Qatar's national carrier said it sees a “strong investment opportunity” in its ‘oneworld’ alliance partner American Airlines and will make an initial investment of up to 4.75% stake in the Fort Worth, Texas based airline.
Qatar Airways has said it sees a “strong investment opportunity” in its ‘oneworld’ alliance partner American Airlines and will make an initial investment of up to 4.75% stake in the Fort Worth, Texas based airline.
Qatar’s national carrier yesterday said it “believes in American Airlines’ fundamentals and intends to build a passive position in the company with no involvement in management, operations or governance.”
Qatar Airways said “it has long considered American Airlines to be a good oneworld alliance partner and looks forward to continuing this relationship.
“Qatar Airways plans to make an initial investment of up to 4.75%. Qatar Airways will not exceed 4.75% without prior consent of the American Airlines board. Qatar Airways will make all necessary regulatory filings at the appropriate time,” an airline statement said.
One of the region’s largest airlines, Qatar Airways also owns 20% of British Airways-owner International Airlines Group (IAG) and 10% of South America's LATAM.
Qatar Airways, American Airlines, IAG's British Airways, Iberia and LATAM, are all members of the oneworld airline alliance.
The national carrier in collaboration with the Qatar Investment Authority is also planning to submit application to authorities in India to start a short-haul airline there with a fleet of 100 narrow-body planes.
Shares of American Airlines rose 5.5% to $51.08 in premarket trading, a Reuters dispatch showed following the report.
Qatar Airways indicated that it would buy the stake on the open market, American Airlines said in a regulatory filing.
Bloomberg quoted American and said Qatar Airways intends to invest at least $808mn in the Fort Worth-based airline.
American said its certificate of incorporation prohibits anyone from acquiring 4.75% or more of the company’s outstanding stock without advance approval from the board following a written request. Also, foreign ownership laws in the US also limit a foreign voting interest to 24.9%.
Qatar Airways and British Airways have a revenue sharing partnership between their respective hubs in Doha and London, and Qatar Airways plans to launch flights to LATAM's base in Santiago, Chile.
One of the world’s fastest-growing airlines, Qatar Airways was named as ‘Airline of the Year’ by the prestigious 2017 Skytrax World Airline Awards, held at the Paris Air Show on Tuesday, the fourth time that the national carrier has been given this global recognition as the world’s best airline.
In addition to being voted ‘Best Airline’ by travellers from around the world, Qatar’s national carrier also won a raft of other major awards at the ceremony, including ‘Best Airline in the Middle East’, ‘World’s Best Business Class’ and ‘World’s Best First Class Airline’ lounge.
Qatar Airways' home and hub, Hamad International Airport, was this year also rated five-star by Skytrax, one of only five in the world to be given this recognition.
The airline operates a modern fleet of 200 aircraft to a network of key business and leisure destinations across Europe, the Middle East, Africa, Asia Pacific, North America and South America.