Quote: A flurry of interest in two European airlines in recent weeks is unlikely to pave the way to large-scale consolidation of the industry, according to the chief executive of British Airways.
Quote: One airline already in play is Iberia, the Spanish national carrier which has received a €3.4bn (£2.3bn) takeover approach from TPG Capital, a US private equity firm. BA owns a 10% stake in Iberia and has appointed investment bank UBS to advise on the holding. The BA boss indicated that he was not interested in taking over Iberia, reiterating the company's statement last week when it said a sale was one of the options for the stake.
quite an interesting article. I was surprised that it hasn't already been posted but a search turned up nothing.
BAStew From Madagascar, joined Sep 2006, 1164 posts, RR: 2
Reply 2, posted (9 years 3 weeks 6 days 12 hours ago) and read 2261 times:
The guardian article makes Iberia seems a bit of a bum deal really. Although open skies is great for US-EU operations, the biggest benefit in IB is their latin american presence. However, most of these routes are covered by spanish-latam bilaterals preventing any proper 'merger'.
I also like his comment on whether BA had considered buying Alitalia: 'Yes: for 1.5 seconds'.
Macilree From New Zealand, joined Dec 2006, 243 posts, RR: 8
Reply 3, posted (9 years 3 weeks 6 days 2 hours ago) and read 2127 times:
Quoting BAStew (Reply 2): Although open skies is great for US-EU operations, the biggest benefit in IB is their latin american presence. However, most of these routes are covered by spanish-latam bilaterals preventing any proper 'merger'.
If by "merger" you are talking about with another European airline like BA, then note that, following the 5 November 2002 European Court of Justice (ECJ) "open skies" judgements, the European Commission (EC) and EU member states are now making good progress in negotiating with non-EU countries (including some in Latin America - Argentina, Bolivia, Chile, Cuba, Ecuador, Panama, Paraguay, Peru, Uruguay) either what the EC calls "horizontal" agreements or by EU member states amending bilaterals replacing what I expect would be the standard "substantial ownership and effective control" by nationals of an individual EU member state criteria in their bilaterals.
This should be paving the way for European consolidation but there are many countries that have yet to sign up. I have not done an analysis of Iberia's route network and I don't have access to the Spanish bilateral and "horizontal" texts to see what key markets have yet to be covered but a quick look at Jim Liu's (jimyvr) hand-drawn route map for IB's long-haul services is a good place to start.