American Airlines, Qatar will split revenue on some flights

Image
AP Dallas
Last Updated : Feb 26 2020 | 1:02 AM IST

American Airlines and Qatar Airways said Tuesday they will put aside past hostilities and revive a partnership selling seats on some of each other's flights and splitting the revenue.

American says it hopes that the arrangement will boost its ability to sell travel to India and elsewhere in Asia and also to Africa weak spots in its current network.

If the U.S. government approves, American will sell seats on Qatar Airways flights between the U.S. and Doha, the capital of the Persian Gulf state of Qatar and a crossroads for travel between India and the U.S. and Europe. Qatar Airways could sell tickets on some American flights out of airports in Dallas-Fort Worth, Chicago, Philadelphia, Miami and Los Angeles. This type of cross-selling is called code-sharing.

American said it will also consider starting its own flights from the U.S. to Doha, although not before 2021.

Vasu Raja, American's senior vice president of network strategy, said the deal is part of a plan to expand the airline's international offerings.

Years ago we had a largely unprofitable international network. Business customers weren't flying us, so we cut a number of routes, Raja said in an interview. Now we want to be able to expand American Airlines globally as much as we can. American and Qatar broke off their code-sharing partnership in 2018 amid open hostility between the two airlines and their CEOs.

American, Delta and United complained to two successive U.S. presidents, Barack Obama and Donald Trump, that Qatar and two other Middle Eastern airlines were undercutting them with more than $50 billion in illegal government subsidies. After that, Qatar Airways signaled that it wanted to buy up to 10% of American's stock.

It withdrew after American CEO Doug Parker called the overture puzzling and concerning. Along the way, Qatar CEO Akbar Al Baker even disrespected flight attendants on U.S. airlines, calling them grandmothers, and pointing out the youthfulness of his airline's cabin employees.

Just a year ago, Al Baker publicly pondered quitting an airline alliance that includes American because of what he called bullying by some members singling out Parker.

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Feb 26 2020 | 1:02 AM IST

Next Story