Economy

Qatar Airways and LATAM Airlines Brazil Sign Codeshare Agreement

Qatar Airways and LATAM Airlines Brazil Sign Codeshare Agreement

The Fort Worth, Texas-based company didn't immediately comment on Qatar Air's decision.

In response, Qatar Airways CEO Akbar al-Baker expressed disappointment over the USA airline's decision, and rejected the accusation of "illegal subsidies".

It was an odd move.

American Airlines (AAL) on Wednesday acknowledged Qatar Airways' announcement that it would drop a bid to purchase a minority stake in the USA carrier, weeks after company CEO Doug Parker called the proposed investment "puzzling".

Additionally, Qatar Airways Cargo has also expanded its footprint in South America, with commencement of freighter services to São Paulo, Brazil; Buenos Aires, Argentina; and Quito, Ecuador. But on Wednesday, Qatar said it changed its mind after a review of the deal's finances and American's reaction. The Middle Eastern airlines deny getting illegal subsidies.

American CEO Doug Parker had given a chilly public response to the overture, calling it puzzling and not particularly exciting.

On June 5, Saudi Arabia and its allies including Egypt and the United Arab Emirates cut diplomatic and trade ties with Qatar, accusing Doha of backing extremist groups and being too close to riyadh's arch-rival Iran. Parker made clear that any investment by Qatar Airways would not persuade him to back off from the campaign to push the USA government to take action against alleged "illegal subsidies that Qatar, Emirates and Etihad have all received over the years from their governments".

However, Qatar Airways' investment proposition to American Airlines was far from welcome.

In July, American ratcheted up the tension by announcing that it was dropping seat-selling partnerships with Qatar and Etihad because of the subsidies dispute.

The statement did not specify which public disclosure by American Airlines had prompted the decision. He said American "couldn't be more excited to keep our focus" on serving customers.