Qatar Airways said it wouldn’t proceed with a planned investment 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 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 victory for American Chief Executive Officer Doug Parker, who called the proposed stake purchase “puzzling at best and concerning at worst.” American, Delta Air Lines and United Continental Holdings have fought a running battle against Qatar Air and two other Persian Gulf carriers, which US airline executives accuse of getting unfair advantages from US$50 billion in alleged government subsidies.
“We respect Qatar Airways’ decision not to proceed with its proposed investment in American Airlines,” said Matt Miller, a spokesman for the Fort Worth, Texas-based carrier. “This in no way changes the course for American.”
Full Content: Reuters
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