American Airlines (NASDAQ:AAL) CEO is not happy that Qatar Airways wants in on his airline. In a letter to employees he lays out his concerns.
Continue Reading Below
|AAL||AMERICAN AIRLINES GROUP INC.||38.37||+0.99||+2.65%|
Parker's outreach to employees comes after the company received a notice from Qatar Airways about its intent to make an $808 million investment, or 10% stake, in the U.S. company.
American said in a regulatory filing it did not solicit the investment and that such an action would not change the composition of the company’s board, governance, management or strategic direction. What’s more, the Fort Worth, Texas-based airline said it prohibits any person or company from buying 4.75% or more of its outstanding shares without advance board approval to a written request.
In a statement, Qatar Airways said it had no intent to get involved with American's 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," the statement read.
Qatar Airways added its investment in the company will not exceed 4.75% without consent from American Airlines' board.
American said it did not receive such a request, but will respond to Qatar Airlines’ notice in accordance with the Hart-Scott Rodino (HSR) Act, which is required for an acquisition of more than $81 million.
Reporting by Victoria Craig and Matt Kazin.