Qatar Airlines Drops Plans To Buy Into American Airlines
Several news agencies are reporting that Qatar Airways has dropped plans to buy into American Airlines. In June, the state-owned airlines submitted a filing under the Hart-Scott-Rodino Act, which is subject to review by the Justice Department's Antitrust Division.
Earlier in June, Saudi Arabia, the United Arab Emirates, Egypt and Bahrain cut ties with Qatar and blocked direct flights with the country. Qatar Airways, one of the region's largest, also stopped its flights to the four Arab countries in response to the UAE's Etihad, Emirates, FlyDubai, EgyptAir and Bahrain's Gulf Air suspending flights to Qatar.
The company announced on Wednesday that they were changing their minds after AA reported last week a 15.5 percent drop in second-quarter profit on higher fuel and labor costs.
When the plans were announced earlier this summer, American Airlines CAEO Doug Parker told employees in a letter that he was not "particularly excited" about the purchase but could not control who bought their stock.