Gulf Of Difference

Sydney Morning Herald

Wednesday September 26, 2007

Jane E. Fraser

Middle Eastern airlines are spending up big to woo a slice of the Australian market.

A determined assault on the Australian airline market by cashed-up Middle Eastern carriers is bringing considerable benefits to long-haul travellers and serious headaches to other airlines.

Figures from the International Air Transport Association show Middle Eastern carriers are recording annual passenger growth of nearly 20 per cent - compared to 6 to 7 to per cent for all carriers - and Etihad Airways and Qatar Airways are joining Emirates in targeting the lucrative corporate market.

The huge budgets of these carriers allows for rapid expansion of fleets and schedules, making a dent in the profits of Asia-Pacific airlines. All three carriers are investing big dollars in first- and business-class beds, fine dining menus, good wine lists and extensive inflight entertainment.

Emirates and Etihad have a free chauffeur service for business and first-class passengers and Qatar has opened a dedicated business- and first-class terminal at its hub in Doha.

Qatar is one of only five airlines in the world to attain a five-star rating from the Skytrax organisation. It collected this year's Skytrax award for the best first-class service, while Emirates was awarded best inflight entertainment. Emirates will up the ante in the second half of next year when it takes delivery of its first Airbus 380 aircraft.

Qantas is crying foul, saying it cannot compete against government-backed carriers, but the Federal Minister for Tourism, Fran Bailey, and other federal politicians are championing the case for further liberalisation of the skies.

Emirates, which disputes claims of government backing, saying it is a self-sustaining business, has had no luck gaining access to the desirable trans-Pacific route but now operates 49 weekly flights to Australia and expects to have at least 84 in four years.

Etihad, which claims to be "the world's fastest growing new airline", flies daily out of Sydney, providing Australians with a one-stop service to multiple destinations in the Middle East and Europe. Run by respected Australian executive James Hogan, Etihad will fly three times a week from Brisbane to Abu Dhabi, with a stop in Singapore, from the end of this month.

Qatar Airways is yet to announce its launch date for Australian services, which are dependent on the availability of aircraft, but so far has rights to operate daily flights between Melbourne and Doha and is expected to gain further rights.

The three Middle Eastern carriers are breaking the mould on airline operations by staying outside the airline alliances to which most big carriers belong. The implication of this for business travellers is the inability to earn and burn points across a range of airlines, as they are able to do with Oneworld and Star Alliance.

However, each of the Middle Eastern carriers has its own scheme and research shows that the most valuable frequent flyers belong to several different programs. Emirates is also aligned with the Velocity Rewards scheme of Virgin Blue, which continues to make inroads into Australia's corporate market.

AT A GLANCE

EMIRATES

Hub Dubai, United Arab Emirates.

* Flying to Australia since 1996.

* Twice daily flights from Sydney.

* 35 weekly flights from other Australian cities.

* 90-plus destinations worldwide.

ETIHAD AIRWAYS

Hub Abu Dhabi, United Arab Emirates.

* Flying to Australia since March 2007.

* Daily flights from Sydney.

* Three weekly flights from Brisbane.

* 45 destinations worldwide.

QATAR AIRWAYS

Hub Doha, Qatar.

* Yet to announce start date for Australian services.

* Rights to fly daily from Melbourne.*

* Expected to gain rights to another city next year.

* 75 destinations worldwide.

© 2007 Sydney Morning Herald

Back to News Index | Back to Home