American Airlines cut ties with Etihad and Qatar Airways, ending codeshare agreements, as part of an ongoing dispute regarding state subsidies given to the major Gulf carriers.
The existing codeshare deals will end March 25, 2018. The cancelation of the agreements, which allows the airlines to sell tickets on one another’s flights as if it were its own, comes during the dispute between U.S. airlines and the Middle Eastern rivals over allegations of illegal subsidies.
“Given the extremely strong public stance that American has taken on the ME3 issue, we have reached the conclusion that the codesharing relationships between American and these carriers no longer make sense for us,” said an American Airlines spokesperson. “This decision has no material financial impact on American and is an extension of our stance against the illegal subsidies that these carriers receive from their governments. We are committed to doing everything we can to continue to support our team members and ensure that there is fair competition between American and the Gulf carriers.”
In response to the announcement, Akbar Al Baker, chief executive officer, Qatar Airways, said the move would not affect the Gulf carrier’s decision to purchase a 10 percent stake in American Airlines. An Etihad spokesperson called the decision anticompetitive and anti-consumer.
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