Saturday, August 5, 2017

Qatar Air drops plan for American stake

Qatar Airways said it is dropping an attempt to buy a big stake in American Airlines, an audacious bid that had received a chilly reception from American.

Qatar Airways said the investment no longer meets its objectives.

American Airlines said it respected Qatar’s decision and added that the turnabout would not make any difference in American’s plans.

Qatar said in June that it planned to buy an initial stake of up to 4.75 percent of American’s stock, but Fort Worth-based American said Qatar’s goal was to get a 10 percent stake.

It was an odd move. The two airlines are on opposite sides of a nasty fight that has big U.S. carriers complaining that they are unfairly undercut on fares because Qatar and two other fast-growing Middle East airlines get illegal subsidies from their governments.

Qatar Airlines said this week that it changed its mind after a review of the deal’s finances and American’s reaction.



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Now the grandmothers will give back 50/50 to help its ailing carrier.

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