Qatar snubs American Airlines, makes it official with new airline

We all remember how awkward things got when Qatar Airways – despite an intense rivalry and bitter dispute – tried to buy a stake in American Airlines? Or how AA’s CEO said they weren’t “particularly excited” about the outreach?

Well, Qatar Airways has put that all behind it, farewelled hopes of an AA partnership, and announced it’s official with Cathay Pacific.

In a statement, Qatar Airways said they are “pleased to announce that it has entered into an agreement to purchase an amount of 378,188,000 shares of Cathay Pacific Airways Limited (“Cathay Pacific”), being approximately 9.61 per cent of the total issued share capital.

“Completion of the transaction is expected to take place later today in Hong Kong.”

Qatar Airways Group Chief Executive, Akbar Al Baker said, “Qatar Airways is very pleased to complete its financial investment in Cathay Pacific.

“Cathay Pacific is a fellow oneworld member and is one of the strongest airlines in the world, respected throughout the industry and with massive potential for the future.”

“This investment further supports Qatar Airways investment strategy which already includes 20 per cent investment in International Airlines Group, 10 per cent investment in LATAM Airlines Group and 49 per centinvestment in Meridiana.”

Air China Limited and Swire Pacific Limited together continue to hold 74.99 per cent shares of Cathay Pacific.

Commenting on the share acquisition, Cathay Pacific Chief Executive Officer, Rupert Hogg said, “Qatar Airways is one of the world’s premier airlines.

“We already work together closely as fellow members of the oneworld alliance and we look forward to a continued constructive relationship.”

Following Qatar’s push to purchase stakes in American Airlines, and the ongoing criticism of the three main Gulf carriers – Emirates, Etihad and Qatar – by the Big Three US carriers – Delta, American and United – Qatar was intent on continuing the airline’s expansion.

“QATAR AIRWAYS WILL CONTINUE TO INVESTIGATE ALTERNATIVE INVESTMENT OPPORTUNITIES IN THE UNITED STATES OF AMERICA AND ELSEWHERE THAT DO MEET OUR OBJECTIVES.

“Qatar Airways will continue to seek opportunities to invest in global aviation to support the airline’s goal to offer the best possible travel experience for its customers.”

American Airlines, along with Delta and United, have long accused Qatar and fellow Gulf carriers, Etihad and Emirates, of receiving unfair government subsidies, accusations the Gulf carriers firmly deny.

But the distrust led American Airlines to recently cut its codeshare ties with Qatar and Etihad, as Qatar continued to pursue bigger horizons, announcing 24 new destinations in 2017/18.

Qatar also suffered a big hit earlier in the year when its neighbouring countries effectively cut Qatar off from surrounding airspace, forcing a mass shutdown of routes, and mountains of issues with the airline re-routing its long-haul and short-haul connections with the rest of the world.

Qatar Airways CEO Akbar Al Baker called the move illegal, but promised the airline would be resilient and continue to serve its customers, as one of the highest rated airlines in the world.

“For us, the biggest priority is for us to have a gateway in and out of my country, which we are very successfully handling, and at the same time, it is our passengers for which it is our responsibility,” he said.