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Qatar Airway's $200-billion dollar threat to European airports

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Qatar Airways Chief Executive Akbar Al Baker attends a news conference at the International Tourism Trade Fair (ITB) in Berlin, March 4, 2015. Reuters / Axel Schmidt

Outspoken chief executive of Qatar Airways tells Dutch to forget about deals in Doha after it's denied landing slots.

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The chief executive of Qatar Airways has issued a barbed warning to international airports by demanding a greater number of landing slots in return for access to lucrative government contracts in the gas-rich Persian Gulf sheikhdom.

Speaking in the Netherlands after the Dutch government temporarily declined to provide Qatar Airways with more landing slots Akbar al-Baker warned that companies could face exclusion from billions of dollars worth of infrastructure developments.

Mr al-Baker said at a press conference: “If you don’t allow us to benefit in a small way by bringing us additional flights to the Netherlands, then you should not expect a lot of commercial contracts from our government.”

Although aimed solely at Dutch authorities his remarks will raise concerns among European and US airlines which are increasingly being squeezed by the rise of powerful commercial air operators such as Qatar Airways and Emirates, which have been accused of benefitting unfairly from government support.

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Both airlines vigorously deny such claims but Mr al-Baker's threat to the Dutch will fuel worries over the power these airlines can now exert. Qatar Airways is also the biggest shareholder in British Airways owner AIG, which is part of a growing trend among Gulf operators to acquire stakes in rivals outside the Middle East.

Qatar plans to invest up to $200bn over the next decade building infrastructure and is one of the biggest markets for construction and engineering for UK and European companies, which face stiff competition for contracts from Asian rivals.

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REUTERS/Regis Duvignau

The sheikhdom, which is one of the world's largest suppliers of natural gas to the West, is also embroiled in the scandal surrounding FIFA's decision to hand it rights to host the 2022 World Cup. Officials from the small Persian Gulf country are alleged to have bribed officials in order to secure the event. Swiss officials have arrested a number of FIFA officials and launched criminal investigation into the award of the World Cup to Qatar and Russia.

Often outspoken, Mr al-Baker - who also sits on the board of Heathrow Airport - has been a fierce supporter of plans to build a third runway west of London. Last year he said that Britons were making an "excessive" fuss over noise pollution around airports and urged terminals in Europe to embrace 24 hour landing and take-off.

Read the original article on The Telegraph. Copyright 2015. Follow The Telegraph on Twitter.
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