Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
BA / IB Merger To Be Signed Today  
User currently offlineOP3000 From United States of America, joined Jun 2009, 1784 posts, RR: 2
Posted (4 years 8 months 1 week 23 hours ago) and read 8687 times:

According to Spanish newspaper EL PAIS, the board of directors of BA and IB are expected today to sign the merger agreement they forged at the end of 2009:

http://www.reuters.com/article/idUSTRE62O1LB20100325
http://www.elpais.com/articulo/econo...elpepieco/20100325elpepieco_10/Tes
(In Spanish)


(Reuters) - The proposed merger of British Airways and Spanish peer Iberia could move a step closer on Thursday when Iberia bosses were expected to sign an agreement, as fears over BA's pension deficit recede.

Deals

An Iberia spokesman told Reuters the Spanish carrier was holding its end-of-month board meeting in Madrid on Thursday, triggering hopes for an imminent announcement of a definitive merger deal with the British carrier.

"I would expect the BA-Iberia to be signed, sealed and delivered very soon, maybe even today," said Davy Stockbrokers analyst Stephen Furlong.

A BA spokesman would not say whether its executives would sign the merger agreement on Thursday.


41 replies: All unread, showing first 25:
 
User currently offlinePM From Germany, joined Feb 2005, 6961 posts, RR: 63
Reply 1, posted (4 years 8 months 1 week 23 hours ago) and read 8717 times:

It has been a while in coming but when it arrives it will be a huge event.

I, for one, welcome it. Both parties stand to gain.

Next step...?


User currently offlinescouseflyer From United Kingdom, joined Apr 2006, 3398 posts, RR: 9
Reply 2, posted (4 years 8 months 1 week 23 hours ago) and read 8534 times:

Quoting PM (Reply 1):
Next step...?

that's an interesting question - there's not too many large carriers left in Europe that either LH or AF haven't got an interest in, what about EI or TP?


User currently offlineDirkou From United States of America, joined Jun 2003, 571 posts, RR: 0
Reply 3, posted (4 years 8 months 1 week 23 hours ago) and read 8456 times:

TP is totally bankrupt with a deficit of over 2000 million EUR and full of labor problems.
It is (correct me if I'm wrong) the only airline in Europe that operates 95% of their long haul flight in monopoly and even with that isn't capable of giving a profit.

I don't see any airline picking up TP unless it is privatized and cleared of its deficit first.


User currently offlineRAFVC10 From Spain, joined Sep 2005, 1980 posts, RR: 6
Reply 4, posted (4 years 8 months 1 week 23 hours ago) and read 8414 times:
Support Airliners.net - become a First Class Member!

Quoting OP3000 (Thread starter):

And the result of this merge will be the name of International Airlines.

Source: EFPA (European Financial Planning Asociation)

Regards,

Gerard



El dia que los gilipollas vuelen, no podremos ver la luz del sol!
User currently offlinebuck3y3nut From United States of America, joined Jul 2006, 881 posts, RR: 0
Reply 5, posted (4 years 8 months 1 week 23 hours ago) and read 8374 times:

Quoting Dirkou (Reply 3):
TP is totally bankrupt with a deficit of over 2000 million EUR and full of labor problems.

Wow, that's a lot of change!!! How is it still operational?


User currently offlineTalaier From Spain, joined May 2008, 490 posts, RR: 0
Reply 6, posted (4 years 8 months 1 week 23 hours ago) and read 8327 times:

Quoting buck3y3nut (Reply 5):
Wow, that's a lot of change!!! How is it still operational?

It's publicly owned.

Actually to update the news, the agreement has been delayed for a few days/weeks until the last legal issues are cleared out. Apparently the lawyers of both companies still hadn't got into terms with all the paperwork. In any case, the formal signature is a given any time now, although for 100% reassurance we will have to wait until June, when BA's agreement over the pension deficit is to be formally agreed. Until then IB reserves the right to pull out any time.


User currently offlineOP3000 From United States of America, joined Jun 2009, 1784 posts, RR: 2
Reply 7, posted (4 years 8 months 1 week 22 hours ago) and read 8130 times:

Quoting Dirkou (Reply 3):
It is (correct me if I'm wrong) the only airline in Europe that operates 95% of their long haul flight in monopoly and even with that isn't capable of giving a profit.

SN was in that category with their African network. They're not in the red anymore I believe, since being taken over by LH. But previously when they were Sabena and SN Brussels, they lost money while their long-haul network had the same proportion of monopoly routes as TP, and in many cases they were countries that had no other service to Europe, let alone BRU. They were and still are minting coin on those routes with their fares.

Incidentally, the TP CEO (Mr Pinto) had been CEO of RG previously, and is Brazilian. When RG was going bust, he went all out in positioning TP on the monopoly routes it enjoys in about a dozen Portugal-Brazil routes. Though he obviously has not been very successful battling the costly bureaucracies, neither with TP or RG.


User currently offlinePEET7G From Hungary, joined Jan 2007, 695 posts, RR: 0
Reply 8, posted (4 years 8 months 6 days 20 hours ago) and read 7005 times:

Quoting PM (Reply 1):
Next step...?

I know I am dreaming, but:

- Now that MA is back in 95% government ownership, and this good for nothing Russian "investors" are being kicked out, MA needs to be sold again soon and this time a strong and reliable partner could be the joint BA-IB. I am absolutely convinced that MA would be a valued addition to their network leveling out their absence in the East-European region.
What other options would there be? Star and LH already X-ed out OS and LO, while Skyteam is already in with OK, and AF-KL would be an ideal owner for OK when they go through with the privatization. So on a second thought, MA is not that of an unrealistic candidate for BA-IB ownership if they want to keep up with their biggest competitors…

Quoting scouseflyer (Reply 2):
that's an interesting question - there's not too many large carriers left in Europe that either LH or AF haven't got an interest in, what about EI or TP?

Why the need of a big, but struggling airline? Get one that is strategically placed in a region you have room for expansion (MA?   )
- Why TP? If TP goes bellyup IB can take over without risking any investment dumped in that deep money-pit.
- Why EI? Same thing applies as with TP. BA can take over the passengers without risking dumping money into EI



Peet7G
User currently offlineadriaticflight From United Kingdom, joined Jan 2004, 523 posts, RR: 2
Reply 9, posted (4 years 8 months 6 days 19 hours ago) and read 6922 times:

Quoting PEET7G (Reply 11):
a strong and reliable partner could be the joint BA-IB

I agree totally!


User currently offlineOP3000 From United States of America, joined Jun 2009, 1784 posts, RR: 2
Reply 10, posted (4 years 8 months 6 days 19 hours ago) and read 6844 times:

Quoting PEET7G (Reply 11):
So on a second thought, MA is not that of an unrealistic candidate for BA-IB ownership if they want to keep up with their biggest competitors…

The folks at BA (who in the end will run the BA-IB show) are not very aggressive for that sort of thing. And they're finances are not there right now even if they were. If a foreign carrier takes MA over, look for it to be LH, AF or TK. The latter has expressed interest in owning a chunk in a Central European carrier or two, and last rumors pointed to negotiations with JAT. When you have an airline in the red like MA the first concern is finances, so its all about who comes up with the financial muscle. Alliance loyalty comes second.


User currently offlinepar13del From Bahamas, joined Dec 2005, 7498 posts, RR: 8
Reply 11, posted (4 years 8 months 6 days 19 hours ago) and read 6816 times:

Quoting PM (Reply 1):
It has been a while in coming but when it arrives it will be a huge event.

I, for one, welcome it. Both parties stand to gain.

I disagree, since these deals are supposed to be economic, IB should hold off for a while to get a better financial deal. Due to the last strike and the one over this weekend, BA has and will suffer major damage in the next few months, the 7 million per day is not what I am talking about. Unless BA terminates all employees who went on strike, one can expect the level of service on BA to take a hit, folks who lost travel benefits, call the others scabs, do not a healthy work place make and it will eventually surface in the level of customer service.
BA will need a merger to continue at the "level" they deem they should be at, IB waiting 6 months or so will only make them the stronger and more desired partner to resolve the worker mess that is now BA.


User currently offlinekgaiflyer From United States of America, joined Jul 2008, 4320 posts, RR: 1
Reply 12, posted (4 years 8 months 6 days 17 hours ago) and read 6650 times:
Support Airliners.net - become a First Class Member!

Quoting PEET7G (Reply 8):
Why TP? If TP goes bellyup IB can take over without risking any investment dumped in that deep money-pit.

Having only one trans-Atlantic carrier -- one which already has a strong presence in South America -- for the entire Iberian peninsula actually makes a lot of sense.  checkmark 

[Edited 2010-03-26 14:42:57]

User currently offlinesflaflight From United States of America, joined Nov 2005, 1183 posts, RR: 1
Reply 13, posted (4 years 8 months 6 days 16 hours ago) and read 6521 times:

Quoting kgaiflyer (Reply 12):
Having only one trans-Atlantic carrier -- one which already has a strong presence in South America -- for the entire Iberian peninsula actually makes a lot of sense

...but bad for the consumer. No thank you. I do not want a monopoly to control fares, quality, schedules. I love to have choices where I can choose which airline treats me better and gives me chioces. And if the carrier decides to strike. No thank you.


User currently offlinetalaier From Spain, joined May 2008, 490 posts, RR: 0
Reply 14, posted (4 years 8 months 6 days 13 hours ago) and read 6300 times:

Quoting OP3000 (Reply 10):

Actually the finances aren't that bad if you count in the huge amount of cash IB has in the bank and ready to be spent. BA is in trouble but not IB so that should even things out. As to buying MA I'm sure that it's not on their list of priorities but nevertheless if some other alliance tried to cuddle up they would eventually try and keep it in oneworld. How far would they go? I don't know but I wouldn't rule out a buyout.


User currently offlinekl911 From Czech Republic, joined Jul 2003, 5260 posts, RR: 15
Reply 15, posted (4 years 8 months 6 days 12 hours ago) and read 6250 times:

Quoting PEET7G (Reply 8):
What other options would there be? Star and LH already X-ed out OS and LO, while Skyteam is already in with OK, and AF-KL would be an ideal owner for OK when they go through with the privatization.

Very true, but the OK deal has been put on hold since first KL/AF withdrew and then the only Czech investor as well. OK is losing a lot of money at the moment. But I agree that AF /KL is the prime candidate to take over OK, I just hope they dont wait to long..... 


User currently offlineMH017 From Netherlands, joined Apr 2005, 1692 posts, RR: 30
Reply 16, posted (4 years 8 months 6 days 4 hours ago) and read 6039 times:

Excuse my ignorance, but was something signed last thursday (25/03) ?

It has been very quiet (as least in the press) about the signing...



don't throw away tomorrow !
User currently offlinePM From Germany, joined Feb 2005, 6961 posts, RR: 63
Reply 17, posted (4 years 7 months 3 weeks 3 days 7 hours ago) and read 5529 times:

Signed.

http://www.flightglobal.com/articles...-sign-formal-merger-agreement.html


User currently offlineEDICHC From , joined Dec 1969, posts, RR:
Reply 18, posted (4 years 7 months 3 weeks 3 days 6 hours ago) and read 5322 times:

Hola! Iberia (UK)  

User currently offlineBoeingVista From Australia, joined Jan 2009, 1584 posts, RR: 3
Reply 19, posted (4 years 7 months 3 weeks 3 days 6 hours ago) and read 5312 times:

Quoting PM (Reply 1):
Next step...?

Qantas would make total sense for all parties but I dont see it happening.

[Edited 2010-04-08 01:52:05]


BV
User currently offlinetalaier From Spain, joined May 2008, 490 posts, RR: 0
Reply 20, posted (4 years 7 months 3 weeks 3 days 5 hours ago) and read 5249 times:

In the end the company will be listed in both the London and Madrid Stock Exchanges, meaning anything that has to do with takeovers or mergers will only be supervised by Spanish authorities.

It was about time they signed it!


User currently offlinePM From Germany, joined Feb 2005, 6961 posts, RR: 63
Reply 21, posted (4 years 7 months 3 weeks 3 days 5 hours ago) and read 5242 times:

I haven't seen anywhere where a combined BA/IB ranks in the various measurements of airline size.

Does anyone have figures?


User currently offlineAsturias From Spain, joined Apr 2006, 2156 posts, RR: 16
Reply 22, posted (4 years 7 months 3 weeks 3 days 4 hours ago) and read 4989 times:

Very well, the executives get their bonus. Shareholders may well get something out of this, but this is recommended by executives, not shareholders. And executives are hired, after all, to be the experts.

All in all, this is not about a creation of a large airline - in fact no such thing has happened. I don't know how versed people are generally in corporate law, but this is a connected entity, but three companies. Not one company.

I realize people don't see much difference, but there is a considerable difference. While a friendly and close cooperation is almost guarranteed, neither IB nor BA are obligated to preserve anything except their own bottom line. And they are obligated to do so, no matter who owns them.

Either way, until I see direct benefits for pax, service and employees, then I'm going to wait until I applaud this .. venture.

asturias



Tonight we fly
User currently offlinetrystero From Portugal, joined Oct 2008, 248 posts, RR: 0
Reply 23, posted (4 years 7 months 3 weeks 3 days 3 hours ago) and read 4927 times:

What will happen to the liveries of both companies? They're merging one of prettiest - BA - with one of the, let's not say ugliest, but excessively seventies. IB has a nice logo but very outdated colors, and in my humble opinion, they don't fit well in any aircraft I can remember.


Of course I love you. Now get me a beer.
User currently offlinerichardw From United Kingdom, joined May 2001, 3759 posts, RR: 0
Reply 24, posted (4 years 7 months 3 weeks 3 days 3 hours ago) and read 4927 times:

Will be interesting if the merger completes though.

25 Sketty222 : The liveries will stay the same! The two airlines will still operate as seperate enitities but be owned by a holding company called International Air
26 FatmirJusufi : They will keep their current liveries. This agreement is just like AF/KL merger.
27 gemuser : How come? Gemuser
28 Jacobin777 : I spoke with senior BA management (executive level) a few months ago regarding the merger. IB"s Chair will basically be a "figure head" and it will be
29 talaier : Well it is Spanish company after all, so if there's a takeover bid for example it would be placed in the Madrid SE and channelled through the Spanish
30 Post contains images gemuser : Is it? BA have agreed to the holding company being a Spanish company? Gemuser
31 talaier : Lol. Well, BA and IB are still separate entities (so that they can keep their bi-laterals) but the holding that pools in all shareholders is indeed a
32 PRAirbus : Hallelujah!!! It was about time!!! Now, who will AA go to bed with in case UA/US takes shape??? Hopefully BA/IB synergies will stimulate AA's growth i
33 Post contains links and images talaier : Some more news from the merger. Willie Walsh in a conference in Kenya hinting at new services to African destinations from Spain (in Spanish): http://
34 timboflier215 : The holding company will be incorporated in Madrid, so I am guessing that their offices will be also? However, I think BA shareholders will hold the
35 talaier : HQ in Madrid, operating offices in London. In other words, shareholder meetings, taxes and official stuff in Spain, day-to-day stuff in London with W
36 GSTBA : That is interesting. There is very few direct flights from Spain to Africa. I know of MAD-LOS and thats about it. MAD to CPT, JNB and NBO would proba
37 OP3000 : There's a unique market there, particularly within oneworld. They currently fly to SSG (1x a week) and DKR, besides LOS and JNB.[Edited 2010-04-14 14
38 talaier : Malabo is actually 5 weekly, Dakar is daily, LOS 3 weekly and JNB 5/6 weekly.
39 baexecutive : The combined 'International Airlines Group' will be the third largest airline holding company in the world by revenue with 419 aircraft serving 200 d
40 vv701 : Incorporation may mean everything or nothing. For example Air Berlin is incorporated in England. Its (small) registered office is in Rickmamsworth, H
41 PM : Thank you.
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
BA-IB Merger Fleet Consequences posted Wed Nov 18 2009 05:00:19 by NA
BA - IB Merger: What's In Store For LGW? posted Tue Nov 17 2009 20:32:51 by Aircellist
BA/IB Merger Delay posted Wed May 13 2009 10:25:18 by BeyondBristol
Irish BA Operations Come To An End Today posted Fri Mar 27 2009 17:39:57 by AmricanShamrok
Real Progress In BA/IB Merger Talks posted Thu Mar 5 2009 16:59:53 by VV701
BA Expects ATI To Be Approved By This Summer posted Thu Feb 12 2009 16:00:50 by LAXdude1023
BA/IB Merger, More Clickvue At LGW? posted Sun Aug 3 2008 04:07:15 by Richardw
Here It Comes: AA/BA/IB Likely To Seek ATI posted Wed Jul 2 2008 17:42:53 by Commavia
New Oneworld Member Elect To Be Unveiled Today: MX posted Wed Apr 9 2008 05:11:52 by AJMIA
Passur Doesn't Seem To Be Working Today... posted Wed Sep 26 2007 22:53:28 by Ordpark