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US Airlines Taken Over By European Airlines.....  
User currently offlineKl911 From Czech Republic, joined Jul 2003, 5294 posts, RR: 15
Posted (10 years 8 months 2 days 11 hours ago) and read 3692 times:

This is not intended to start a EU vs US war, but imagine: the Airline world was totaly liberated, American companies are making losses, European airlines are making profit, which airline would takeover who?

LH taking over UA and US
BA taking over AA
AF Taking over DL

( just examples...)

What's your opinion?

[Edited 2004-04-21 01:52:33]

8 replies: All unread, jump to last
 
User currently offlineAUAE From United States of America, joined Apr 2004, 296 posts, RR: 3
Reply 1, posted (10 years 8 months 2 days 11 hours ago) and read 3680 times:

AF takes over DL...gets my vote.

darn French  Smile shouldn't have made fun of their wine.




Air transport is just a glorified bus operation. -Michael O'Leary, Ryanair's chief executive
User currently offlineStevenUhl777 From , joined Dec 1969, posts, RR:
Reply 2, posted (10 years 8 months 2 days 8 hours ago) and read 3545 times:

LH taking over UA and/or US...

That would create the largest airline in the world, would it not? Same would hold true if BA took over AA.

So, I would say that even if the ownership rules are relaxed enough to allow 50.1% or more, I still think the DOJ and EU would kill the deal. I don't even think W's DOJ would allow such a merger, they didn't even allow UA/US, if that's any precedent, and I seriously doubt "sKerry" would allow it either if he got in.



User currently offlineLtbewr From United States of America, joined Jan 2004, 13193 posts, RR: 15
Reply 3, posted (10 years 8 months 2 days 7 hours ago) and read 3506 times:

The politics in the USA, in a major election year, wouldn't allow for any higher % of ownership of any USA based airlines. Part of this is also due to the right of the US government to seize in an emergency, for military use, some of the aircraft of the commercial/freight co's and their crews. Actually some have suggested that Virgin in USA to be created by buying out an existing USA airline, but that knocked down as no co in decent enough shape to be worth taking over and existing foreign ownership rules. There is also the problems of various agreements for US/Foreign flights rights and would an foreign airline want to fly under their name flights within the USA? (where such access is very limited)

User currently offlineGigneil From United States of America, joined Nov 2002, 16347 posts, RR: 85
Reply 4, posted (10 years 8 months 2 days 7 hours ago) and read 3499 times:

I think its a great idea.

A) We're capitalists, right?
B) US airlines can't keep their people working.
C) If a foreign company keeps US workers in their jobs, even better.


User currently offlineAirways6max From United States of America, joined Aug 2003, 494 posts, RR: 0
Reply 5, posted (10 years 8 months 2 days 7 hours ago) and read 3478 times:

I don't know how such a scenario might play out, but I do think that the U.S. and EU should sign an open-skies agreement, much like the U.S. and Canada. European airlines provide better service than their American counterparts and the competition may be good. Remember what Japanese cars did to American cars? Japanese competition forced the U.S. car manufacturers to make better cars. Competition works and the more choice, the better, certainly for the flying public.

User currently offlineCadmus From United Kingdom, joined Jan 2004, 187 posts, RR: 0
Reply 6, posted (10 years 8 months 2 days 3 hours ago) and read 3387 times:

What exactly are the current rules for foreign ownership in the EU and US? And do they refer to total or individual ownership (i.e. 10% of the shares per foreign company, or 10% in total foreign ownership). If it's the latter, how do they stop the limit from being accidently breached?


Understanding is a three-edged sword
User currently offlineGSPSPOT From United States of America, joined Sep 2003, 3104 posts, RR: 2
Reply 7, posted (10 years 8 months 1 day 23 hours ago) and read 3273 times:

I don't know who would/could take over whom, but from my transatlantic experience, it would only benefit the passengers, if European airlines could own or control American ones...


Finally made it to an airline mecca!
User currently offlineScandinA340 From Australia, joined Apr 2004, 89 posts, RR: 0
Reply 8, posted (10 years 8 months 1 day 22 hours ago) and read 3226 times:

If it's anything like QF's requirement to have 51% Australian ownership, QF alerts the market when the 51% cap is breached very slightly, and waits the few hours it takes for the active market to drop the foreign shareholding below 51%.

It's very very hard on the open share market to track ownership preemptively or even in real time. So I suspect given the high trading volumes of AMR/UAL, they do a similar thing to QF.


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