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American Airlines

AA Terminates Codeshare Agreements With Qatar, Etihad as Tension Escalates

AA Terminates Codeshare Agreements With Qatar, Etihad as Tension Escalates
Jackie Reddy

American Airlines has announced that it’s terminating its codeshare partnership with the Gulf carriers in protest over the receipt of subsidies from their respective governments.

American Airlines (AA) has announced that it will be ending its codeshare agreements with both Qatar Airways and Etihad Airways, CNBC reports. The move comes in the midst of escalating tensions between AA and the Gulf carriers, which the former maintains have an unfair advantage in the market thanks to heavy subsidies from their respective governments.

The announcement came on Wednesday, just days after a Qatar’s CEO, Akbar Al Baker, collectively referred to U.S. female cabin crew as “grandmothers” at a gala dinner. Al Baker later apologized for his comments.

The move to end the codeshare also comes just weeks after Qatar announced its intent to purchase a ten percent share in AA. Doug Parker, AA’s CEO, told Bloomberg last month that Qatar’s intentions are, “Puzzling at best and concerning at worst.”

American has hastened to explain that the cessation of these codeshare agreements would not impact its financials. Rather, it said that its decision “is an extension of our stance against the illegal subsidies that these carriers receive from their governments.”

Further clarifying the move in an official statement, as quoted by CNBC, the airline explained, “In light of our ongoing dispute over the Open Skies agreements, American Airlines notified Etihad Airways and Qatar Airways on June 29 of our decision to terminate our codeshare relationships…we have reached the conclusion that the codesharing relationships between American and these carriers no longer make sense for us.”

“We are committed to doing everything we can to continue to support our team members and ensure that there is fair competition between American and the Gulf carriers,” the carrier said.

View Comments (3)

3 Comments

  1. Sydneyberlin

    July 13, 2017 at 5:45 pm

    Oh here’s the whinge again, cry me a river American. How about you work on your offerings first rather than that ever same complaint about alleged subsidies. Which is not to say that the ‘grandmothers’ comments was okay- that’s actually really poor form on behalf of Al Baker. You’d think Qatar has bigger issues at the moment, really!

  2. edgewood49

    July 14, 2017 at 11:57 am

    Not withstanding Al Baker’s comment about “grandmothers” still the real issue is the ME3 and their expansion that ALSO INCLUDES real service, eatable food and airplanes that are not in the Smithsonian. Come on American your becoming the old Delta and that didn’t work too well for them. To Delta’s credit their overall marketing and service has vastly improved and I am not a huge fan, but give them credit.

    Parker on the other hand is becoming more like Trickie Dick of DL. He complains on one hand, used US Bankruptcy Laws to mask his incompetent management shed debt. screw workers.

    Current American seems to falling into the service pattern of the old America West, pack them in cheap service as possible. And they wonder why the ME3 garners the travelers they do. I did try to fly AA to London once but when I saw I was flying on a very old 777 complete with all the out dated cabin ( was first) I switched.

    For the record for years I was a huge AA flyer/supporter but when Parker took over AA culture vanished. Hell they can’t even order uniforms

  3. UncleDude

    July 17, 2017 at 9:22 am

    What really is illegal Mr Parker is selling AAdvantage Miles at an Attractive Price. Then reducing Tens of Thousands of Reward Seats so the Miles become practically nonredeemable.

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