Qatar Airways Begins American Purchase
Joe Cortez July 06, 2017
Doha-based carrier moves to purchase 4.75 percent of oneworld partner.
Despite protests from American Airlines, Qatar Airways will begin moving forward with purchasing a 4.75 percent stake in their alliance partner. Reuters reports that the carrier is waiting on regulatory approval before purchasing the available stock.
Outspoken airline president Akbar al-Baker made the announcement in Dublin, where he was attending an event celebrating new service between the Irish capital and Doha. Qatar has previously expressed interest in acquiring up to 10 percent of their oneworld partner, but American Airlines’ policy states that no individual or company can purchase more than 4.75 percent without the board of directors’ approval. The stake is potentially valued at around $1.187 billion.
In previous communication to employees, American president Doug Parker called the plan “puzzling,” saying that he was not “particularly excited” about the potential purchase. American, along with legacy carriers Delta Air Lines and United Airlines, have been embroiled in a fight with Qatar and other Middle East carriers over alleged subsidies in violation of Open Skies agreements. al-Baker said he is convinced that American will come around.
“My dear friend Doug Parker, a big supporter of oneworld […] is now frightened of a oneworld carrier wanting to take a stake,” al-Baker told reporters, as quoted by Reuters. “Maybe once we have taken that 4.75 and they see the value that Qatar Airways brings to the table for them that they will reconsider.”
The purchase announcement comes as Qatar Airways faces challenges due to diplomatic troubles with surrounding nations. Al-Baker said that the stake would not be used to sway American’s stance on the Middle East carriers, but would rather add to their portfolio of airline investments. Qatar Airways currently owns stakes in Europe’s International Airlines Group and South American carrier LATAM.
[Photo: Shutterstock]
Fair competition is not allowed, the U.S carriers have been crying to the government for a while about the ME3 stealing their customers. The U.S carriers could very easily compete against the ME3 but don't want to pay to upgrade their planes or provide even a semi decent customer experience despite most of them posting record profits over and over again.
what does that even mean?
Interesting development. What is there to whine about in Trumpland? Fair competition not allowed?