American Airlines is severing code-share agreements with Qatar Airways and Etihad Airways amid a trade dispute with the two Gulf carriers.
The action came as it emerged that Qatar Airways had revised its antitrust filing with regulators seeking clearance to buy up to a 10% stake in the US carrier, a move American is resisting.
American’s decision to cancel code-share agreements intensifies an acrimonious dispute between US carriers and Middle East rivals.
The decision to cancel code-sharing with the two carriers would not have a material financial impact on American, the carrier said, and “is an extension of our stance against the illegal subsidies that these carriers receive from their governments”.
Qatar Airways’ chief executive Akbar al-Baker responded by saying it still wants to buy a slice of the US carrier.
“Our stock purchase request and filing is going ahead as normal. We had to clarify certain questions of the regulator, which we compiled with,” he told reporters in Doha.
American and other US carriers claim that Qatar Airways, Etihad and Emirates have an unfair competitive edge from state subsidies that allow them to offer lower fares and more amenities to long-haul, international travellers.
They are pressing Washington to limit the Middle East airlines’ access to US airports.
The Middle East carriers have rejected the complaints about subsidies.