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British Airways/KLM Merger! What Do U Think?

Wed Jun 07, 2000 5:49 pm

Well it's official, hot on the heals of UA/US, British Airways and KLM Royal Dutch Airlines have confirmed that they are in merger talks.

What I am interested in is what people think will happen to KLMuk, Go, Buzz, BASE, Wings, oneworld, American, Northwest etc etc?

Will the new company be called "British Airways"? It would be a shame to lose the KLM name or for that matter the British Airways name if the decide a new image is needed for the merged airline. Hmmm...BAKLM or KLMBA?? Maybe!

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Photo © Josh Rawlin

(sorry about using BA's old colours, but i couldnt find another photo with KLM in it)

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RE: British Airways/KLM Merger! What Do U Think?

Wed Jun 07, 2000 5:56 pm

I think they do the same as SR and SN did and keep their names, brands and identities.
The most interesting question will be the american partner. If AA buys NW there will be no problem (besides antitrust immunity), if not, NW stays perhaps with BA/KLM and AA goes strong with Qualiflyer????
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RE: British Airways/KLM Merger! What Do U Think?

Wed Jun 07, 2000 6:02 pm

Identities and names will stay (I hope so).

But with the NAmerican partner airline I'm still not sure. I think that BA/KLM will stay with NW, if AA doesn't buy NW!
But if AA goes together with NW, then KLM/BA will have to move to Continental/America West and the new AA will leave Oneworld and will join Qualiflyer.
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RE: British Airways/KLM Merger! What Do U Think?

Wed Jun 07, 2000 8:46 pm

I think BA are taliking about a take over rather than a merger, this will mean both companies will keep their own identity, but they will have one managment team (although it will be larger), therefore cutting costs at the top end of the company hierachy.

hopefully, the type of service will be standardised, i.e. I Hhope KLMs service will match that of BA, lets face it the KLM service isn't anything special.

As for the alliences, code share agreements etc. We will see BA and AA and the one world alliance, then KLM, NW and their parters alll combined into one. The whole company would need a big rethink into the way it is run. Maybe a whole merger of BA, AA, NW and KLM would be the best with huns in AMS ans LHR!

It's very complicated!

RE: British Airways/KLM Merger! What Do U Think?

Wed Jun 07, 2000 9:03 pm

If it goes through, it will mean a lot of layoffs as the two companies struggle financially this year...

It could be a good deal for BA to use Schiphol as a hub to alleviate LHR, but Schiphol has nearly reached its maximum allowed capacity (they could handle more flights but they won't be allowed for environmental reasons).

It could also speed up some other airlines to do something...Alitalia, Iberia etc...I'd like Iberia and Air France closer together, with BA dumping its participation in Iberia...


RE: British Airways/KLM Merger! What Do U Think?

Wed Jun 07, 2000 9:19 pm

The one thing that is annoying me the most is that probably, Buxx, KLMUK and Go will have to become one airline. There is no sense in having those three competing with each other if it is one company, is there? And after that, there's only Ryanair and Easyjet left (Virgin Express is Brussels-centered, so not very active in the UK). I liked the variety of low-cost airlines. Too bad BA will eventually either ruin them through Go or eat them up.....

That is my opinion, based purely on estimations and not on any official documents I could quote.
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RE: British Airways/KLM Merger! What Do U Think?

Wed Jun 07, 2000 9:22 pm

It will mean that the new company will control most of the AMS services from non-London airports in the UK. Is there a monopoly situation developing on these routes? Thanks to BA, through GO taking over some of the Stansted routes, AirUK (now KLMuk) abandoned their STN routes and concentrated on feeding into KLM at AMS. I am concerned that these AMS links will now go and the so called "regional" airports in the UK will lose their direct links with AMS, with everything channeled via LHR or LGW.
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RE: British Airways/KLM Merger! What Do U Think?

Thu Jun 08, 2000 6:20 am

As I have a blue (KLM) heart, I think it would be a pity if KLM was taken over. It really hurts when some large foreign company buys your original dutch one. I know I'm a real chauvinist.

If KLM is taken over, I am quite sure that the UK activities (KLMuk) have to be sold due to anti-trust. This also means that Buzz gets in other hands as it is a KLMuk daughter.

I know KLM has to find a European partner and it's a pity that it didn't work out with Alitalia. KLM was so much stronger a few years ago, but now they're continiously fighting losses. In the past they had the (financial) capability to take over Northwest. They should've done that immediately. Now it's too late and KLM is a pray due to its own ego of not willing to cooperate, when it had the chance.
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RE: British Airways/KLM Merger! What Do U Think?

Thu Jun 08, 2000 6:33 am

I don't think KLM/BA would be so quick to run into the Continental camp. Continental and KLM don't really get along, and don't as of yet acknowledge or act towards each other as partners. The only thing linking KLM and CO is NW. Continental doesn't even code-share NW's service into Amsterdam.

In addition Continental has already paired up with Virgin and British Midland to some extent, so I don't see CO and BA hooking up anytime soon.

Continental is weird... they've got partners who are entrenched with other alliances (BD, Air France, Alaska/Horizon in particular).

Honestly, I don't think AA/NW is serious... NW already rebuffed them and seem more committed to maintaining the CO/NW/AS relationship than ever, the latest press releases are indicating that they are expanding those code shares.

Not sure what's going in with CO and AS though (check my post "Continental's Codeshares" from Tuesday).

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