ashill

Read the discussion in the thread I linked to (http://www.flyertalk.com/forum/ameri...solidated.html). This --- some form of the claim that PHL-TLV was the most profitable routes in US's system --- was conventional wisdom on FlyerTalk and elsewhere, including amongst some very knowledgable posters (including, if I remember correctly, JonNYC). However, that conventional wisdom turned out to be completely wrong, as Doug Parker detailed (see, eg, post 448 in that thread and the discussion thereafter) and some of the posters with the strongest track records here (including YTravelF and JonNYC) confirmed.

The claim that AA cutting PHL-TLV was somehow tied to QR (the way this discussion resurfaced in this thread), makes no sense whatsoever. To make that claim, you need to make two completely unfounded assumptions:

1. QR cares if AA flies PHL-TLV.
2. QR has any ability to prevent AA from flying to TLV.

On 1, DOH and TLV are, as far as I know, completely disjoint markets. I would guess that there is absolutely no overlap; someone wanting to go to or through DOH does not have TLV as an option or alternative, and vice versa. So I don't see how QR has any economic incentive to care one way or the other about AA serving TLV. So the only reason I can see that QR would have to want AA not to serve TLV is open anti-Semitism. I have my issues with QR the airline and Qatar the country to be sure (though I don't claim to be at all knowledgable about either), but I don't see any reason to believe that the corporation would act that way.

On 2, QR has no ownership stake in AA (the topic of this thread) and no joint venture with AA. They're just an arms-length partner through oneworld, not even any longer a codeshare partner. And even if QR did buy 10% or the maximum 25% of AA, they would be legally prohibited from having any control over AA decision-making under US law.

dstan

Folks, let's reign in the personal comments and focus on the Qatar Airways topic. Any discussion of the PHL-TLV route should be directed to the thread provided by ashill above:

http://www.flyertalk.com/forum/ameri...solidated.html

/Moderator

AAerSTL

QR should go awAAy and stAAy awAAy...they have enough issues on the home front; besides isn't Akbar's time better spent publicly shamming suppliers in a confrontational manner?

DA201

I heard the profitability thing was a load of garbage. Apparently, AA had some dispute with some employees or former employees in Israel from when they flew JFK-TLV (inherited from TWA, later cancelled for apparently the same reason). So it was cheaper and easier for AA to cancel the flight right after acquiring US instead of going through a potentially expensive legal battle in Israel.

Back to the topic of the thread... I think QR realized there was no chance of improving ties with AA and that their proposed investment only made their existing relationship worse. AA wants to keep their employees happy and all of the unions hate the ME3, so Parker's popularity among employees went up after he openly commented on their proposed investment and scaled back ties with EY and QR.

JonNYC

Nope.

tigerhunt2011

you mean one of the the loudest, unionized voices against OpenSkies?

anabolism

What's the difference between "not profitable enough" and "couldn't compete"? Seems like the same thing to me.

As for QR dropping their intent to purchase a stake in AA, do we know why they wanted to do so in the first place? Given the fight between the Middle East Three and U.S. carriers, the idea that QR wanted to invest somewhere that would improve their relationship with U.S. airlines and generate return seems reasonable. There seems to be a pattern with the Middle East Three of forming partnerships by investing in other countries' airlines.

leungy18

A 10% stake would've given QR a seat on the board. QR has a history of buying up little chunks of airlines here and there, and the only reason I think QR let it go this time is because of the current political situation there. QR might need more cash reserves if the diplomatic crisis escalates.

AA and QR's relationship is already pretty bad, but neither of them can afford to leave oneworld. You don't have to like someone to work with them.