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Qatar Airways continued to expand rapidly inbut now faces fresh threats from regulators in the US and EU who may judge that its growth has only been possible because of state subsidies that violate competition rules and Open Skies agreements.
In particular, the new US president, Donald Trump, appears sympathetic to this view. However, action against the company may face some potential obstacles and the impact on its growth could be partially offset by growth in other markets. Qatar Airways has been achieving strong double-digit growth rates in recent years. With high capacity utilisation, the main checks on its growth appear to have been delays in plane deliveries and access to landing slots at popular airports.
Geographically, the Gulf is well located as a hub for long-distance transcontinental journeys and the Gulf airlines have successfully won lucrative business on key routes away from traditional airlines, including in the US and EU, who have simultaneously been losing short-haul business to low-cost carriers. The backlash against this has been particularly intense in the US, where the three major international airlines—American, United and Delta—joined together to form the Partnership for Open and Fair Skies, a lobbying group calling for a review of the bilateral Open Skies aviation agreements between the US and Qatar and the UAE.
This initiative floundered under the former US administration, which indicated that it felt that the Gulf airlines benefited consumers through increased choice and lower prices. Although the US engaged in some informal discussions with Qatar about the issue init did not suggest that there has been any treaty violation. He noted that within an hour of his election last November he had started receiving lobbying calls about the issue and said, without mentioning any names, that a lot of competition in the sector was unfairly subsidised by governments.
Concerns puts options qatar airways unfair competition from the Gulf are not limited to the US. However, in early February details leaked of a draft proposal from the European Commission to revamp an ineffectual aviation competition law, which was originally focused on transatlantic competition from US airlines.
The strengthened law would enable the EU to impose duty or suspend the flying rights of airlines judged to have harmed European airlines as a result of government subsidies or other favourable treatment.
The draft law is expected to be published in late April. Qatar currently has bilateral agreements with some individual European states, but only began negotiations for a comprehensive air services agreement with the EU in September, in Doha, in meetings attended by the European Commission's puts options qatar airways of puts options qatar airways transport affairs, Carlos Acosta.
The new draft law could puts options qatar airways stall these discussions. It is unlikely that anything will happen quickly and even if the challenges eventually put a halt on growth in the US and Puts options qatar airways, Qatar Airways has other options for growth on other routes, notably in Africa, where talks are under way to take a stake in Royal Air Maroc, and in India, whose government suggested in January that Qatar take a stake in a local airline or start a new one.
The potential puts options qatar airways challenges in the US and EU are no doubt a serious cloud on the horizon for Qatar Airways, and survival under such restrictions will require an aggressive puts options qatar airways strategy in other markets. Skip to main content Register Log in.
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