Owned Qatar Airways seeks 10 pct stake in American

U.S. carrier files for required permit to allow Qatar's state-owned carrier to buy 10-percent stake in American Airlines.

The outreach drew a frosty response from the USA carrier, which said the intended purchase "was not solicited by American Airlines and would in no way change the Company's Board composition, governance, management or strategic direction".

American and other top US carriers have accused Gulf rivals like Qatar, Emirates and Etihad of receiving unfair government assistance that has allowed them to expand aggressively and have pressed the USA government to take action.

It plans to make an initial investment of up to 4.75 percent. American, the world's biggest airline, said that Qatar CEO Akbar Al Baker told Parker that he wanted to acquire about 10 percent of American's stock in all, which would cost $2.4 billion at American's midday stock price.

Qatar Airways said it "believes in American Airlines' fundamentals and intends to build a passive position in the company with no involvement in management, operations or governance".


"The intentions of Qatar Airways are clear", said APFA President Bob Ross in a prepared statement.

"The Trump administration seems to have sided with the Saudis on Qatar", Becker said.

The national carrier in collaboration with the Qatar Investment Authority is also planning to submit application to authorities in India to start a short-haul airline there with a fleet of 100 narrow-body planes.

Despite the tension, Qatar Airways and American have been partners in the OneWorld alliance since 2013.

Two years ago the Qatari company took a 10% stake in another sizeable airline, International Airlines Group, the parent company of British Airways and Iberia.


Managing director at aviation consultancy firm Aerotask, Rob Watts, said Qatar's investment in American could serve to help block increased coordination between American and other Gulf carriers.

Shares of American Airlines jumped 1.7 percent to $49.24 in mid-morning trading.

President Donald Trump has accused Qatar, home to a massive and strategic US military base, of funding terrorism. That would make the airline one of American's largest shareholders, a group that includes Warren Buffett.

In a letter to staff, American chief executive Doug Parker described the Qatar plan as puzzling at best and concerning at worst.

"American Airlines continues to believe that the president and his administration will stand up to foreign governments to end massive carrier subsidies that threaten the USA aviation industry and that threaten American jobs", said the filing.


USA airlines and their labor unions were unable to get the Obama administration to accept their accusations that the Middle East airlines receive illegal subsidies. And in December it announced a 10 percent stake in Chile's Latam Airlines Group for $608 million.


Popular
  • GM Griffin, Cavs part ways after title, 3 straight Finals

    GM Griffin, Cavs part ways after title, 3 straight Finals

    In the release, Griffin was recognized by Gilbert for his role in helping the Cavs win their first championship in 2015-16. Gilbert has owned the Cavs since 2005 and has never kept a general manager beyond his first contract with the team.
    A Compound Found In Broccoli Could Reduce Blood Sugar Levels

    A Compound Found In Broccoli Could Reduce Blood Sugar Levels

    You may be able to keep your blood glucose at a safe and healthy level without the need for other types of treatment. Most participants continued to take metformin, a drug commonly used to lower blood sugar levels in diabetics.

    Turkey's Erdogan to discuss Qatar dispute with Trump, minister says

    Turkish Foreign Minister Mevlut Cavusoglu said Erdogan would discuss the Gulf rift in a telephone call with U.S. Qatar has denied the accusation by Saudi Arabia and the United Arab Emirates that it supports extremist groups.
  • Uber to allow tipping for drivers, reversing long-standing policy

    Uber to allow tipping for drivers, reversing long-standing policy

    It's also allowing more drivers to designate the routes that they want to travel to keep them closer to a preferred destination. A rider boycott in late January knocked Uber ridership down to 52.7 percent, while Lyft grew to a 12.8 percent share.
    Apple iPad Pro review: Is this a laptop replacement?

    Apple iPad Pro review: Is this a laptop replacement?

    According to a report published by Game Debate , Apple's iMac Pro will be the first to debut the AMD Radeon Vega graphics card. The difference in real estate is indiscernible, however, so the 10.5-inch iPad Pro still feels like the flawless size for me.

    We Love Manchester Emergency Fund passes £10 million mark

    She also organized and headlined the One Love Manchester benefit concerton Sunday (June 4) in their honour. The song will reportedly raise money for the We Love Manchester Emergency Fund and the British Red Cross .
  • Sabres acquire D Nathan Beaulieu in trade with Canadiens

    Sabres acquire D Nathan Beaulieu in trade with Canadiens

    Beaulieu makes sense for the Sabres, though, as he's a smart two-way player who can work on the man advantage. Teams were allowed to either protect 7 forwards , 3 defensemen and 1 goalie , or 8 skaters and 1 goalie .

    Red Hat, Inc. (NYSE:RHT) Valuation According To Analysts

    The stock of Eaton Corporation, PLC Ordinary Shares (NYSE:ETN) has "Overweight" rating given on Friday, December 9 by JP Morgan. Palo Capital Inc reported 0.31% in LyondellBasell Industries NV (NYSE:LYB). (NASDAQ:AAPL) for 1.10 million shares. (NYSE:TYG).
    Apple unveils 'HomePod' speaker, first new product in years

    Apple unveils 'HomePod' speaker, first new product in years

    This display will be powered by AMD Vega graphics cards that will be able to provide up to 22 Teraflops of computing performance. Featuring next-generation Intel Xeon processors up to 18 cores, iMac Pro is created to handle the most demanding pro workflows.
  • Portugal and Mexico draw 2-2 in Confederations Cup

    When Ronaldo's volley thumped the crossbar, Nani pounced on the rebound, but the video ref spotted that four players were offside. In the final 10 minutes, Cedric gave the European champions a late 2-1 lead after his shot deflected into the back of the net.
    Salem congressman Morgan Griffith was on Alexandria gunman's list

    Salem congressman Morgan Griffith was on Alexandria gunman's list

    Hodgkinson's posts did not include "threats or references to Members of Congress or the Congressional baseball game". At this point in the investigation, the attack appears to be " more spontaneous" than planned, Slater said .
    McGregor On Aug. 26? Date Reserved By Mayweather Promotions

    McGregor On Aug. 26? Date Reserved By Mayweather Promotions

    Conor McGregor celebrates after defeating Eddie Alvarez in their lightweight title bout during UFC 205 at Madison Square Garden. Due to McGregor's inexperience with boxing, however, many fans and reporters are expecting a disappointing fight.

CONNECT