In the latest twist in the complicated relations between U.S. airlines and their Gulf-based competitors, American Airlines is dropping its long-standing codeshare agreements with Qatar and Etihad Airways.
Under codesharing, airlines sell tickets on each others' flights and share the revenue from the flights. It's not a complete break: Qatar is still a member of Oneworld alliance, allowing a variety of booking and loyalty program connections, and American has a separate agreement with Etihad that allows earning and redeeming AAdvantage miles on some flights.
Relationships between the three big Mideast carriers (Emirates is the other) and U.S. carriers have been tense as the U.S. carriers accuse the government-owned trio of unfair competition and unfair subsidies. Ironically, Qatar is trying to buy 10% of American's shares. It also owns 20% of the shares in IAG, the parent company of British Air, Vueling and Aer Lingus.
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