriers, with substantial support from their governments, have taken significant market share through heavy investment both in new long-haul aircraft and their vast hub airports. Andrew Charlton, a Geneva-based aviation consultant, said the US ban made flying via the hubs in the Gulf and Turkey more inconvenient and riskier, since it was possible laptops would be broken in aircraft holds. “People will be questioning whether or not it’s a good idea to do it,” Charlton said. “For all of those carriers, the issue is not just transport from Dubai or Abu Dhabi or Doha or Istanbul, it’s all the transport that’s behind that [to and from other points].” Middle Eastern airlines can expect little sympathy from the industry. Rivals in Europe have complained vociferously about the tactics of Gulf airlines in the European market, while US airlines have run a concerted campaign against allegedly unfair competition, asking their government to tear up its aviation agreements with Qatar and the UAE. The US ban threatens to undermine a business model that has brought extraordinary success to airlines in the Middle East. Led by Emirates, the region’s carriers have sought to lay on regular flights between their hubs and even relatively minor international destinations such as Glasgow in the UK and Auckland in New Zealand. One crumb of comfort for Gulf carriers came from the UK. Britain said it would follow the US restrictions but excluded airports in Qatar and the UAE — while including Turkey. <br/>