Qatar Airways eyes stake in American Airlines

U.S. carriers have criticized Persian Gulf competitors for having unfair advantage

Qatar Airways has expressed interest in buying up to 10 per cent of American Airlines, an unsolicited approach that comes amid criticism from U.S. carriers that Persian Gulf competitors have an unfair advantage.

The state-owned Qatar Airways said it intended to purchase at least $808 million (U.S.) of the American carrier’s stock on the open market, according to a Securities and Exchange Commission filing. Qatar Airways CEO Akbar al-Baker approached American Airlines chief Doug Parker about the possible purchase.

Shares of American Airlines were up 5 per cent in pre-market trading on Thursday.

Any such purchase is subject to the approval of the American Airlines board, as well as an antitrust review of the Department of Justice.

The move could set up a standoff at a time when American rivals have been pushing back against the stateowned Gulf carriers Qatar Airways, Etihad Airways and Emirates.

Several U.S. carriers, including American Airlines, have complained to the Trump administration about the subsidies that the Gulf carriers receive from government backers. The money, the U.S. carriers wrote in a letter to Secretary of State Rex Tillerson, has allowed the companies “to operate without concern for turning a profit” and “therefore focus entirely on stripping market share and driving out competition.”

The U.S. companies are playing to President Donald Trump’s “America first” agenda, saying the subsidies hurt the country’s job market. “For every long-haul route lost or foregone as a result of subsidized Gulf carrier competition, more than1,500 American jobs are lost,” the letter in February said.