Qatar Airlines are looking forward to buying American Airlines and that is apparently a “bad” thing. Some critics and analysts believe that this would create a distrust between the two sovereign nations.
Anyway, on the business side of things, Qatar Airlines—which is owned by the state—is trying to buy $808 million in stocks in order to buy 10% of the company’s shares.
The CEOs of both companies have been in talks albeit unwarranted; the company was not looking to sell any part of its shares but when money comes, the least you can do is listen to the other party.
Qatar Airways CEO Akbar Al Baker, is known for his “brash style”. His company also owns a small part of the parent of British Airways which is a close partner of American Airlines.
The whole American Airlines “thingy” took everyone by surprise. The Delta, American and United airlines are in disagreement with three of the biggest airlines that are running out of the Middle East.
As a collective, they are accusing Qatar, Etihad and Emirates airlines of collecting large and not so legal subsidies from their individual governments.
The American carriers are trying to block the three airlines from expanding service to the U.S.
Also, the Middle Eastern airlines have cut into some very lucrative routes for U.S. carriers overseas.
And right now, Qatar Airways is getting bruised by a dispute between its national government and neighboring countries led by Saudi Arabia, which accused Qatar of supporting Islamic extremists. Saudi Arabia, the United Arab Emirates, Egypt and Bahrain have barred Qatar Airways flights.
President Donald Trump has tweeted support for the blockade of Qatar, despite the presence of a massive and strategic U.S. military base within its borders. Yet this week, the State Department asked Saudi Arabia and other Arab countries to detail their complaints about the small Persian Gulf monarchy, urging a speedy end to the diplomatic crisis.