Qatar Airways targets 10% stake in American Airlines

American Airlines has said that Qatar Airways, the Gulf country’s state-owned airline, has expressed interest in buying as much as a 10% stake, worth at least €724m ($808m), in the US airline.

The potential investment comes against a background of diplomatic and competitive turbulence for Qatar Airways, its home country and US airlines. Operations at Qatar Airways were disrupted after four Arab nations cut diplomatic and economic ties with Qatar this month in the worst diplomatic crisis in the region in years.

Separately, American, United Continental and Delta have pressed the US government to take action to curb American flights by Qatar and rival Gulf carriers Emirates and Etihad. The US carriers charge that their Gulf rivals have received billions of dollars in unfair state subsidies, allegations the Gulf carriers deny.