CEO Questions Qatar Move To Invest In American

Qatar Airways looks to acquire 10 percent stake of American Airlines

American Airlines has received an unsolicited offer from Qatar Airways to purchase as much as 10 percent of the Fort Worth-based carrier's stock, according to a Thursday regulatory filing.

Qatar Airways is looking to acquire a 10% stake in American Airlines Group Inc (NASDAQ:AAL). Recently, seven neighboring countries, including Saudi Arabia and the United Arab Emirates, cut diplomatic ties with the Gulf State of Qatar, which effectively banned Qatar Airways flights and Qatari-registered aircraft from entering their airspace.

The Doha-based carrier intends to invest at least US$808 million in American, the United States carrier said Thursday in a regulatory filing. But the company's board will have to approve any stake larger than 4.75%, and foreign voting interest is capped at 24.9%.

Qatar Airways filed under the Hart-Scott-Rodino Act, as required for its projected investment of at least $808 million, American Airlines said.

Qatar was one of the airlines affected by a USA ban on large electronic devices in aircraft cabins and the small Gulf state now faces economic sanctions by neighbouring Arab states amid allegations of links to terrorist groups. The Stock is active as 6.29M shares changed hands versus its average volume of 5.53M shares.

Qatar's government denies the allegations.

Government-owned Qatar Airways has been embroiled in its own troubles, such as the U.S. electronics ban, and a diplomatic crisis with its neighbors that allege Qatar supports terrorism, which the country denies.

Texas-based American Airlines said in a stock market filing that it believes the U.S. government will continue to defend against "massive carrier subsidies that threaten the United States aviation industry and that threaten American jobs".

Qatar Airways has revealed it plans to take a 4.75 per cent stake in fellow oneworld carrier American Airlines.

President Donald Trump has tweeted criticism of Qatar, despite the presence of a massive and strategic USA military base within its borders. CEO Doug Parker, along with the carrier's pilots and flight attendants, expressed a lack of enthusiasm for Qatar Airways' bid to buy stock in the airline.

Akbar al-Baker, the airline's outspoken chief executive, used the occasion to blast Qatar's regional rivals.

In addition to being voted "Best Airline" by travellers from around the world, Qatar's national carrier also won a raft of other major awards at the ceremony, including "Best Airline in the Middle East", "World's Best Business Class" and "World's Best First Class Airline" lounge. Click to get this free reportAmerican Airlines Group, Inc.

Last year, Qatar set up a revenue-sharing partnership with British Airways parent International Airlines Group, deepening its partnership with that company.

In July Qatar Airways announced a deal to buy a 49 percent stake in Meridiana, Italy's second-biggest carrier.

Relacionada:

Comentarios


Otras noticias