CEO questions Qatar move to invest in American
By Steve Creedy Thu Jun 22, 2017
American Airlines has responded bluntly to news that Qatar Airways plans to become a significant investor and has vowed to continue its long-running feud over government subsidies.
In a surprise move, Qatar has indicated it wants to take a stake of up to 10 per cent in the US carrier with an investment of up to 4.75 per cent.
“Qatar Airways sees a strong investment opportunity in American Airlines,’’ the Gulf carrier said in an emailed statement.
“Qatar Airways believes in American Airlines’ fundamentals and intends to build a passive position in the company with no involvement in management, operations or governance.
“Qatar Airways has long considered American Airlines to be a good oneworld Alliance partner and looks forward to continuing this relationship.’’
The Gulf carrier said it would not exceed an investment of 4.75 per cent without prior consent of the American Airlines board and would it would l make all necessary regulatory filings “at the appropriate time'".
In a letter to staff, American chief executive Doug Parker described the Qatar plan as puzzling at best and concerning at worst.
"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," Parker said.
US commentators suggested the move by Qatar is an attempt to muddy the waters in the battle by the US carriers against their Gulf counterparts.
But Parker said American would 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.’’
The claim of illegal subsidies has been the centrepiece of a long-running campaign by the big three American carriers against moves by Qatar, Emirates and Etihad to increase their presence in the US market.
The Gulf carriers have denied the claim and accused the Americans of being afraid of competition.
Qatar was one of the airlines affected by a US ban on large electronic devices in aircraft cabins and the small Gulf state currently faces economic sanctions by neighbouring Arab states amid allegations of links to terrorist groups.
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