Nice to see someone informed on this. Qatar has a long troubled history with the interior Arabs of the Arabian peninsula. That plays out in modern Gulf politics. They were also historic traders and pirates on the Gulf which brought them into periodic conflict with the various Emirates. That also plays out in the current geo-political environment.
When we were looking for a more or less permanent forward base for CENTCOM, the Saudis were typically reluctant to support forward positioning any more of our force structure than they already had. And frankly, we weren't entirely thrilled to commit more permanent party to life in the Kingdom. I was part of the negotiating team that cut the deal for the Doha airbase - a nearly fully developed base which Qatar essentially gave us for our use. By doing so, they pretty effectively protected themselves from any overt action by their Arab neighbors. The natural gas field in the Gulf is, indeed, a joint development project between Qatar and Iran. That deal tends to protect them from Iranian mischief. All in all, pretty deft diplomacy for a tiny country surrounded by numerous larger and more powerful neighbors. We have been fairly tolerant of Qatari financial support to Palestinians - they make up almost a half of Qatar's expat population. And, we of course, need the CENTCOM base. The President's recent negative comments about Qatar opened the door for the Saudis and Emirates to take some long restrained punitive action - though it has nothing to do about their supposed support of Hamas and everything about the two Arab states wanting to exercise some long withheld payback. We were once a little more sophisticated about managing that sort of thing.
I am flying Emirates in October; I foresee no issues with them. As Ruger Fan suggests, I might wait six months or so on a Qatar flight reservation just to ensure things settle back down to the normal level of tension between the Arab states.
Just read where Qatar wants to buy 10% of American Airlines. Another strategic move?
https://www.nytimes.com/2017/06/22/business/dealbook/qatar-airways-american-airlines.html
In Qatar Airways, American Airlines May Have an Unwanted Suitor
Akbar al-Baker, the chief executive of Qatar Airways, recently approached his counterpart at American Airlines, a bitter rival, with some news: His state-owned company wanted to buy a 10 percent stake in American.
The unexpected and bold approach, disclosed by American on Thursday, underscored the broad ambitions of Qatar Airways, which has grown from a small regional player focused on the Middle East to a global carrier with flights to 150 destinations.
But the move also was certain to intensify a long-running debate in Washington about whether airlines based in the Persian Gulf have an unfair advantage. American, with other major domestic carriers, say Qatar and other Gulf airlines receive large government subsidies that violate international agreements. Domestic carrier executives have appealed to President Trump and Secretary of State Rex W. Tillerson to push back against the Gulf countries.
Qatar’s proposed investment could be limited, as a 10 percent stake would require approval from American’s board. Doug Parker, the company’s chief executive, said in an interview that the proposed investment would only “intensify our opposition” to any subsidies given to the Gulf carrier.
“We’re a bit bewildered as to why Qatar is interested in investing in American Airlines, given the very public and aggressive position we’ve taken about their business model,” he said.
Qatar Airways’ approach also adds a complication to the United States’ increasingly troubled relationship with Qatar, the tiny but wealthy Persian Gulf Arab emirate that borders Saudi Arabia and is home to the largest American military air base in the Middle East. Qatar is in the midst of a crisis ignited by a feud with Saudi Arabia, which imposed an embargo against Qatar this month over accusations that Qatar supports terror groups.
Mr. al-Baker, the Qatar Airways executive, first proposed the investment during a brief conversation with Mr. Parker at an airline industry conference this month in Mexico, according to Matt Miller, a spokesman for American Airlines. Qatar then notified federal agencies, as required by antitrust law, and American disclosed the proposal Thursday.
In a statement, the gulf carrier described the potential purchase as a “strong investment opportunity” and promised not to involve itself in operations.
“Qatar Airways believes in American Airlines’s fundamentals and intends to build a passive position in the company with no involvement in management, operations or governance,” the statement said.
American’s stock gained about 1 percent in trading Thursday, closing at $48.97 a share.
Qatar Airways said it planned to initially buy 4.75 percent of American’s stock on the public market, a stake worth about $1.1 billion. To buy more than 4.75 percent, the gulf carrier would need the approval of American’s board.
But even a small smaller investment — about $81 million — would set off a Justice Department review, raising questions about how the Trump administration would handle Qatar’s move. Other agencies, like the Treasury Department and the Committee on Foreign Investment in the United States, an interagency group, could also review the investment.
Members of Congress have been skeptical about such deals. Chuck Schumer of New York, the Democratic leader in the Senate, said on Thursday that Qatar’s move should be carefully scrutinized by the Justice Department in particular.
“I hope and expect D.O.J. will review this proposal with a fine tooth comb, looking at every possible way this could impact the U.S. — from economic factors to market competitiveness to national security,” Mr. Schumer said.
Several domestic carriers, including American Airlines, have complained to the Trump administration and Congress, saying that the Persian Gulf airlines receive subsidies from their government backers. The money, the American companies wrote in a letter to Secretary Tillerson, has allowed such companies “to operate without concern for turning a profit” and “therefore focus entirely on stripping market share and driving out competition.”
If federal officials side with airlines based in the United States, officials could limit the number of flights the Gulf airlines could schedule for the American market.
The American carriers have echoed Mr. Trump’s “America First” rhetoric, saying foreign carrier subsidies hurt the country’s job market. “For every long-haul route lost or foregone as a result of subsidized gulf carrier competition, more than 1,500 American jobs are lost,” the letter in February said.
Captain Dennis Tajer, a spokesman for the Allied Pilots Association, a union group, said pilots were worried that Qatar was trying to undermine the aviation industry.
“It’ll be up to the president to decide when the line of the ‘America First’ philosophy is crossed,” he said.
Mr. Trump has acknowledged the dispute, but the administration’s stance is not clear. In February, the president told airline executives, “I know you’re under pressure from a lot of foreign elements and foreign carriers.” But he added: “We want to make life good for them also.”
Representatives for the White House and the Commerce, State, Treasury and Justice Departments would not comment on the proposed deal or on whether it might come under review of the Committee on Foreign Investment in the United States.
Qatar Airways has repeatedly denied that it is subsidized by the Qatari government.
Supporters of the Gulf airlines have emphasized the economic activity the carriers provide to the United States. The U.S. Travel Association, a tourism trade group, released an analysis last week showing Emirates, Etihad and Qatar ferried 1.7 million passengers who might not have otherwise traveled to the United States to New York, Chicago, Los Angeles and other cities in 2016.
The Gulf airlines connect “underserved and unserved parts of the globe and deliver travelers to the U.S. who want to spend money and conduct business,” said Jonathan Grella, an executive vice president at the travel organization.
Qatar Airways has also been severely affected by the recent diplomatic flare-up in the Gulf, with Saudi Arabia and four other Arab states cutting diplomatic ties with Qatar. Mr. Trump added to the crisis by emphatically siding with the Saudis on Twitter — even as his own diplomats appeared to disagree.
The embargo has resulted in thousands of canceled flights in Qatar Airways’s home region. The airline can no longer fly to Bahrain, Egypt, Saudi Arabia or the United Arab Emirates. Mr. al-Baker has called the embargo a “lasting wound.”
The company faces other challenges as well. Travel to the United States from the Middle East is expected to fall up to 20 percent this summer for multiple reasons, including Mr. Trump’s attempts to enact a travel ban for citizens from several predominantly Muslim countries. The Trump administration has also barred passengers on incoming flights from 10 Muslim-majority companies from carrying onboard any electronic devices larger than a cellphone.
Still, the airline has plans to bolster its presence in the United States, where it flies to 10 cities.
If Qatar is able to deepen its relationship with American after acquiring a stake as planned, the Gulf carrier could offer its passengers easy access to American’s network in the United States, said John Strickland, an aviation consultant in London.
“This is quite clearly an important market for them, and one they’re increasingly expanding into,” he said.
