Qatar Airways faces huge financial losses after Arab boycott



Mon, 07 Aug 2017 - 10:38 GMT


Mon, 07 Aug 2017 - 10:38 GMT

Qatar Airways - Reuters

Qatar Airways - Reuters

CAIRO – 7 August 2017: Two months after the crisis between Qatar and the Arab world, the consequences of the severe sanctions enforced on Qatar have shown huge economic losses in the tourism sector, especially Qatar Airways.

According to the Official Airline Guide (OAG) estimates, the suspension of Qatar Airways' services to Saudi Arabia, the UAE, Bahrain and Egypt amounts to about 324 flights per week. The loss of Hamad International Airport is 324 flights per week, equivalent to $200 million a day.

Following the ban on their flights over Saudi, Bahraini, UAE and Egyptian airspace, Qatar airways rented mid-range Airbus A32 planes for several airlines in an attempt to reduce losses. However, the attempt failed as the airport became overcrowded and the A32 planes were unable to cover the required distances.

In addition, a deal between Qatar Airways and American Airlines fell through a deal in which they wished to buy 10% of the American company’s shares. American Airlines refused to be associated with Qatar Airways as it is accused of receiving billions of dollars in government support, as well as the country's reputation for terrorism.

The airline's aviation expert, Ted Reed, said Qatar Airways chief Akbar Al Baker was behind Doha's loss of the American airlines deal as he “did everything wrong.”

In recently leaked statements on YouTube, Baker calls American Airlines’ air hostesses “grandmothers,” continuing to say that he only hires woman air hostesses around the age of 26 and that they are fired once they lose their looks.

These statements were described by aviation industry officials as, "harassment, transgression and elemental discrimination.”

Qatar’s economy continues to face troubles due to the current boycott.
On June 5, 2017, several countries, including Egypt, Bahrain, Saudi Arabia and the United Arab Emirates, severed diplomatic ties with Doha over accusations of Qatar backing and funding terrorist groups.



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