Qatar Airways withdraws plan to buy American Airlines stake
Qatar Airways says it has lost interest in buying a 10-percent equity stake in American Airlines after reviewing the investment, a move that might be rooted in the ongoing political rift between Doha and Washington’s regional allies.
“Further review of the proposed financial investment, taking into account the latest public disclosure of American Airlines, has demonstrated that the investment no longer meets our objectives,” Qatar Airways said in a statement, Financial Times reported Wednesday.
“Qatar Airways will continue to investigate alternative investment opportunities in the United States of America and elsewhere that do meet our objectives,” added the airliner.
The statement did not specify which public disclosure by American Airlines had prompted the decision.
Last week, the Texas-based airline posted a total revenue of $11.1 billion in the three months to June, up 7.2 percent year-on-year. The company’s passenger per available seat mile, another key industry index, was also up by 6 percent.
Earlier this month, however, American Airlines ended its codeshare relationships with the Qatari and Emirati airlines as part of its efforts against government subsidies of Middle Eastern carriers.
In response, Qatar Airways CEO Akbar al-Baker expressed disappointment over the US airline's decision, and rejected the accusation of “illegal subsidies.”
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Qatar’s state-owned airliner first announced intentions to make the deal in June.
The Doha-based carrier has a history of making high profile equity investments, owning a 20-percent stake in IAG, the parent company of British Airways.
With a fleet of more than 180 passenger aircraft, Qatar Airways employs over 40,000 people and has been awarded the "World's Best Airline" four times, the latest being in 2017.
The controversial decision comes amid the recent diplomatic fallout between Qatar on the one hand, and Saudi Arabia, Egypt, the United Arab Emirates and Bahrain—all staunch US allies—on the other.
The Riyadh-led quartet cut ties with Qatar and put it under an economic blockade on June 5, under the pretext that Doha supported “terrorism” and destabilized the Middle East.
While US President Donald Trump has been on the so-called blockaders’ side, his Secretary of State Rex Tillerson thinks the standoff should end immediately because it hurts Washington’s interest.
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