Page 23 - AAA JANUARY - FEBRUARY 2018 Online Magazine
P. 23

Big Three in Trouble
                 ullish predictions aside,
                 there is plenty of concern
                 among industry watchers
       Babout the crises that the
        three big Middle Eastern carriers
        – Qatar Airways, Emirates and
        Etihad Airways – are facing. The
        electronics ban may be a thing of
        the past, but the carriers have had
        a plethora of other problems to
        deal with, the collective impact of
        which is being felt by the industry.
        The hardest hit is Qatar Airways,
        which  is  suffering  four  of  its
        neighbors - Saudi Arabia, Egypt,
        the  United  Arab  Emirates  and
        Bahrain - severed relations with  numbers, resulting in a restruc-     in 2003, has not let falling profits
        Qatar and closed their airspace  turing exercise and some layoffs.  come in the way of introducing
        to the carrier’s flights. The airline   Emirates, the largest of the  NASA-inspired “zero gravity” flat
        has been forced to use alter-       Middle Eastern airlines, is strug-  beds in the new First Class private
        native, less fuel-efficient routes  gling with falling profits, the first  suite of its Boeing 777 aircraft.
        for flights to Europe and North  time it has faced such a situation in  The fully enclosed private suites
        America, besides suffering a  five years. The carrier’s net profit  will have floor-to-ceiling slid-
        substantial  loss  of  traffic.  The  plunged  business  to  US$340  ing doors, “virtual windows” and
        carrier’s response to the situa-    million from US$1.9 billion in the  Mercedes-Benz style interiors.
        tion has included leasing some  previous 12 months. The airline  The carrier’s 777 aircraft boast a
        of its aircraft to British Airways  has “pulled back” the expected  multi-million dollar upgrade that
        and looking at other problem-free  delivery of some of its new air-    includes newly-designed seats
        routes.                             craft and even tied up with one  and upgraded inflight entertain-
           Etihad’s strategy of expand-     of its rivals, FlyDubai, but experts  ment systems in all cabins.  While
        ing its global foothold by taking  predict that the carrier will find its  the aircraft’s business class has
        minority stakes in struggling Asian  way out of the current situation it  fully-flat leather seats with per-
        and European carriers has back-     finds itself in.                   sonal minibars, economy class
        fired  spectacularly.  It  has  also   Emirates, which pioneered the  seats have adjustable full leather
        had to deal with falling passenger  First-Class private suite concept  headrests.



        ASIAN AIRLINES & AEROSPACE                                                             January/February 2018 | 23
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