American Airlines announced the termination of the codeshare agreement with Qatar Airways and Etihad Airways due to illegal subsidizing claims. The US carrier claims it no longer makes sense to sell Qatar Airways and Etihad’s tickets on its website and share revenue, but this decision would not have financial consequences.
According to the airline, the Gulf partners were informed about the termination of code-share agreement – which is going to come in effect in 2018 – back in June – before the Qatar’s CEO made “ageist” remarks about American flight attendants.
American Airlines, along with other US carriers Delta Air Lines and United, are in dispute with Gulf carriers over the alleged violation of the Open Skies agreement. US carriers claim that the Middle Eastern airlines are receiving illegal subsidies from their respective governments that help sell tickets at lower prices thus creating an unfair competitive edge.
Following the increasing pressure from the three biggest US airlines, the US government is considering to look into the bilateral Open Skies agreement with the United Arab Emirates and Qatar, three US government administration officials confirmed to POLITICO.
Despite the ongoing dispute and open antagonism from American Airlines, Qatar Airways are not renouncing its plans to acquire up to a 10% stake in this US carrier. The gulf airline has revised the antitrust filling with the US regulators, according to Economic Times.
Source – AeroTime
