Qatar Airways’ move to buy 10% stake surprises American Airlines
Jun 23, 2017: A regulatory filing by American Airlines announcing the intention of the Middle East Carrier Qatar Airways to acquire 10 percent stake from the open market surprised the aviation industry. This grabbed the headlines of most of the western newspapers. And one of them quoted American Airlines CEO Doug Parker saying Qatar Airways’ move as “puzzling”.
According to the official statement from the state-owned carrier from the Middle East, “Qatar Airways sees a strong investment opportunity in American Airlines. Qatar Airways believes in American Airlines’ fundamentals and intends to build a passive position in the company with no involvement in management, operations or governance. Qatar Airways has long considered American Airlines to be a good Oneworld Alliance partner and looks forward to continuing this relationship. Qatar Airways plans to make an initial investment of up to 4.75 percent. Qatar Airways will make all necessary regulatory filings at the appropriate time.
The American Airlines has clarified that the move of stake buy by Qatar Airways was unsolicited, but admitted that the CEOs of both airlines have spoken in this regard. The regulatory filing by American Airlines says, "The proposed investment by Qatar Airways was not solicited by American Airlines and would in no way change the Company's Board composition, governance, management or strategic direction."
Qatar Airlines plans to invest $808 million in acquiring the stock of American Airlines from the open market. American Airlines' shares are listed on the Nasdaq. The US limits foreign ownership of airlines to less than 25 percent. Any investment in American Airlines beyond 4.75 percent requires approvals from the board. Qatar initially would look at 4.75 percent ($1.1 billion) and raise it to 10 percent.
The said move by Qatar also astonished the aviation experts as there was a long pending feud between the US carriers and the Middle East carriers over unfair subsidies from their governments. Qatar Airways was started as regional airlines and has currently operates to 150 destinations in the world.
You may also like:-
This partnership between the two companies is because of the e-commerce boom experienced in Belgium during the Covid-19 pandemic
After a five month pause, KLM will resume offering its non-stop service from Edmonton to Amsterdam, beginning October 29, 2020.
Under the terms of the MoU, Emirates SkyCargo and IHC will work together to develop innovative logistics solutions for effective crisis relief operations.
All communication will run via OSCA, from order confirmation and delivery planning to transport bookings and inquiries among other aspects of the software.
Laem Chabang has a range of strategic multi modal capabilities alongside its proximity to the country’s major deep sea port, transit cargo terminal and the future Thailand third airport project at U-Tapao.
The company said the new aircraft will boost the cargo and supply operations and help meet the significant surge on the demand for medicine, medical and preventive equipment and other similar goods.
Etihad Aviation Group has promoted Martin Drew to the role of managing director – Cargo and Logistics. Drew will assume the position on November 1.
The additional cold room (COL), with temperatures ranging from +2 degrees Celsius to +8 degrees Celsius, will provide the capacity required to handle Covid-19 vaccines.
German startup Volocopter has teamed up with DB Schenker to deploy its heavy-lift drones, in a project that will gather vital practical flying experience before its air taxis enter service.
August showed a year-over-year (YoY) drop of 17.2 per cent in worldwide volume and of 29 per cent in shipments carried.
Kempegowda International Airport, Bengaluru (KIAB/ BLR Airport) processed 180,745 kg of pomegranates from April to August 2020, making it India’s leading airport for pomegranate exports.
In this arrangement, CHAMP will be the preferred partner in the roll-out and testing of any new technologies and innovations.
The next big challenge will be future proofing the logistics workforce through training and upskilling in increasingly technologically sophisticated operations.