Doha - Once again, Qatar Airways' name has cropped up in connection with either being a strategic partner or a candidate for entering into a management contract with an ailing airline.
Troubled Bangladeshi national carrier Biman Bangladesh Airlines has floated Qatar Airways' name as one of its ideal candidates to take it over or, at the very least, manage the airline.
Zial Huq Mamum, a Biman director, mentioned Qatar Airways as a possible partner along with Emirates, British Airways or Thai Airways. Singapore Airlines has firmly said it has no interest while a Qatar Airways official had no comment.
Given Qatar Airways' reluctance to enter into partnerships, other than for code-sharing agreements, it appears extremely unlikely it will move in on Biman.
When Emirates did not renew its management contract with SriLankan, Qatar Airways was one of the airlines mentioned as a candidate to replace the Dubai-based carrier. Qatar Airways then also said it had no interest in entering into a management contract with SriLankan.
Much like sovereign wealth funds like the Qatar Investment Authority being mentioned as potential investors in troubled banks, other airlines seem to view Qatar Airways as a cash cow ready to move in at the drop of a hat.
In February, Akbar Al Baker, Qatar Airways CEO, had said at a conference on airports here: "We will invest overseas but not before we finish our investments here. We do not want to go down the path of Swiss, which made investments elsewhere, then lost focus and eventually collapsed."
Al Baker said the airline had been approached by major EU-based carriers to enter into strategic partnerships but Qatar Airways had rebuffed the advances. "The opportunity has to be attractive for any investments," he said.
In that case, Biman is hardly an ideal candidate for Qatar Airways' investment in terms of finances or management. A task force has been formed in Bangladesh to revive the moribund Biman, which has been plagued by corruption, too many employees on its rolls and major financial losses. An ageing fleet that includes four DC-10-30 aircraft, three Airbus A310-300s, three F-28s and two Boeing 747s taken on lease has meant many of the aircraft are more often grounded than in the air.
However, the airline has placed an order for 10 Boeing 777 and 787 aircraft at a cost of $1.26bn, which seems to indicate the airline is keen on getting back into business, although it may have to do so without Qatar Airways' help.
By Rabin Gupta
© The Peninsula 2008
