scotron11
Posts: 1181
Joined: Tue Feb 10, 2004 4:54 pm

BA & IB Link Up On Flights

Thu Dec 16, 2004 10:39 pm

BA & IB are combining their operations between LHR - MAD/BCN and will share all revenue and profits on both routes. The venture will come into effect Jan 01.

The two airlines have received antitrust immunity from the EU which allows them to "collude" legally.

Together they hold about 50% of the market from London to MAD/BCN with competition coming from BMI, Easyjet and Ryanair.

Maybe a "full merger" could be in the works.
 
richardw
Posts: 3131
Joined: Tue May 08, 2001 3:17 am

RE: BA & IB Link Up On Flights

Thu Dec 16, 2004 10:56 pm

The codeshare on these route has been with us for a while now, does this now go further than just buying an allocation on each other's flights?
 
Billy
Posts: 890
Joined: Sun Jul 23, 2000 11:18 pm

RE: BA & IB Link Up On Flights

Fri Dec 17, 2004 12:00 am

The route becomes a joint venture between the two carriers. This is very much what happens between OSL, ARN and CPH to FRA between LH and SAS. So much for competition - this used to be called pooling until it was deemed illegal.
 
richardw
Posts: 3131
Joined: Tue May 08, 2001 3:17 am

RE: BA & IB Link Up On Flights

Fri Dec 17, 2004 12:30 am

So this means the price will be the same whichever airline's website you book through and the current allocation system will go, so they must be setting up a clever bit of software to handle this.