Gulf Carriers Alliances and Networks

It must be taken to note that Gulf-based carriers are increasingly driving the equilibrium of the global aviation industry. Even with the presence of other global and regional aviation giants, three names tend to reappear namely Emirates (EK), Qatar Airways (QR) and Etihad Airways (EY). This report will focus on these larger players in the Gulf region.Despite the relatively recent creation of these three aviation giants, it is increasingly clear that market competition needs to catch up with the undisputed market leader Emirates. The competition provided by Qatar Airways could have led to some positive results but Emirates was able to overtake such competition due to Qatar Airways’ weak slot availability and due to their overlapping networks.In contrast, Etihad Airways began to increase its global outreach in 2011 by buying strategic networks globally. In response to the artificial growth posed by Etihad Airways, Qatar Airways was cornered to take up aviation alliances throughout the globe. Moreover, following the global fiscal meltdown, aviation operators were forced to take onto helping hands. It has become clear that Etihad Airways has taken onto a solid business strategy of approaching ailing airlines in order to rescue them and to control their operations.From the perspective of ATR, it has become clear that Emirates will not be looking to buy or influence the selling of turboprop aircraft since such models do not suit their long haul strategy. The behavior of Qatar Airways is similar too. However, when Etihad Airways is considered, it already holds equity in a number of airlines that are considered to be good consumers of ATR aircraft. ATR needs to look into how it can influence Etihad’s buying decisions especially via its newly acquired aviation operators and their future purchases of aircraft.Over time, the Middle East has assumed a significant portion of the global air traffic.

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