Excellent news for JL who have emerged from bankrupcy and good news for BA who are struggling with their fuel costs.
As this joint venture is going to start March 2013 could we see route such as LHR-KIX being operated within this venture using the slots from BD? I guess we have to wait until BD has been fully integrated into BA.
VV701 From United Kingdom, joined Aug 2005, 8289 posts, RR: 24
Reply 3, posted (3 years 4 months 1 week 5 days 1 hour ago) and read 5409 times:
Quoting Talaier (Reply 1): Remember BA as a company doesn´t exist anymore.
BA is a subsidiary company of International Consolidated Airlines Group.
And this new ATI agreement does not cover all of IAG but is just covers BA and JL operations. Here is what the report actually says:
"IAG, formed by the merger of BA and Iberia, on Friday said the Japanese Ministry of Land, Infrastructure, Transport and Tourism (MLIT) had formally approved Japan Airlines' application seeking anti-trust immunity to co-operate on flights with British Airways (BA)."
If you are interested in the corporate structure of IAG look at Chart 63 here:
Note that in this chart IAG has 100 per cent economic control of both BA and IB. However what is described in the chart as the "UK NCC" and the "Spanish NCC", both of which are local companies not owned by IAG, have 50.1 per cent operational control of BA and IB respectively.
IAG corporate structure is necessarily as complex as this as BA has to be in some way British owned and IB Spanish owned for both of them to continue to operate flights authorised by bilateral air service agreements signed respectively by the British and Spanish governments.
Existing bilateral agreements nearly always specify that the routes covered by the agreement can only be operated by airlines from the two countries whose governments are signatories to that agreement. An individual agreement may also limit both the number of airlines and the number of flights that they can operate.
For example there is no Air Service Agreement between the EU and the Singapore Government or with the government of the Russian Federation. So BA would not be allowed to operate to Singapore and neither BA or IB could operate to Moscow if they were not operationally separate, locally owned subsidiary companies of IAG. Similarly the 1995 Joint Services Agreement between BA and QF on the Kangaroo route between Europe and Australia would no longer be valid.