Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
BA Relaxes Foreign Ownership Rules  
User currently offlineSingapore_Air From United Kingdom, joined Nov 2000, 13742 posts, RR: 19
Posted (13 years 2 months 3 weeks 5 days 14 hours ago) and read 920 times:

Well we're all opening up aren't we!

I wonder if Branson wants a piece of it?

0-------
BA opens door to foreign tie-up

by Matthew Fletcher, Mail on Sunday

BRITISH airways is to relax its rules on foreign ownership of its shares – clearing the way for a deal with a European partner.

BA will next month ask shareholders for permission to allow the airline to be majority-owned by investors within the EU. It has taken the decision ahead of the conclusion, expected next year, of a court case in the European Court of Justice that could give the European commission the right to negotiate vital aviation agreements on behalf of member states. If the EC wins, BA may have to get backing from Brussels rather than Westminster‘s to form an alliance w ith American Airlines, its preferred partner.

The move will be seen as the latest sign of chief executive Rod Eddington‘s determination to strike a deal with another airline, even if this means diluting its British ownership. Changing the ownership structure would ease the way for a merger with Dutch carrier KLM.

Eddington thinks European airlines may have to give up their flag-carrier status to speed consolidation and compete better globally. But his move will surprise observers who thought he wanted to trade on BA‘s Britishness.

In the short term, BA Expects to stay at least 50% British-owned – meaning it will still be covered by existing aviation rights negotiated by the Government. But it faces having to negotiate with Brussels for the right to fly worldwide if the EC wins its case to take over pan-European aviation. The EC is suing eight countries that insist they can sign bilateral ‘open skies‘ agreements with the US.

© Associated Newspapers Ltd., 24 June 2001



Anyone can fly, only the best Soar.
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...
Is It Time To Lift Foreign Ownership Limits? posted Sat Feb 2 2008 17:48:03 by EvilForce
Foreign Ownership Policy - Protectionist? posted Fri Feb 9 2007 14:32:06 by LHRBlueSkies
ONEWorld BA AA & Mileage Rules Trans Atlantic posted Mon Dec 11 2006 02:24:56 by 707437
Lufthansa Foreign Ownership Over 45 % posted Sat Nov 25 2006 09:40:21 by Columba
AK/KL Foreign Ownership Reached 47% posted Wed Nov 15 2006 20:25:42 by Goldorak
IATA's CEO: Liberalize Foreign Ownership posted Tue Sep 19 2006 08:52:06 by Centrair
The Purpose Of Foreign Ownership Laws posted Fri Jun 9 2006 14:29:28 by MaartenV
Foreign Ownership/Open Skys Bill On Way To Pres posted Thu Jun 8 2006 14:19:39 by Lowecur
Forbes Article On Foreign Ownership posted Fri Jan 27 2006 15:56:59 by BigGSFO
New Zealand Relaxes Aviation Security Rules posted Fri Sep 30 2005 12:43:19 by 777ER