Qatar Airways announced that they will drop the bid to acquire a stake in American Airlines Group Inc. (NASDAQ: AAL). The intended 10% investment no longer meets Qatar Airways’ objectives and will continue to invest opportunities elsewhere in the U.S.
In June, Qatar’s initial announcement on the investment made executives at American Airlines disagree with the plan because Qatar is one of 3 airlines in the Persian Gulf that American has been fighting for years, accusing them of receiving unfair government subsidies. As a result, the state owned carrier lost access to 18 Middle East destinations in fallout from the ongoing regional political crisis.
American Airlines also planned to cancel its code share agreements with Qatar. The U.S. airline as well as a couple of others including Delta Air Lines and United Airlines have pressed the U.S. government to curb U.S. flights by Qatar. American’s existing frequent flier partnerships will remain with Qatar Airways.