Qatar Airways bids to buy into American Airlines

Discussion in 'American Airlines' started by 1AA, Jun 22, 2017.

  1. 1AA

    1AA Veteran

    Joined:
    Aug 20, 2002
    Messages:
    5,592
    Likes Received:
    4,136
  2. WeAAsles

    WeAAsles Veteran

    Joined:
    Oct 20, 2007
    Messages:
    21,625
    Likes Received:
    5,278
  3. FrugalFlyerv2.0

    FrugalFlyerv2.0 Veteran

    Joined:
    Oct 29, 2003
    Messages:
    2,930
    Likes Received:
    3,414
    This makes natural sense for QR and the gov of Qatar.
    They already own ~15% of IAG and a portion of LHR.
    So buying a chunk of alliance partner AAL is only the next logical and politically savvy step.
     
  4. whatkindoffreshhell

    Joined:
    Aug 20, 2002
    Messages:
    1,423
    Likes Received:
    90
    Wasn't Parker just whining the other day about AA's stock price?

    Anyway, QR's CEO Al Baker (just love that name) is clever and enjoys very deep pockets.

    So what kind of equipment ya got for that DFW-DOH flight and how many senior flight attendants will bid it?

    DOH ain't PIT that's for sure.
     
  5. Jester

    Jester Veteran

    Joined:
    Sep 12, 2007
    Messages:
    1,475
    Likes Received:
    475
    B787 has the range on the lower side of a MTOW of approximately 9,700 statute miles vs. DFW-DOH great circle map distance of nearly 9,000 statute miles. Either way don't why any American has an interest in visiting a Middle East country, same goes for Pyongyang.
     
  6. dfw gen

    dfw gen Veteran

    Joined:
    Dec 1, 2011
    Messages:
    3,439
    Likes Received:
    2,542
    Will we get a new management team?
     
    • Winner Winner x 3
    • Agree Agree x 1
  7. 28L_or_10R?

    28L_or_10R? Veteran

    Joined:
    Apr 11, 2008
    Messages:
    619
    Likes Received:
    216
    The current management will be replaced by Hamas leadership in Gaza.
     
    • Like Like x 1
    • Agree Agree x 1
  8. whatkindoffreshhell

    Joined:
    Aug 20, 2002
    Messages:
    1,423
    Likes Received:
    90
    So Doug Parker is "not happy" and finds this move "puzzling and strange"

    Where is Bob Crandall when you need him?

    Extra credit question: how would Bob Crandall respond to this move? Or perhaps QR wouldn't even dared try it in the first place if Bob was still around??
     
  9. WeAAsles

    WeAAsles Veteran

    Joined:
    Oct 20, 2007
    Messages:
    21,625
    Likes Received:
    5,278
    • Agree Agree x 1
  10. Vortilon

    Vortilon Veteran

    Joined:
    Jun 22, 2004
    Messages:
    2,048
    Likes Received:
    2,123

    Yeah, I can see AA becoming sharia compliant as well. Lol
     
    • Agree Agree x 1
  11. jimntx

    jimntx Veteran

    Joined:
    Jun 28, 2003
    Messages:
    10,853
    Likes Received:
    3,266
  12. OldGuy@AA

    OldGuy@AA Veteran

    Joined:
    Apr 14, 2011
    Messages:
    1,697
    Likes Received:
    2,282
    I actually could see them doing that. Sad to say.
     
  13. MetalMover

    MetalMover Veteran

    Joined:
    Sep 16, 2013
    Messages:
    3,549
    Likes Received:
    2,448
    We already have a form of strict law...It's called the ASSOCIATION..You know, you don't have a say in anything and don't get to vote on anything...
     
    • Winner Winner x 2
    • Like Like x 1
    • Agree Agree x 1
  14. AANOTOK

    AANOTOK Veteran

    Joined:
    Oct 10, 2009
    Messages:
    4,620
    Likes Received:
    2,394
    Sorry for the long article, I don't have a subscription to the Dallas Biz Journal.

    Qatar Airways to start amassing American Airlines shares 'soon,' CEO says


    Qatar Airways will move ahead with its plans to take a big stake in American Airlines despite protests from the Fort Worth-based company’s management and pilots, the state-owned carrier’s chief executive told reporters on Thursday in Ireland.

    Qatar notified American Airlines (Nasdaq: AAL) last month that it wants to buy up to 10 percent of its shares. A purchase of more than 4.75 percent requires approval of American's board.

    CEO Akbar al-Baker, who was in Dublin launching a new Qatar Airways route, said the carrier will begin buying American’s shares on the open market “soon.”Qatar does not intend to buy more than 10 percent of American, al Baker said.

    American’s stock jumped 2.5 percent to $52.55 in early afternoon trading.

    If Qatar Airways succeeds in amassing 10 percent of the world’s largest airline's stock, it will be one of the four biggest owners of American and essentially match the recent stake taken by investor extraordinaire Warren Buffett’s Berkshire Hathaway Inc.

    The unsolicited move to buy heavily into American would make Qatar a major owner at a time when American and other U.S. carriers are fighting expansion by Qatar and two other Middle Eastern carriers. The U.S. airlines claim the Middle Eastern carriers receive state subsidies that violate trade agreements. The Middle Eastern carriers deny that.

    American Airlines Chairman and CEO Doug Parker last month called the proposed share buy-up by Qatar “puzzling,” and added in a memo to employees, “we aren’t particularly excited about Qatar’s outreach.”

    The United States is an important market for Qatar Airways, accounting for 16 percent of its total traffic, Corrine Png, founder and CEO of research firm Crucial Perspective, told the Dallas Business Journal.

    With an ambitious planned capacity expansion of over 20 percent this year and next, Qatar Airways needs to increase its international traffic feed and broaden its network reach, especially after the recent Saudi-led blockade, Png said. Partnering with a U.S. carrier would help facilitate this, she said.

    On June 5, Saudi Arabia, the United Arab Emirates, Bahrain and Egypt announced they were severing relations with Qatar, accusing it of supporting terrorism. Qatar has repeatedly denied the allegations.

    Al-Baker said Thursday that American's CEO Doug Parker told him last month that he opposes Qatar's planned investment and that he would not recommend that the board approve the purchase of a stake worth more than 4.75 percent, Reuters reported from Dublin.

    "He categorically told us that he was not interested, that he would not suggest to his board to allow us. However, I told him we can still take 4.75 percent and we will do that," al Baker said.

    "Maybe once we have taken that 4.75 and they see the value that Qatar Airways brings to the table for them that they will reconsider," he said.

    He said he does not want to soften American Airlines management’s lobbying to curb U.S. flights by Qatar Airways and rival Gulf carriers Emirates and Etihad Airways, according to Reuters. The U.S. carriers contend that the Gulf carriers have received billions of dollars in unfair state subsidies.

    GET MORE OF THE
    LATEST BUSINESS NEWS
    FROM DALLAS BUSINESS JOURNAL
     

Share This Page