Qatar Airways Seeks 10 Percent Stake in American Airlines

Published June 28th, 2017 - 09:37 GMT
Qatar Airways. (File photo)
Qatar Airways. (File photo)

Qatar Airways announced its intention to buy a 10 percent stake in American Airlines, which was confirmed by the US carrier on Thursday.

Qatar Airways disclosed that it seeks to buy at least $808 million in shares.

"The proposed investment by Qatar Airways was not solicited by American Airlines and would in no way change the Company's Board composition, governance, management or strategic direction," American Airlines said in a securities filing. 

Earlier in June the UAE, Saudi Arabia, and Bahrain banned all "Qatari aviation companies and aircraft registered in the state of Qatar" from landing or transiting through their airspace.

Qatar Airways CEO Akbar al-Baker said the move by Saudi Arabia and its allies was an "illegal blockade".

Last week, the International Civil Aviation Organization (ICAO), a UN body which regulates international air travel, said it would seek a "consensus-based solution" that addressed "current regional concerns" over the closure of airspace by the Saudi-led bloc.

The Qatar stake in the US carrier "does not alter American Airlines' conviction on the need to enforce the Open Skies agreements and ensure fair competition with Gulf carriers, including Qatar Airways," American said in the filing.

"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 US aviation industry and that threaten American jobs," American said.

Shares of American shot up 5.2 percent in pre-market trading to $50.90.

 


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