American Airlines cancels codeshare partnerships with Qatar Airways and Etihad

American Airlines cancels codeshare partnerships with Qatar Airways and Etihad

American Airlines has announced it will terminate codeshare partnerships with Qatar Airways and Etihad Airways.

The move is seen as part of a dispute over state subsidies American claims these carriers receive from their governments.

Both the Middle Eastern carriers deny such claims.

American and other United States-based carrier, notably Delta Air Lines and United Airlines, argue government subsidies allow Qatar Airways, Etihad and Emirates to offer lower fares and more amenities to long-haul, international travellers.

American said cancelling code-sharing agreements with Qatar Airways and Etihad would not have a material financial impact.

The decision comes as Qatar Airways confirmed it would go ahead with plans to buy a stake in American Airlines.

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The Middle Eastern carrier – which holds ten per cent of LATAM and a 20 per cent stake in British Airways-owner IAG - is seeking a ten per cent stake in its rival.

“Our stock purchase request and filing is going ahead as normal,” Qatar Airways chief executive Akbar al-Baker said.

Qatar Airways sent a revised antitrust filing to US regulators earlier seeking clearance to buy up to a ten per cent stake in American.

Qatar Airways, American Airlines, British Airways, Iberia and LATAM are all members of the one world airline alliance.