Qatar Airways aims to make a "significant
investment" in American Airlines, according to an SEC filing in which American
Airlines said the bid was unsolicited.
Qatar Airways, meanwhile, has submitted a filing under the
Hart-Scott-Rodino Antitrust Improvements Act, as is required for a purchase of
more than $81 million in American's common stock. Qatar Airways' notice to
American Airlines indicated that it intends to buy at least $808 million in
common stock, while Qatar Airways CEO Akbar Al Baker told American Airlines CEO
Doug Parker it is interested in buying a 10 percent stake, according to the
filing.
Qatar's filing is subject to review by the U.S. Department
of Justice antitrust division. U.S. law limits foreign ownership in U.S.
carriers to 25 percent.
In the meantime, American Airlines' incorporation rules
require a written request for board approval for an acquisition of 4.75 percent
or more of its outstanding stock, which the carrier said it has not yet
received.
Qatar Airways said it "believes in American Airlines'
fundamentals and intends to build a passive position in the company with no
involvement in management, operations or governance. Qatar Airways has long
considered American Airlines to be a good Oneworld Alliance partner and looks
forward to continuing this relationship."
Despite the alliance relationship, American Airlines and
Qatar Airways have been on opposite sides of an ongoing dispute,
in which the Big Three U.S. carriers have accused Qatar Airways, Etihad Airways
and Emirates of violating Open Skies agreements by benefiting from state
subsidies. The Gulf carriers deny those allegations. In its filing, American Airlines
said Qatar Airways' request to buy in does not change American Airlines' position
on the issue.
"While anyone can purchase our shares in the open
market, we aren't particularly excited about Qatar's outreach and we find it
puzzling, given our extremely public stance on the illegal subsidies that
Qatar, Emirates and Etihad have all received over the years from their
governments," Parker said in a letter to employees on Thursday. "We
remain committed to that effort, and we will remain so even with this potential
investment."
The country of Qatar also is embroiled in a diplomatic
crisis with neighboring nations that include the United Arab Emirates and
Saudi Arabia. The dispute has forced Qatar Airways to suspend flights to those
nations and lose access to Saudi airspace and thus to reroute flights. The U.S.
State Department critiqued the countries issuing the embargo against Qatar even
as U.S. President Donald Trump has praised the embargo on Twitter.
Qatar
Airways already has significant
investments in several airlines globally. Last year, it bumped up its stake
in British Airways parent company International Airlines Group to 20 percent,
and it acquired a 10 percent stake in Latam. American has a joint business agreement
with IAG and is
seeking government approval for one with Latam.