Etihad Airways CEO James Hogan has responded to claims that Australian carrier Qantas is failing to compete on a level playing field against Middle Eastern airlines.
Hogan said in Business Spectator that Etihad was not getting a ‘free ride’ from its Abu Dhabi home base and was subject to taxes, charges, fuel and labour costs similar to other international airlines.
“Quite why Middle Eastern airlines have become the whipping boys in the latest Qantas dispute is a mystery to me – as an Australian who is not afraid of a little competition, and as a global airline chief executive who understands that every airline juggles with a grab bag of advantages and disadvantages,” he said.
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It was not sovereign guarantees, government protection and cheap labour that underpin the success of airlines from the Middle East, he said, “and, as falsely claimed, are helping to nobble the Flying Kangaroo”.
“What is driving the increasing number of Australian travellers seeking a better alternative for their overseas travel?
"There is one basic factor: choice. That is what we have offered following the exit of a raft of European airlines over an extended period – before Etihad was even born, I should point out.
“And informing that choice are four things: network, product, service and dedicated staff.
“Certainly Qantas isn’t willing to fly through the Middle East, although it could it if chose. It has chosen instead to focus on a different part of the world.
“Quite rightly, they are taking advantage of their own geography, and their other multiple benefits, which include consistent profitability, a strong brand and a long history.
“It may be uncomfortable for established national carriers to face new competition. But that has been shown time and time again to be good for the consumer and – over the long term – good for the market.
“So please don’t blame Middle Eastern airlines for doing what they have a right to do: compete.”
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