Qatar Airways seeks major stake in American Airlines

Qatar has been criticised recently for unfair competition

Qatar airways intends to invest at least $808 million (€724 million) in American. (Photograph: Mike Fuentes/Bloomberg)

Qatar airways intends to invest at least $808 million (€724 million) in American. (Photograph: Mike Fuentes/Bloomberg)

 

Qatar Airways, one of three Persian Gulf carriers that large US carriers have criticized for unfair competition, is seeking to acquire a major stake in American Airlines Group.

The Doha-based carrier intends to invest at least $808 million (€724 million) in American, the US carrier said Thursday in a regulatory filing. In a conversation between the chief executives of both companies, Qatar Air said it intended to buy about 10 per cent of American, according to the filing.

The unsolicited approach sets a new stage in a battle in which American and other major US airlines have accused Middle Eastern carriers of receiving government subsidies that give them an unfair advantage in international air travel. A 10 per cent stake would place state-owned Qatar Air among American’s largest shareholders, equal to Warren Buffett’s Berkshire Hathaway.

American said the proposed investment doesn’t alter its conviction on the need to enforce agreements with “the nation of Qatar and ensure fair competition with Gulf carriers.” The Fort Worth, Texas-based airline said it believes the US government will continue to defend against “massive carrier subsidies that threaten the US aviation industry and that threaten American jobs.”

The US carrier said anyone seeking to acquire at least 4.75 per cent of the company’s stock is required to receive approval from its board. The company said it hadn’t received any such notice. Foreign ownership laws also limit a foreign voting interest to 24.9 per cent, the airline said.

-(Bloomberg)

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
GO BACK
Error Image
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.
Screen Name Selection

Hello

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.