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American Airlines addresses Qatar Airways' decision to drop investment plans

03 August, 2017, 00:57 | Author: Paula Vaughn
  • Qatar Airways has signed a codeshare agreement with LATAM Airlines Brazil. The agreement provides new codeshares on LATAM’s routes between São Paulo’s Guarulhos Airport and 25 domestic cities across Brazil including Rio de Janeiro, Salvador (SS

The two airlines are on opposite sides of a nasty fight that has big US carriers complaining that they are unfairly undercut on fares because Qatar and two other fast-growing Middle East airlines get illegal subsidies from their governments.

The state-owned flag carrier of Qatar has previously suggested it was looking to acquire a 10% stake in the airline. On Wednesday, Aug. 2, 2017, Qatar Airways said it is dropping an attempt to buy a big stake in American Airlin. But on Wednesday, Qatar said it changed its mind after a review of the deal's finances and American's reaction.

Back in June when Qatar sent its intended an notice that it was interested, American's CEO Doug Parker told employees that the company wasn't "particularly excited" about the outreach, noting that "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". Parker made clear that any investment by Qatar Airways would not persuade him to back off from the campaign to push the U.S. government to take action against alleged "illegal subsidies that Qatar, Emirates and Etihad have all received over the years from their governments".

Additionally, Qatar Airways Cargo has also expanded its footprint in South America, with commencement of freighter services to São Paulo, Brazil; Buenos Aires, Argentina; and Quito, Ecuador.

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The Middle Eastern carrier had proposed to take a ten per cent stake in the oneworld airline.

Further, American said it would end codeshare agreements with the Qatar and Etihad due to the ongoing dispute. "Qatar Airways will continue to seek opportunities to invest in global aviation".

American Airlines had urged Qatar Airways to reconsider the move.

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