Doha, Qatar-based Qatar Airways announced Wednesday they will not invest in American Airlines as they had previously intended. The U.S. carrier had vigorously opposed the investment.
“Further review of the proposed financial investment, taking into account the latest public disclosure of American Airlines, has demonstrated that the investment no longer meets our objectives,” Qatar Airways said in a statement emailed to various news outlets Wednesday.
American Airlines has not yet commented publicly on the recent announcement.
The Gulf carrier had expressed interest in purchasing as much as 10 percent of the Fort Worth, Texas-based airline, currently the largest in the world. But other reports suggested they were willing to lessen the percentage to avoid needing Board of Directors approval.
The proposed investment came as a surprise to many, especially as the Middle East’s biggest carriers – Emirates, Etihad, and Qatar – are locked in a heated battle with the legacy carriers in the U.S. over the Gulf carriers’ use of government subsidies.
The carrier, however, said they would continue looking for ways to expand their U.S. investment portfolio.
“Qatar Airways will continue to investigate alternative investment opportunities in the United States of America and elsewhere that do meet our objectives.”
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