Qatar Airways dumps plan for American Airline stake

Qatar Airways has dropped a plan to acquire up to a 10% stake in American Airlines, according to press reports. In a statement, the Middle Eastern carrier said that “taking into account the latest public disclosure of American Airlines”, the investment “no longer meets our objectives”.
The US carrier had vociferously opposed Qatar’s intentions, announced in late June, to build up a significant stake in American. The carrier has been one of the leading protagonists in a campaign against what it sees as unfair public subsidies paid to Qatar, as well as to other Middle Eastern carriers such as Etihad and Emirates.
American openly opposed Qatar’s plan to invest up to $800m in a 10% stake, pointing out that its board could veto any investment of more than 4.75% of its shares. It also cancelled a code-share agreement.
The Middle Eastern carrier’s motivations for wanting to buy into the US airline are unclear. Publicly, it said that it saw a slice of American as a good investment. However, some analysts saw it as an attempt to try and defuse the campaign by American Airlines and other major US carriers against its alleged state funding.
Qatar’s recent troubles with its neighbours – Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have imposed a trade and air embargo over Qatar’s alleged support for extremist groups – may also have been a factor in the airline’s decision to draw in its horns. The embargo has forced Qatar Airways to cancel regional flights and ground some of its aircraft.

Share this story

Related Topics

Latest acquisitions news

Scan Global Logistics set to expand to Brazil with latest deal

Fast-growing freight forwarder Scan Global Logistics (SGL) looks set to continue its global expansion with the addition of a presence…

Read More

Share this story

Mondiale VGL expands in Asia with Interunion takeover

New Zealand-headquartered freight forwarding and logistics company Mondiale VGL has acquired Southeast Asia-based multimodal forwarder Interunion. Prior to the acquisition,…

Read More

Share this story

OIA expands to Ireland with acquisition of Sandford Freight

US supply chain services company OIA Global has extended its European network to Ireland with the acquisition of Dublin-based multimodal…

Read More

Share this story

Air Cargo News

Air Cargo News
Established in 1983, Air Cargo News is the leading source of news, information, interviews, analyses and reports to the global airfreight industry. Our leading portfolio includes print, digital and events that give businesses in the airfreight industry the ability to connect with decision-makers in this sector.