American Airlines Ends Codeshare Agreement With Two Gulf Carriers

by Daniel McCarthy
American Airlines Ends Codeshare Agreement With Two Gulf Carriers


American Airlines has ended its codeshare agreements with Etihad Airways and Qatar Airways because of disputes over what it calls unfair government subsidies of Gulf carriers.

The codesharing agreement will officially end June 29 with March 24, 2018, set as the last valid date of travel using the codeshare.

American, along with Delta and United, has been petitioning the U.S. government to revisit the Open Skies treaty that has allowed Gulf carriers to expand rapidly over the Atlantic. The U.S. airlines believe that government subsidies that Gulf airlines receive violate the Open Skies agreement. President Donald Trump is reportedly mulling those changes but no decision has been made yet.

In a statement, Etihad said that American’s decision “will reduce choice for consumers and may result in higher fares for travelers” and that it terminates “flight options to points in the Middle East, Indian subcontinent and other destinations” for U.S. travelers.

Despite the tension, which included Qatar CEO Akbar Al Baker calling U.S. flight attendants "grandmothers" last month, Qatar is still expected to go ahead with its purchase of a 10% stake in American Airlines.

American will continue to honor other agreements with the Qatar and Etihad including interline access cargo agreements, frequent flyer program and lounge access.

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