The Fall of Qatar Airways

The boycott of Qatar was certain to have repercussions and now Qatar Airways is the one facing the effects. Akbar Al Baker, responsible for the management of the airlines from 1997, has finally admitted that Qatar Airways cannot keep operating unless they are provided support by the government, 11 months after the crisis unfolded.

Qatar Airways was once an incredibly successful airline and made billions over the years. However, thanks to the crisis, it is now looking at massive losses. In fact, it has asked the Qatari government to provide it with support since it cannot survive on its own anymore. This is, of course, due to the political positions of Qatar as well as the repercussions of the boycott. This crisis has worsened the condition of the airline, apart from resulting in a massive impact on the Qatari economy.

Akbar Al Baker has stated that the airline does not require assistance immediately. However, he has also admitted that the current situation is difficult. If the boycott is not removed, the airline will have to look for assistance from the government for its survival.

Al Baker has stated that Qatar Airways will eventually require that assistance sooner or later. However, if the airline does get government subsidies, it can result in a new crisis, this time with American airlines. To avoid this, the Qatari government will have to inject capital. In other words, the money provided by the government cannot be considered to be a grant but rather an increase in the airline’s capital.

It has only been recently that Qatar Airways started making its financial results public. Since it is a private company that is owned by the government, it does not have to. Back in 2016, the airline posted its financial statements that showed an increase in net operating profits by 328%. However, the boycott will be forcing Qatar Airways to post losses for the first time in its history.

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