Qatar Eyes American Stake In Surprise Twist To Airline Feud

American Airlines quick to rebuffGulf airline's show of interest.

“We aren’t particularly excited about Qatar’s outreach”

- Michael Sasso, Deena Kamel Yousef And Richard Clough

Only weeks after President Donald Trump accused Qatar of funding terrorism, the nation’s flagship airline has made a surprise overture to acquire a major stake in American Airlines.

The move represents a startling turn in a running battle between US carriers and their Arabian Gulf rivals, which US airline executives say have unfair advantages because of deep government subsidies.

It also comes against the backdrop of renewed efforts by the Trump administration to mediate the simmering crisis between Qatar and some of the closest US allies in the region, notably Saudi Arabia. American reacted with be wilderment, if not hostility, to the company’s interest.

“Puzzling at best and concerning at worst,’’ Chief Executive Officer Doug Parker said. The airline’s pilots union went further, calling it an act of “financial aggression” while flight attendants said it was a threat to their jobs.

Qatar Airways Ltd. is interested in acquiring about 10 percent of American, the US company said in a filing. That would put the state-owned Mideast airline on par with Warren Buffett’s Berkshire Hathaway Inc. among shareholders of the world’s largest carrier.

It would also require approval by the board of American Airlines Group Inc. – a step that is by no means guaranteed given the US company’s vocal efforts to level the playing field in global aviation under so-called Open Skies agreements.

“This development strengthens our resolve to ensure the US government enforces its trade agreements regarding fair competition with Gulf carriers,” Parker said in a letter to employees, which was obtained by Bloomberg News. “While anyone can purchase our shares in the open market, we aren’t particularly excited about Qatar’s outreach.