American Airlines CEO says ‘no plans’ to raise its stake in China Southern
United States carrier rules out increasing investment in China Southern even as Qatar Airways buys a 5% 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%, even as a rival firm recently bought a 5% 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% 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% stake in the airliner.
Signalling his comfort with its Qatari counterpart being a co-shareholder in the same Chinese airline, Parker said he had “absolutely” no problem.
“That doesn’t affect our relations with Qatar at all,” said Parker, when asked of the impact of Qatar Airways’ status a shareholder in China Southern.
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