Qatar Airways Eyes 10% Stake in American Airlines
The timing of the Qatar Airways approach also adds a complication to the United States government’s increasingly troubled relationship with Qatar, the tiny but wealthy Persian Gulf Arab emirate
that borders Saudi Arabia and is home to the largest American military air base in the Middle East.
By MICAH MAIDENBERG, AMIE TSANG and RICK GLADSTONEJUNE 22, 2017
Qatar Airways has expressed interest in buying up to 10 percent of American Airlines, an unsolicited approach
that comes amid criticism from United States carriers that Persian Gulf competitors have an unfair advantage.
Several United States carriers, including American Airlines, have complained to the Trump administration about the subsidies
that the Persian Gulf airlines receive from their government backers.
American, along with other major domestic players, has accused Qatar
and other Gulf airlines of violating air treaties, called Open Skies agreements, by fueling their growth with huge subsidies from their government backers.
American said in the securities filing that the proposed transaction “does not alter” its conviction
that the federal government must enforce its Open Skies deal with the Qatari government to “ensure fair competition.” Matt Miller, a spokesman at American Airlines, declined to comment beyond the securities filing.
The state-owned Qatar Airways said it intended to buy the American carrier’s stock
on the open market, according to a Securities and Exchange Commission filing.