The airline said in a statement that after further review, it has "taken the decision not to proceed with its proposed passive financial investment in American Airlines", noting that the plan "no longer meets our objectives".
In December 2016, Qatar Airways had purchased a 10 percent stake in Chile's LATAM Airlines Group for Dollars 608 million. On Wednesday, Aug. 2, 2017, Qatar Airways said it is dropping an attempt to buy a big stake in American Airlin. The Middle Eastern airlines deny getting illegal subsidies.
Akbar Al Baker, Group chief executive, Qatar Airways, said, "We have witnessed significant growing demand between South America to Qatar and beyond".
On July 12, American filed a Securities and Exchange Commission document saying that Qatar's plan to invest in American Airlines was unsolicited, and that it would continue to lobby for a US government crackdown on Gulf carriers Qatar, Emirates and Etihad.
US airlines have accused Qatar, Emirates and Etihad Airways of receiving billions of dollars in unfair subsidies from their governments, with the USA carriers lobbying the Trump administration to intervene.
American chairman and CEO Doug Parker called the potential investment "puzzling, at best, and concerning, at worst" in a letter to employees.
Doha-based Qatar Airways has announced that it has entered in to a codeshare agreement with LATAM. "Qatar Airways will continue to seek opportunities to invest in global aviation".
Additionally, Qatar Airways Cargo has also expanded its footprint in South America, with commencement of freighter services to São Paulo, Brazil; Buenos Aires, Argentina; and Quito, Ecuador. He said American "couldn't be more excited to keep our focus" on serving customers.