Qatar Airways seeks $5bn in compensation
July 22 2020 01:53 PM
HE Akbar al-Baker
HE Akbar al-Baker

*Multi-billion-dollar arbitrations launched against the UAE, Bahrain, Saudi Arabia and Egypt , citing their unlawful actions

Qatar Airways Group has launched four international investment arbitrations against the United Arab Emirates, Bahrain, Saudi Arabia and Egypt, who have imposed an illegal air, sea and land blockade against Qatar since 2017.

The arbitrations seek redress for the blockading states’ actions to remove Qatar Airways from their markets and to forbid the airline from flying over their airspace.

Qatar Airways is seeking a total of at least $5bn from the blockading states as compensation for their unlawful actions.

For three decades, Qatar Airways made substantial investments in the four blockading countries in order to serve hundreds of thousands of passengers and to transport tens of thousands of tons of cargo to and from each of these countries annually.

Starting June 5, 2017, without prior warning, the UAE, Bahrain, Saudi Arabia and Egypt took collective measures targeting Qatar Airways and its operations.

“These measures specifically targeted Qatar Airways, with the objective of shuttering Qatar Airways’ local operations, destroying the value of the airline’s investments and causing widespread damage to Qatar Airways’ global network of operations.

“In particular, these measures included, but were not limited to, closing their airspace and airports to Qatar Airways’ aircraft and revoking Qatar Airways’ licences and permits to operate in the blockading states. These measures persist to date and continue to disrupt Qatar Airways’ global operations,” Qatar Airways said in a statement on Wednesday.

Qatar Airways is seeking full compensation for these damages in four investment arbitrations, brought under three separate treaties, namely: the OIC Investment Agreement; the Arab Investment Agreement; and the bilateral investment treaty between Qatar and Egypt.

“The Notices of Arbitration make clear that by imposing the measures against Qatar Airways, the blockading states have violated their obligations under the agreements, including by expropriating and failing to adequately protect and secure Qatar Airways’ investments, discriminating against Qatar Airways, and failing to provide fair and equitable treatment to the airline and its investments,” the statement said.

Commenting on the launch of the investment arbitrations, HE Akbar al-Baker, Qatar Airways Group chief executive, said: “The decision by the blockading states to prevent Qatar Airways from operating in their countries and flying over their airspace is a clear breach of civil aviation conventions and several binding agreements they are signatories to.

“After more than three years of efforts to resolve the crisis amicably through dialogue yielded no results, we have taken the decision to issue ‘Notices of Arbitration’ and pursue all legal remedies to protect our rights and secure full compensation for the violations. The blockading states must be held accountable for their illegal actions in the aviation sector, which includes a failure to comply with their obligations under bilateral agreements, multilateral agreements and international law.

“Qatar Airways is one of the world’s leading airlines, providing millions of customers around the world with the highest level of passenger and cargo services. Despite the efforts of the blockading states, we have maintained our global position and will continue to promote air travel as a right for all.”


Last updated: July 22 2020 11:29 PM


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