Qatar Airways Enters Codeshare Agreement with oneworld Partner, LATAM Airlines

Boeing 787 airplane purchased by Qatar Airways is shown during a delivery ceremony in Everett Wash. Qatar Airways announced Sunday

This move has come as Qatar Airways plans to expand its South American route network and connectivity for its passengers.

State-owned Qatar Airways CEO Akbar Al-Baker last month had reiterated plans to invest in American as the company filed for US regulatory backing to buy shares. On Wednesday, Aug. 2, 2017, Qatar Airways said it is dropping an attempt to buy a big stake in American Airlin.

Back in June when Qatar sent its intended an notice that it was interested, American's CEO Doug Parker told employees that the company wasn't "particularly excited" about the outreach, noting that "we find it puzzling given our extremely public stance on the illegal subsidies that Qatar, Emirates and Etihad have all received over the years from their governments".

The move surprised the market as well as executives at the USA airline and came despite American Airlines' chief executive Doug Parker's vocal opposition to alleged "illegal subsidies" that certain Middle Eastern carriers receive from their governments.

Shares of American Airlines Group Inc. fell 65 cents, or 1.3 percent, to $50.41 in midday trading.

Qatar's proposal came against a backdrop of increasing tensions between American, other USA airlines and their counterparts in the Middle East.

Doha-based Qatar Airways has announced that it has entered in to a codeshare agreement with LATAM. We have witnessed significant growing demand between South America to Qatar and beyond...

Qatar said in a statement that it would continue to look for opportunities to invest in airlines around the world to develop "the best possible travel experience for its customers".

"This in no way changes the course for American", the company said.