Qatar Airways is looking to acquire a 10% stake in American Airlines Group Inc (NASDAQ:AAL).
Qatar Airways made its intentions clear in a filing with the U.S. Securities and Exchange Commission. The company has also been open with American Airlines Group Inc about acquiring the stake. It plans to do so by purchasing AAL stock on the open market.
While Qatar Airways wants that 10% stake in American Airlines Group Inc, there is no guarantee it will get it. The acquisition of the shares would first need approval from AAL’s board. The deal will also require approval from Department of Justice. The move comes as the state-owned airline looks to expand its presence in the United States.
American Airlines Group Inc, and other airlines in the United States, haven’t been happy with Qatar Airways and other Persian Gulf airlines recently. They claim that the airlines are using subsidies from their governments to operate. This would breach the Open Skies agreement and AAL is seeking the Trump administration’s aide in stopping it, reports The New York Times.
If Qatar Airways is able to take a 10% stake in American Airlines Group Inc, it would make it one of the largest investors in the company. The move to acquire a stake in a rival from another country matches previous efforts made by the airline. It has obtained stakes in International Consolidated Airlines Group, Meridiana and LATAM Airlines Group SA (ADR) (NYSE:LTM) over the last few years.
AAL stock was up 1% as of Thursday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.