H.E. Al Baker talked frankly regarding the state of the aviation sector in the wake of the global health crisis. He also gave some insight into the market’s future.
H.E. Al Baker does not expect the demand over the subsequent three to five years would rise to the rate of 2019. He thinks it would require a miracle in the present atmosphere to reach these amounts. Therefore, the businessman believes that if a second wave occurs, and more airlines begin to merge, issues may occur, especially concerning Qatar’s neighbors.
“I don’t believe that there are so many carriers remaining whether there’s a second surge or a restructuring. How would you merge yourself for somebody who’s the opponent right over you? Because what happened to everyone in 2017 is never forgiven, that won’t get out of sight,” he said in the interview.
“We see a discussion about the unification of Emirates and flydubai, but there would never have been a flydubai because that’s what happens now with our other competitor, Abu Dhabi. The Etihad has collapsed entirely and is now trying to send JVs to foreign airlines, such as Wizz Air.”
Al Baker believes that cost-effective outfits in the Gulf zone have no chance. In addition to the perception that high-quality passengers are accustomed to in the country, he said LCCs are more suited for some broad catchment areas. Such corporations have an extensive domestic network, but the Gulf may not have that.
Al Baker has claimed all low-cost long-haul airlines crash. He listed several instances of Joon, Scoot, Germanwings, and AirAsia X.
Over the last few months, a massive shift has occurred in the aviation industry, and this change will continue for several more years. Therefore, there will undoubtedly be changes in the way people travel. However, certain passenger habits will remain the same, according to Al Baker.
Watch Recovery Townhall 22th Edition: H.E. Akbar Al Baker