Response of the organisation to the Qatar diplomatic crisis

The organisation has been affected by the Qatar diplomatic crisis, leading to rerouting of routes and decline in passengers. The COVID-19 pandemic has further impacted the organisation's performance. The response of the organisation to the crisis has been to cut costs, secure equity, and reduce capacity. However, recovery has been slow and the future is uncertain.

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Dynamic Aviation Environment
Toolkit
A Chosen organisation
Choose one airline/airport affected by the crisis and provide a brief justification for
your choice.
Turkish Airlines is national flag carrier of Turkey airlines which was founded on May 20th,
1933 with a fleet size of 364 in 315 destinations and their headquarters is at Istanbul
Turkey. From August 2019 they have scheduled their services across America, Africa,
Europe and Asia. This makes them largest mainline carrier across world in terms of
passenger destinations. The Turkish Airlines comprises of 14 aircrafts that comprises of 2
Cessna Citation Mustang, 2 Diamond DA-42 NG and 10 Cessna 172S. By taking into
consideration pandemic situation that prevails across the world, Turkish Airlines with
cooperation of health and authorities experts have taken into consideration each detail
throughout the trip as well as have reviewed complete standards related with their health &
safety concerns. There are 37,670 employees who enables firm to render their services in
an appropriate manner.
B Current trends in aviation

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The above visual communication as well as graph or table 1, this has been inferred that in
2017 there was growth and maximised number of passengers across Dubai in comparison
to last year that is 2016. Furthermore, it is identified that that 83,654,250 passengers have
travelled in 2016 and the figure for the year 2017 is 88,242,099. In addition to this, in 2019
again there was rapid growth in the passengers who have travelled that is 89,149,387. In
addition to this, King Abduliziz and Riyadh, it is found that there is a continuous grows
within the number of countries with reference to previous year. But this has been identified
that in the Hamid and Abu, there is a sudden decline within the passengers for from 2016
to 2017 which is less as compared to 2018.

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From table 2 it has been determined that across Middle East in 2018, the percentage for
RPKs that is Emirates have grown up by 2.7% from the year 2017 which is a large number.
Moreover, thee ASK percentage has increased via 3.6%. Correspondingly, in Oman, Qatar
and Saudia, the ASKs and RPKs is enhanced at the rate 7.7%, 3.5%, 8 and 14, 5.5 and
8.4% respectively. On the other n Eithad, the percentage of RPKs is declined by -6.7% and
that of AASK is -4.5.
The 3rd table illustrates African region that have growth percentage of RPKs 8 & 4.5% and
that of ASKs is 4.2% & 7.5. Furthermore, it is predicted that in the year 2020, it will e -
50.4% and 58.5% simultaneously.
C Definitional analysis
Carry out a definitional analysis of the term ‘geopolitical’ using 3 appropriate sources.
Author (year) Definition Key points
Diego Solis, 2015 In this case, it illustrates
that geopolitical aims at
political power that is
associated with geographic
spaces (Airlines as
Geopolitical Agents of
Power, 2015). Furthermore,
airlines acts like agents for
geopolitical power and have
authority or liability to be a
bridge between core
peripheries around the
globe.
It is accountable for
illustrating complexities
associated with effects
related with airline sector.
Like covid-19 have
adversely impacted this
sector.
Andreas Haggman, 2019 The key that is associated
with acknowledgement and
mitigation of geopolitical
risks furnish holistic view
for the risk landscape. By
identification of operating
references via distinct
business resilience, cyber
reputation, weather and
atmosphere formulates
complete spectrum of
associated risks that can be
seen. Aviation industry is
exposed to certain
geopolitical risks and they
are targeted via destructive
as well as disruptive air-
travel that is being viewed
like non-green travelling
alternative.
This is mainly
acknowledged for
mitigation of geopolitical
threat that is experienced
via business related with
unlike sectors such as
aviation and various others
(Four key geopolitical risks
likely to affect aviation
industry this year, 2019).
This creates an
unfavourable influence.

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Daniel H. Deudney, 2020 Geopolitics refers to
carrying out analysis of
geographic influence
created on the power
relations within
international relations
(Geopolitics, 2020). The
term is given via Rudolf
Kjellen who is Swedish
Politician and this is used as
a spread across Europe
during 1 and 2nd world wars.
After this it is used
continuously. Within
contemporary discourage
the term has been used
widely as it is loose
synonym of international
politics that are being
conducted.
This implies identification
of geographic influences
that are being encountered
via business.
Geopolitcal is defined as term that is used for geographical threats and risks that are
acknowledged via business segments such as Aviation and various others. The reason
behind the cause of these situations is unfavourable conditions which impacts profitability,
market shares, sales and many other factors. For an instance covid-19 is the main reason
that have declined the operations and have created pessimistic impact as it have created the
situation of lockdown and people do not travel. This has affected sales margin as well as
revenue on the whole (Cui and Li, 2020). Apart from this, the employees have also been
impacted by the influence that is created as they have lost their jobs.
D Media Analysis
Carry out a media analysis of the organisation using a range of suitable sources to
determine how it has been affected by the crisis.
Source & year Type of media Headline Coverage Evidence of
bias?
Website, 2017 Article Qatar Crisis:
What you need
to know
Crisis that have
impacted Qatar
The only land
border for Qatar
was closed via
Saudi Arabia
and ships that
serve or have a
Qatari flag were
banned to dock
into different
ports. The six
Gulf co-
operations

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Council have
cut all the ties
with Oman,
Kuwait and
Qatar. In Doha
the supermarket
shelves were
emptied but
hoardings ended
up when Iran
and turkey
started
delivering food
via air (Qatar
crisis: What you
need to know,
2017). The
Qatar have to
call off aircraft
in regional
cities as well as
redirect them
via other
destination due
to certain
restrictions that
were imposed
on them. The
Hamd
International
Airport of Doha
is far. This lead
them (Qatar) to
lose stock
market shares
around 10%
within four
weeks after the
crisis took
place. The loss
was near about
$15bn.
Furthermore,
there is a
recovery of
around 6%
within the pre-
crisis value.
Egypt, UAE,
Saudi Arabia

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and Bahrain
have closed
airspace for
Qatari aircrafts
and foreign
airlines need to
have permission
to over flight
their aircrafts to
as well as from
Qatar.
Website. 2020 Article Qatar blockade:
Five things to
know about the
Gulf crisis
To
acknowledge
the Gulf crisis
which lead
Qatar to block
certain things
which creates a
pessimistic
impact on their
economy.
Qatar was
blocked via four
Arab countries
in terms of sea,
land and air.
The diplomatic
along with trade
ties were cut
with Doha as it
was claimed
that they
support
terrorism and
have ties with
Iran. This
occurred due to
hackers who
have posted
certain wrong
statements on
news agency
website of
Qatari state
(Qatar
blockade: Five
things to know
about the Gulf
crisis, 2020).
They faced high
economic
disturbance
with increased
prices of fuels
as they have to
reroute their
flights. But by
2018, the
conditions have
improvised and

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they have
recovered from
certain shocks
that have
affected their
performance. In
2017, there was
a GDP of
around 2.2%.
Due to the crisis the organisation have affected adversely, the reason behind this is that
they have to reroute their routes and distance that is involved within doing this is more.
This also implies that cost that is involved within fuel is high. Along with this, the
passengers from certain countries have been restricted to travel from and to Qatar which
means that there is decline within the number of passengers which denotes that the cost
that is involved is reduced up to the certain aspects (Cui, Wei and Li, 2016). Apart from
this, the firm have also impacted via covid-19 as because of the instructions from
government people are not travelling and this means that firm is not able to generate the
revenue.

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E Performance of the organisation
Analyse the performance of the organisation chosen over the last 3 years.
IAG have raised €2.75 bn for strengthening balance sheet after the loss have been recorded
due to corona virus pandemic and have created a pessimistic impact on the travel market.
Furthermore, later also owns Aer Lingues and Lberia, that went through a loss of around
€4.2 bn in the beginning or half year as the number of passengers have declined.
Furthermore, the aviation industry have made certain profit in the last half i.e. €1.1 bn. The
firm found that there was decline in passengers by 98% within second half and this made
them to minimise 12,000 jobs for cutting the cost. The impact of border and travel
restrictions across the mist nations illustrated that they were only able to schedule flights
for skeleton passengers which means that the capacity was decreased to 5%. In addition to
this, the group emphasised to capitalist to return back €2.75 bn equity and they have
secured support like largest shareholder for Qatar Airways. Apart from this, in the half year
the operating loss that was experienced was €2.2 bn for exceptional cost associated with
early retirement of Boeing 747 along with Airbus A 340s and cost that is related with their
fuel-hedging programmes. The respective group have been failed for seeing a hope for
recovery in the month of July as they were planning forward for developing the number of
passengers but the capacity was declined via 74% in third quarter when compared with
year 2019 and this further reduced by 46% while reaching to their fourth quarter in the
same year.
In 2017, the complete revenue that was generated by the firm was £13,021 million and the
number of passengers was 46.6 million that was a huge number. Furthermore, the group
also shared immense results, management of increasing revenue that was attained in the
previous year. The profitability was enhanced by around 6.1% that was £13,021 million.
The profit margins were dependent on discretionary spending which was dependent on
ability of their financial system. Furthermore, airlines continue to make investment within
development of cost competitiveness, customer experience along with these conduct
reliable operations, developing employees and formulating capital efficiencies. 2018
illustrated the implementation of second year plan that was given in the year 2016 and
aimed at enhancing economic foundations of the group. The number passengers were also
increased at the rate of 3.5%. The airlines are liable for providing their customers with
impelling experience and thus they have invested in £4.5 billion to £6.5 billion in
upcoming five years. The capital organisation for year 2018 was £1,218 million along with
this, 13 new aircrafts were also given by them. In addition to this, target audiences and
passengers of the organisation have also responded affirmatively to the services delivered
by them (Dursun and et. al, 2014). In 2018, more flights were brought up by them in
comparison to last decade so that people can be provided with more options. Near about 76
flights were departed but after three years there was decline within the passengers and there
were reasons behind this. The firm continuously made efforts to innovate technologies
they are making use of but in 2020 covid-19 created adverse impact on their operations.
Furthermore, the duration to which such kind of situations will prevail cannot be
anticipated. It is identified that in second quarter the adverse was high as there was
substantial decline within the traveller capacity and there were some relief policies and
plans for workers.
F Response of the organisation to the crisis
F. Determine the effectiveness of the organisation in response to the Qatar
diplomatic crisis.
The small oil as well as gas rich gulf state, Qatar has been terminated by their powerful
Arab neighbours for supporting terrorism. This was the fake post made by certain hackers
on the official website of news agency after US President came to Qatar. They declined to

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abide to initial 13 demands that were made by saying that they will not accept any
measures which will lead to endanger their sovereignty as well as opposed international
laws (İLARSLAN, VURUR and BIYIKLI, 2014). The emirates were being told by their
neighbours that they are looking forward that six broad principles that have been
formulated must be addressed by them that involves terrorism and fighting extremism.
Qatar has exercised different ambitious foreign policies by giving distinct priorities for
their neighbours but this involves basic issues and on these they have agreed within recent
years. These issues are specified beneath:
 Qatar have exercised ambitious or determined foreign policies that comprises of
diverse priorities for their neighbours. Qatar supports Islamic groups and they have
confessed that they have furnished assistance to certain Muslim Brotherhood but
denied their support for militant groups who are linked with Islamic State (IS) and
al-Qaeda.
 Qatar has relationship with Iran and they share the largest gas field across the
world. Sunni Muslim (Shia Muslim power) has ruled main region rivalry of Saudi
Arabia.
There are certain Arabic countries such as UAE (United Arab Emirates), Bahrain and
Saudi Arabia who have cut their relationship on 5th June with Qatar due to their association
with terrorism. The time period of around 14 days was given to citizens of Qatar for
leaving their territory as well as bans their citizens for travelling to or from their place.
The other Gulf country has also closed their diplomatic ties with Qatar i.e. Egypt but they
did not imposed any kind of limitations to their 1, 80,000 people who lives in the city of
Qatar. Furthermore, UAE, Egypt, Bahrain and Saudi Arabia have closed all their airspace
to the Qatari aircraft. Along with this, it was said that foreign airlines have to take
permissions for flying their aircrafts to and fro Qatar. There are two countries, Oman and
Kuwait who have not banned or abolished any kind of ties with Qatar.
Impact of Crisis-
Qatar depends on imports that are being conducted via sea and land for accomplishment of
their basic needs of 2.7 million populations and near about 40% of their food items came
via land borders that are linked with Saudi Arabia. Within the beginning the supermarket
shelves run out of the basic services or resources as people rushed for stocking them with
necessary things. But this aspect was soon addressed as Iran along with Turkey started
providing them with necessities via sea and air (Middle Eastern traffic – Diplomatic
tensions strain the region’s largest aviation markets, 2020). The international airport is
farther and they have to reroute their flights which means that more fuel has to be utilized
and also their economy was restricted as some routes were cancelled. This have created a
strong pessimistic influence on the ways in which country deliver their services and
ensured that their citizens have basic amenities for fulfillment of their requirements. Due to
the crisis they have lost near about 10% of the market shares when this took place. The
market has recovered via this. Furthermore, exports of liquefied natural gases was also not
impacted and moreover finance minister of Qatar said that they have various resources
through which country can secure their currency as well as economy from getting affected
(Qatar crisis: What you need to know. 2017). In addition to this, the firms who are working
on building up new infrastructures as well as stadiums for 2022 World Cup have to identify
different resources for fund for accomplishment of their projects. Moreover, the shipping
cost has been incremented tenfold but the country has resumed their shipping cargo via
Oman to get around from limitations that have been made for accessing ports across UAE.

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References
Book & Journals
Online
Geopolitics. 2020. [online]. Available Through: <
https://www.britannica.com/topic/geopolitics>.
Four key geopolitical risks likely to affect aviation industry this year. 2019. [Online].
Available Through: <
https://www.willistowerswatson.com/en-CZ/Insights/2019/03/4-key-geopolitical-
risks-likely-to-affect-aviation-industry-this-year >.
Airlines as Geopolitical Agents of Power. 2015. [Online]. Available Through: <
https://moderndiplomacy.eu/2015/08/13/airlines-as-geopolitical-agents-of-power/>.
Qatar crisis: What you need to know. 2017. [Online]. Available Through: <
https://www.bbc.com/news/world-middle-east-40173757>.
Qatar blockade: Five things to know about the Gulf crisis. 2020. [Online]. Available
through: < https://www.aljazeera.com/news/2020/6/5/qatar-blockade-five-things-to-
know-about-the-gulf-crisis>.
Middle Eastern traffic – Diplomatic tensions strain the region’s largest aviation markets.
2020. [Online]. Available through: < https://blog.aci.aero/middle-eastern-traffic-
diplomatic-tensions-strain-the-regions-largest-aviation-markets/>.