American airlines ending code share agreements with Qatar. Etihad Airlines

WASHINGTON, July 12 (Reuters) - American Airlines Inc said Wednesday it ending its code share agreements with Etihad Airways and Qatar Airways over an ongoing dispute over Gulf states support for the carriers.

The airline said the decision would not have a material financial impact and “is an extension of our stance against the illegal subsidies that these carriers receive from their governments.”

American and two other U.S. carriers argue that Gulf states are unfairly subsidizing state-owned carriers, driving down prices and crowding out competition on key routes, accusations those carriers deny.

The decision comes soon after Qatar Airways said it wanted to buy up to a 10 percent stake in American.

Etihad Airways is a flag carrier and the second-largest airline of the United Arab Emirates (UAE), based in Abu Dhabi. Qatar Airways is the state-owned flag carrier of Qatar.

Reporting by David Shepardson