AA Says QR / Qatar Airways Interested in Buying 10% Stake
#16
Suspended
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,095
#17
Join Date: Jan 2009
Location: OKC
Programs: IHG Spire, National Exec, AA Plat
Posts: 2,274
That's why my mileage for this year on AA is 0. Once I burn the miles I have (which is increasingly hard to do for a reasonable rate), I'm out.
#18
Join Date: Jun 2014
Posts: 117
Qatar Ailines reportredly considering 10% position in American Airlines
Shares of airline companies rallied in premarket trade Thursday, after Qatar Airways expressed interest in buying a large stake in American Airline Group Inc. AAL, +0.97% American said Qatar had interest in buying 10% of its common stock outstanding. Based on American's market capitalization as of Wednesday's close, a 10% stake would be worth about $2.39 billion. American's stock ran up 5.3% in premarket trade. Among other air carriers, shares of United Continental Holdings Inc. UAL, -0.32% rose 1.3%, Delta Air Lines Inc. DAL, +0.68% climbed 1.4%, Southwest Airlines Co. LUV, +0.70% gained 1.9%, JetBlue Airways Corp. JBLU, -0.71% advanced 1.2% and Alaska Air Group Inc. ALK, +0.31% tacked on 1.1%. The NYSE Arca Airline Index XAL, +0.08% has gained 3.8% year to date, to close Wednesday 2.5% below the near 16-year high hit on June 7. The S&P 500 SPX, +0.18% has gained 8.8% year to date.
***
http://www.marketwatch.com/story/air...ake-2017-06-22
***
Yowser ! That's a pretty surprising and controversial development to say the least.
***
http://www.marketwatch.com/story/air...ake-2017-06-22
***
Yowser ! That's a pretty surprising and controversial development to say the least.
#19
Join Date: Apr 2007
Location: SEA
Programs: UA Plat, AS MVP, HH Gold, MR Gold
Posts: 1,848
This is an interesting development. I could certainly see why the ME3 would want to strengthen partnerships in the US to service more connecting traffic. A couple questions:
1. There are three ME3 and three US majors, so matchmaking could be good. However, EK seems pretty tight with AS. Could a major get left out? Could it be UA?
2. How much ownership stake would it take for the US3 to quit whinging about all the subsidies?
3. Interesting QR is the first to make this move, especially given their recent marginalization in the region (with the concurrence of the US administration). Why now?
1. There are three ME3 and three US majors, so matchmaking could be good. However, EK seems pretty tight with AS. Could a major get left out? Could it be UA?
2. How much ownership stake would it take for the US3 to quit whinging about all the subsidies?
3. Interesting QR is the first to make this move, especially given their recent marginalization in the region (with the concurrence of the US administration). Why now?
#20
Join Date: May 2012
Location: HNL
Programs: AA PP 1.8MM, PC Spire, Hertz 5*, Hyatt Globalist
Posts: 1,030
#21
FlyerTalk Evangelist
Join Date: Mar 2013
Programs: DL PM, MR Titanium/LTP, Hilton Diamond
Posts: 10,130
OMAAT has an internal statement from Doug Parker and it's a doozy. Bolding mine:
OMAAT link:
As you likely know by now, American recently received notice as part of the Hart-Scott-Rodino Act (a federal process governing large purchases of stock of publicly traded companies) that Qatar Airways has indicated its desire to make an investment in American Airlines.
American Airlines is a publicly traded company, which means our stock is available for anyone to purchase on the Nasdaq Stock Market. We don’t own those shares – they belong to the shareholders who own this company – and we cannot control who sells or purchases them. But this is an important development for American and one I wanted you to hear about from me directly.
While anyone can purchase our shares in the open market, we aren’t particularly excited about Qatar’s outreach, and we find it puzzling given our extremely public stance on the illegal subsidies that Qatar, Emirates and Etihad have all received over the years from their governments. We remain committed to that effort, and we will remain so even with this potential investment.
While today’s news for some of our team may be puzzling, at best, and concerning, at worst, here’s what we know for sure: We will not be discouraged or dissuaded from our full court press in Washington, D.C., to stand up to companies that are illegally subsidized by their governments. We stand for American Airlines, and we stand for all of you and the amazing work you do every day, around the globe, to take care of our customers.
If anything, this development strengthens our resolve to ensure the U.S. government enforces its trade agreements regarding fair competition with Gulf carriers, because we must make it crystal clear that no minority investment in American will ever dissuade us from doing what is right for our team members, our customers and all of our shareholders. And do not worry, per U.S. law, no foreign entity can own more than 25% of a U.S. airline, so there is no possibility that Qatar will be able to purchase enough of American to control or influence our Board, management or our strategy.
Of course, it may just be that Qatar Airways views American Airlines as a solid financial investment, because of the great work you all are doing every day. In that case, we would agree with them. Your results are earning the confidence of our customers and our shareholders every day, and it’s a privilege to work with and for all of you. Thank you for making American all it is and will be in the future.
American Airlines is a publicly traded company, which means our stock is available for anyone to purchase on the Nasdaq Stock Market. We don’t own those shares – they belong to the shareholders who own this company – and we cannot control who sells or purchases them. But this is an important development for American and one I wanted you to hear about from me directly.
While anyone can purchase our shares in the open market, we aren’t particularly excited about Qatar’s outreach, and we find it puzzling given our extremely public stance on the illegal subsidies that Qatar, Emirates and Etihad have all received over the years from their governments. We remain committed to that effort, and we will remain so even with this potential investment.
While today’s news for some of our team may be puzzling, at best, and concerning, at worst, here’s what we know for sure: We will not be discouraged or dissuaded from our full court press in Washington, D.C., to stand up to companies that are illegally subsidized by their governments. We stand for American Airlines, and we stand for all of you and the amazing work you do every day, around the globe, to take care of our customers.
If anything, this development strengthens our resolve to ensure the U.S. government enforces its trade agreements regarding fair competition with Gulf carriers, because we must make it crystal clear that no minority investment in American will ever dissuade us from doing what is right for our team members, our customers and all of our shareholders. And do not worry, per U.S. law, no foreign entity can own more than 25% of a U.S. airline, so there is no possibility that Qatar will be able to purchase enough of American to control or influence our Board, management or our strategy.
Of course, it may just be that Qatar Airways views American Airlines as a solid financial investment, because of the great work you all are doing every day. In that case, we would agree with them. Your results are earning the confidence of our customers and our shareholders every day, and it’s a privilege to work with and for all of you. Thank you for making American all it is and will be in the future.
#22
Senior Moderator and Moderator: American AAdvantage & TravelBuzz
Join Date: Nov 2007
Location: BOS
Programs: AA EXP, Marriott Titanium
Posts: 10,419
#23
FlyerTalk Evangelist
Join Date: May 2012
Location: MCO
Programs: AA, B6, DL, EK, EY, QR, SQ, UA, Amex Plat, Marriott Tit, HHonors Gold
Posts: 12,809
#25
Join Date: Dec 2004
Posts: 2,866
Qatar Airways set to start buying shares in American Airlines
What do you think? US airlines have given up their leadership in aviation, and maybe they could inspire US airlines to buy the 747-8 or Airbus A380, to make US airlines "Great Again," but what do you think about foreign entities taking major interests in US airlines that could give them substantial effective control?
#27
Join Date: Apr 2001
Location: Austin
Posts: 4,629
What do you think? US airlines have given up their leadership in aviation, and maybe they could inspire US airlines to buy the 747-8 or Airbus A380, to make US airlines "Great Again," but what do you think about foreign entities taking major interests in US airlines that could give them substantial effective control?
How do you define "substantial effective control". They can't take voting control of course. Could a small investment that QR is making give them some small influence? Probably. I don't think anyone - even AA - believes QR is doing it because it is a good standalone, arm's length financial investment.
#28
Moderator: American AAdvantage
Join Date: May 2000
Location: NorCal - SMF area
Programs: AA LT Plat; HH LT Diamond, Maître-plongeur des Muccis
Posts: 62,948
An airliner of size doesn't make an airline "great". BA has A380 and B747-400. Great? Once upon a time. And AA (and HP!) learned 747s are poison to their routes. Heck, even Lufti decided to get rid of their 747-8s, and released the schedule a couple of years ago. So many airlines dump the bump I'm wondering why the OP thinks heavy metal is equatable with "greatness", whatever that is.
(USA airlines can not have more than 25% foreign investment.)
(USA airlines can not have more than 25% foreign investment.)
#29
Join Date: Dec 2010
Location: DEN
Programs: AA EXP, AA Million Miles, Hilton Diamond
Posts: 2,586
Not sure we need another thread on this topic, being dicussed here:
https://www.flyertalk.com/forum/amer...-10-stake.html
https://www.flyertalk.com/forum/amer...-10-stake.html
#30
Join Date: May 2012
Location: HNL
Programs: AA PP 1.8MM, PC Spire, Hertz 5*, Hyatt Globalist
Posts: 1,030
What do you think? US airlines have given up their leadership in aviation, and maybe they could inspire US airlines to buy the 747-8 or Airbus A380, to make US airlines "Great Again," but what do you think about foreign entities taking major interests in US airlines that could give them substantial effective control?