American Airlines ends codeshare with Etihad and Qatar Airways amid trade dispute

The codeshare will end in March, 2018

American Airlines is ending its codeshare with Qatar Airways and Etihad. Alan Diaz / AP Photo

American Airlines said it is ending code-share agreements with both Qatar Airways and Etihad Airways amid a trade dispute with the two Middle East carriers.

The American-Etihad code-share, which started in 2009, would end on March 25, 2018, an Etihad spokeswoman said.

American, the largest US carrier, in a filing with the US securities and exchange commission, said that Qatar Airways, which last month expressed interest in buying up to 10 per cent of American, had withdrawn its previous antitrust filing with the US federal trade commission (FTC) and submitted a new filing on Monday.

Representatives for Qatar Airways could not be reached for comment. The chief executive of Qatar Airways, Akbar Al Baker, said last week that the carrier would push on to buy shares on the open market despite American's opposition.

The FTC did not comment. The agency typically does not disclose details of requests for antitrust approval filed by companies seeking to acquire stakes in rivals.

American Airlines' own rules require advance approval from its board for the purchase of a stake of 4.75 per cent or more. The airline last month also noted that "there are foreign ownership laws that limit the total percentage of foreign voting interest to 24.9 per cent".

The decision to cancel code-sharing deals with the two carriers would not have a material financial impact on American, the carrier said, and "is an extension of our stance against the illegal subsidies that these carriers receive from their governments." The Middle Eastern carriers have rejected the complaints about subsidies.

Etihad, which flies to six US cities, accused American of being “anti-competitive” and “anti-consumer” and said it was disappointed with the decision to end the code-share agreement.

"We are committed to the US market and American consumers, and are taking all possible measures to ensure that the flying public is not harmed by this decision," an Etihad spokeswoman said.

An interline relationship between Etihad and American, which allows customers from two airlines to buy connecting flights on one ticket, would remain in place to connect passengers to secondary markets, the spokeswoman said.

* Reuters