Qatar Airways has given up on its plan to buy shares of American Airlines.
The airline released a statement Wednesday saying it had reversed its decision on the investment: "Qatar Airways has taken the decision not to proceed with its proposed passive financial investment in American Airlines.
"Further review of the proposed financial investment, taking into account the latest public disclosure of American Airlines, has demonstrated that the investment no longer meets our objectives. Qatar Airways will continue to investigate alternative investment opportunities in the United States of America and elsewhere that do meet our objectives."
The news of the airline's decision to seek shares of American was given a chilly reception by investors.
Originally, Qatar had made an unsolicited bid to purchase $808 million of American. The purchase was to be made on the open market and, while legal, many believed it to be a strange move for both carriers.
"While this move may be legal, it is not only odd but certainly inappropriate," Allied Pilots Association spokesman Captain Dennis Tajer told CNBC. "We take this as financial aggression. It runs completely against the fiber of American Airlines and must be looked at as more than just a simple investment."
It also raised eyebrows because Qatar and American are on opposite sides in a battle over the Open Skies agreement.
[READMORE]READ MORE: Ready to Pay More for Your Airline Ticket?[/READMORE]
Qatar has been working to build itself up with other recent acquisitions in LATAM Airlines Group, Italy's Meridiana and as the largest shareholder in International Airlines Group (IAG), which owns Iberia and British Airways. It now owns just over 20 percent of the stock in the group.
While Qatar has decided against its decision about American Airlines, it's likely not the last we will hear of this story.
"Qatar Airways will continue to seek opportunities to invest in global aviation to support the airline's goal to offer the best possible travel experience for its customers."
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
