kl911
Posts: 3981
Joined: Mon Jul 21, 2003 1:10 am

US Airlines Taken Over By European Airlines.....

Wed Apr 21, 2004 8:40 am

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]
 
AUAE
Posts: 292
Joined: Fri Apr 09, 2004 4:41 am

RE: US Airlines Taken Over By EU Airlines.....

Wed Apr 21, 2004 8:42 am

AF takes over DL...gets my vote.

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

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StevenUhl777
Posts: 3281
Joined: Sun Jul 08, 2001 11:02 am

RE: US Airlines Taken Over By European Airlines.....

Wed Apr 21, 2004 11:52 am

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.

And the winner for best actress is....REESE WITHERSPOON for 'Walk the Line'!!!!!!!!
 
ltbewr
Posts: 12503
Joined: Thu Jan 29, 2004 1:24 pm

RE: US Airlines Taken Over By European Airlines.....

Wed Apr 21, 2004 12:14 pm

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)
 
gigneil
Posts: 14133
Joined: Fri Nov 08, 2002 10:25 am

RE: US Airlines Taken Over By European Airlines.....

Wed Apr 21, 2004 12:16 pm

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.
 
airways6max
Posts: 474
Joined: Sat Aug 09, 2003 6:22 am

RE: US Airlines Taken Over By European Airlines.....

Wed Apr 21, 2004 12:19 pm

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.
 
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Cadmus
Posts: 173
Joined: Thu Jan 22, 2004 6:47 am

RE: US Airlines Taken Over By European Airlines.....

Wed Apr 21, 2004 4:56 pm

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
 
GSPSPOT
Posts: 2270
Joined: Thu Sep 11, 2003 1:44 am

RE: US Airlines Taken Over By European Airlines.....

Wed Apr 21, 2004 8:54 pm

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!
 
ScandinA340
Posts: 74
Joined: Tue Apr 06, 2004 12:01 pm

RE: US Airlines Taken Over By European Airlines.....

Wed Apr 21, 2004 9:13 pm

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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