Tuesday 25 July 2017
 
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NEW TWIST TO SUBSIDY ROW

American Airlines to end codeshare with Etihad, Qatar Airways

DALLAS, Texas, 12 days ago

American Airlines has announced plans to end its code-sharing agreements with Qatar Airways and Etihad Airways, reports said.

American accuses the Gulf airlines of receiving illegal subsidies from their governments. However, these claims are denied by the airlines.

American said it no longer makes sense to have so-called code-sharing agreements with Qatar and Etihad because of the dispute, said an ANC News report.

Breaking up the partnerships is the latest twist in a fight between American, Delta and United and fast-growing state-owned Middle Eastern airlines.

Meanwhile, the CEO of Qatar Airways said his airline plans to buy 10 percent of American Airlines Group.

American said in a regulatory filing that Qatar has filed a new notice of its intent to buy American shares. American says it didn't solicit the investment.

Abu Dhabi-based Etihad Airways has slammed American Airlines' decision to end the codeshare as "anti-competitive and anti-consumer", said a Khaleej Times report.

The American-Etihad codeshare, which started in 2009, would end on March 25, 2018, an Etihad Airways spokesman confirmed in a statement e-mailed to Khaleej Times.

"We view the decision by American Airlines as being anti-competitive and anti-consumer. This action will reduce choices for consumers and may result in higher fares for travellers to and from the United States," the statement read.




Tags: Qatar | Etihad | American |

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