Amer­i­can Air­lines Dodges Un­wel­come Em­brace as Qatar Air­ways Moves On

The Economic Times - - Around The World -

Doha: Qatar Air­ways dropped a plan to in­vest in Amer­i­can Air­lines Group fol­low­ing a chilly re­cep­tion from the US car­rier. Buy­ing a stake “no longer meets our ob­jec­tives,” Qatar Air said in an emailed state­ment on Wed­nes­day, al­lud­ing to the “lat­est public dis­clo­sure” by Amer­i­can with­out elab­o­rat­ing. The US car­rier re­ported fi­nan­cial re­sults July 28, cap­ping an earn­ings sea­son in which ris­ing con­cerns about air­lines’ pric­ing power dragged in­dus­try stocks to their worst month in a year. The de­ci­sion by Qatar Air marks a vic tor y for Amer­i­can Chief Ex­ec­u­tive Of­fi­cer Doug Parker, who called the pro­posed stake pur­chase “puz­zling at best and con­cern­ing at worst”. Amer­i­can, Delta Air Lines Inc and United Con­ti­nen­tal Hold­ings Inc have fought a run­ning bat­tle against Qatar Air and two other Per­sian Gulf car­ri­ers, which US air­line ex­ec­u­tives ac­cuse of get­ting un­fair ad­van­tages from $50 bil­lion in al­leged gov­ern­ment sub­si­dies. “Ei­ther they saw some­thing they didn’t like — and I don’t know what that would have been — or this was just kind of a tit-for-tat” ex­ten­sion of a ver­bal bat­tle that be­gan when Qatar Air’s plan was made public, said avi­a­tion con­sul­tant Bob Mann. “Sug­gest­ing there was some­thing there that other peo­ple ought to fig­ure out is a risk takes one more shot at Amer­i­can.” “We re­spect Qatar Air­ways’ de­ci­sion not to pro­ceed with its pro­posed in­vest­ment in Amer­i­can Airli nes,” said Matt Mil ler, a spokesman for the Fort Worth, Texas-based car­rier. Qatar Air had been in­ter­ested i n ac­qui ri ng about 10% of Amer­i­can, which would have put the state-owned com­pany on par with War­ren Buf­fett’s Berk­shire Hath­away among share­hold­ers of the world’s largest car­rier. Any pur­chase of more than 4.75% would have re­quired ap­proval by the US air­line’s board.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.