Flybe in balancing act as UK economy stumbles

UK regional carrier Flybe is mitigating the downturn in its home market by shifting capacity to Europe, pursuing new codeshare partnerships at Manchester airport, and increasing its oil hedging exposure, chief executive Jim French and CFO Andrew Knuckey said in a media briefing this morning (11 June).

Speaking after the company posted a pre-tax loss of £6.2 million ($9.64 million) for fiscal 2011/12 – marginally beating analyst forecasts – French blamed losses at Flybe Finland, the new joint venture with Finnair, and the opening of a new training academy in Exeter for bringing down the full-year results.

But he emphasised the "resilience" and "scale" of the business model, promising that new regional partnerships and flexibility over aircraft options will mitigate short-term headwinds, positioning the airline to benefit from an eventual macroeconomic recovery.

Qatar ready for take off

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When the New Doha International Airport (NDIA) opens its doors on 12 December 2012, the Gulf's youngest aviation hub will be able to handle 12.5 million passengers per year – more than eight times the current population of Doha. By the time it is completed in 2015, the 5,400 acre site will be almost two-thirds the size of the capital.

Qatar Airways chief executive Akbar Al Baker, who also heads up the development of NDIA, admitted last month that the project would come in more expensive than planned. His latest estimate pegs it at $17.5 billion (QR64 billion), and few will be surprised if costs rise further.

But for Qatar, which has allocated 40 percent of its budget between now and 2016 to infrastructure projects, this is undoubtedly a price worth paying. The tiny Gulf emirate places aviation at the heart of its economic growth plans – matching commitments by the governments of Abu Dhabi and Dubai – and NDIA will be the centrepiece of Doha's strategic vision to become one of the busiest transit hubs in the world...

Winds of change

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For a man more accustomed to castigating his European rivals, Akbar al Baker, the chief executive of Qatar Airways, caught many observers off guard at this year's Arabian Travel Market. Far from berating Willie Walsh, the CEO of British Airways, al Baker heaped praise on his competitor, describing him as a "good friend" and hailing his uncompromising management style.

“I respect what he did for British Airways,” the Qatari fawned, in reference to the 2010 cabin crew strikes. “He stood up to the unions and won at a very difficult time. And he doesn’t badmouth the competition. I always say that if you cannot defeat someone, you should make an ally of them.”

Al Baker’s conspicuously chummy tone did not come entirely out of the blue. Walsh, in contrast to many European counterparts, has long given credit to the Gulf carriers. Two years ago, for example, he accused neighbouring legacy airlines of preferring to “bitch and moan” about Gulf competitors, rather than getting their own houses in order. But even so, camaraderie between the Gulf and Europe has until recently been a rare sight in aviation circles...

Libyan Airlines fights back

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Of all the images broadcast during the Libyan uprising, few encapsulated the chaos of war more than the charred tailfin of an Afriqiyah Airways Airbus A300 – caught in the crossfire as rebel fighters descended on Tripoli International Airport.

Alongside the grave humanitarian toll of the eight-month conflict, Libya's fledgling civil aviation infrastructure was razed almost beyond recognition.

Just two of Afriqiyah's aircraft emerged from the war unscathed, and sister flag carrier Libyan Airlines fared no better at escaping the carnage. The older state-owned airline lost one A300 and one Bombardier CRJ900, in addition to suffering gunfire and mortar damage on its remaining seven CRJs and four Airbus A320s...

Qatar's diplomatic act

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In April 2011, Syrian state media reported that Sheikh Hamad bin Khalifa al-Thani, the Emir of Qatar, had sent a letter to Damascus pledging his support against "the conspiracy targeting its security and stability". Just one year on, and the same government mouthpiece now accuses Qatar of masterminding that conspiracy. Such is the nature of international diplomacy.

Qatar's new perspective of Syrian president Bashar al-Assad could not be clearer – Sheikh Hamad closed the Qatari embassy in Damascus last July, and by February 2012 was openly calling for the arming of Syrian rebels. What is less apparent, though, is how this hawkish approach fits in with Qatar's self-styled reputation for being a regional peacemaker...

Qatar making a noise

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Speaking at the Global Aerospace Summit in Abu Dhabi last month, Akbar al Baker, the chief executive of Qatar Airways, surprised no-one when he announced that the flag carrier expects to double in size by 2020. While that prediction would be met with derision if uttered by one of Europe or North America’s legacy airline bosses, Qatar has for years been staking its claim in the rising fortunes of the Gulf aviation market.

From its humble beginnings in 1994, when it started operations with a wet-leased Boeing 767, Qatar Airways has lived up to the emirate’s reputation for punching above its weight...

Saudia looks for direction

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Despite being the Middle East’s third largest carrier by revenue, Saudi Arabian Airlines, or Saudia as it is often still known, rarely features in discussions about Gulf aviation. The kingdom’s flag carrier has a reputation for shying away from the limelight, due in part to its beleaguered domestic market, and in part to the pre-eminence of more media-savvy rivals in the United Arab Emirates (UAE) and Qatar.

This coming year, however, Saudia will throw itself onto the global stage like never before. Against a backdrop of gradual privatisation, the airline will join the SkyTeam airline alliance in May – kick-starting a strategic plan which, if successful, will see business travellers in the Americas, Asia and Europe fuelling profitability...

The runway that won't go away

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Before Britain’s Conservative Party could form a coalition government with the Liberal Democrats in May 2010, negotiators from both sides had the unenviable task of reconciling some of their less-than-complementary policies. One issue that required no wrangling, however, was the proposal for a third runway at London's Heathrow Airport, which was buckling under the pressure of operating at 98% capacity. David Cameron, the Conservative leader, had already broken with party tradition by opposing expansion at the airport, and the greener Liberal Democrats had long supported west London's NIMBY (Not In My Back Yard) residents. Ironically, this easy consensus has now become one of the coalition's toughest dilemmas...

Still waiting for the tide to turn

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Bahraini flag carrier Gulf Air has made no secret of its desire to cut underperforming routes, nor has it downplayed the impact of the Arab Spring on its operations. Even so, last month’s culling of four more destinations from the airline’s route network – Athens, Milan, Kuala Lumpur and Damascus – caught many observers by surprise. Set against a backdrop of intense parliamentary scrutiny that has at times bordered on enmity, some are beginning to ask questions about its future.

There is no denying Gulf Air had a torrid time in 2011. Bookings fell by 25 per cent in the first five months of the year as regional unrest spooked foreigners and parliament banned flights to Iran, Iraq and Lebanon – fearful that groups like Hezbollah might antagonise the country’s Shia population. Factor in high oil prices, and it is little wonder that Gulf Air’s much-lauded recovery plan, which had targeted profitability by 2013, was aborted in January...

Interview: Khaled Taynaz, Libyan Airlines CEO

Libyan Airlines planning CSeries order, EgyptAir wet leases

Libyan Airlines has conducted a viability study into the Bombardier CSeries and will likely order four to eight of the aircraft, chief executive officer Khaled Taynaz has said. The Libyan flag carrier is currently repairing its existing Bombardier CRJ900s, which were damaged during last year's revolt against Muammar Gaddafi, but has received a "very good offer" to upgrade the models in about four years. Taynaz is also poised to sign a short-term lease with EgyptAir for some of its Airbus A330s, though the paperwork has yet to be finalised and upcoming merger partner Afriqiyah Airlines may alternatively loan the aircraft.

Outlining Libyan's fleet renewal plans in his first interview since the civil war, the CEO said repair work on damaged aircraft had progressed well and that the carrier is now turning its attention to long-term expansion. Five of the airline's eight CRJ900s have already been restored by Lufthansa, while two more should be airworthy by April and the eighth will be decommissioned. Libyan had also signed a five-year maintenance contract with Air France-KLM, which will complete repair work on the last of four damaged Airbus A320s by the end of February.