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Qatar's CEO Suggests He Could Split Oneworld in Defense Against AA

Jan. 13, 2016
3 min read
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Qatar's CEO Suggests He Could Split Oneworld in Defense Against AA
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Qatar Airways made headlines last month when it launched the first A350 flight from the US. This week, the airline's CEO, Akbar Al Baker, is in Los Angeles to promote the carrier's new service to LAX, and as usual, he was outspoken against his US-based rivals when addressing questions from journalists at the event. The problem is that one of Qatar's "rivals" is American Airlines, a fellow Oneworld alliance member.

Naturally, that complicates the situation — AA and Qatar have a formal partnership, offering codeshares and the ability to earn and redeem miles on one another's flights. However, American, Delta and United have all publicly expressed displeasure with aggressive pricing (and, unofficially, a superior in-flight experience) from the three major gulf carriers (Emirates, Etihad and Qatar) — Delta and United have gone so far as to cancel flights to the UAE (perhaps American may have followed suit if it had offered a flight to Dubai).

A Qatar A350 during a takeoff roll.

Now, Qatar is firing back — specifically at its own partner, American Airlines. Today, Bloomberg reported that CEO Akbar Al Baker made some aggressive remarks at the LA event, saying "We don’t get bullied by anybody. If American does not want to work fairly with us, we will consult the others and we could form our own mini-alliance if we wanted to."

Al Baker is suggesting that he could split the alliance — unofficially, perhaps — in an effort to put pressure on AA. Other Oneworld members include British Airways, Cathay Pacific, Iberia, JAL, Malaysia, Qantas, Royal Jordanian and SriLankan, many of which have much more significant relationships with AA than Qatar. While that's unlikely to happen, AA has likely been feeling some pressure to back down, and leave the fight to Delta, instead.

What American, Delta and United really should be working on — instead of taking their fight public — is improving the in-flight product in an attempt to draw travelers back in, rather than allowing foreign-based airlines to one-up them with better planes, service and fares. While it's unlikely we'll ever see a US-based airline match the experience of, say, Etihad's A380 Residence, there's plenty they could be doing to improve the customer experience.

H/T: Bloomberg

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  • Recommended Credit

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

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  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.