American Airlines CEO says ‘no plans’ to raise its stake in China Southern, even as rivals do
- United States carrier rules out increasing investment in China Southern even as Qatar Airways buys a 5 per cent holding
American Airlines has ruled out making a larger investment in China Southern Airlines, saying it will maintain its holding unchanged at less than 3 per cent, even as a rival firm recently bought a 5 per cent stake in the mainland’s biggest carrier by passengers.
Doug Parker, the chief executive of American Airlines, said “no, we’re happy with our existing stake”, when asked by the Post of the need to adjust its 2.76 per cent stake in the Guangzhou-based carrier.
Doha-based Qatar Airways announced in January that it had acquired certain A and H shares in China Southern Airlines for an undisclosed sum in 2018, giving it a 5 per cent stake in the airliner.
Parker was in London attending a press conference with fellow executives of airlines belonging to the Oneworld alliance, as the group celebrated its 20th anniversary last week.
Signalling his comfort with its Qatari counterpart being a co-shareholder in the same Chinese airline, Parker said he had “absolutely” no problem. He was speaking on the sidelines of the event.
The Gulf carrier became the second foreign airline after American Airlines to buy into China Southern in a deal that was completed on December 28 last year.