dme
Posts: 92
Joined: Wed Mar 17, 2004 11:10 pm

BA & IB. Which The Future Will Be?.

Mon Apr 24, 2006 10:22 pm

According to the Spanish finnancial newspaper 'Expansion' (in Spanish, http://www.expansion.com/edicion/exp...presas/es/desarrollo/641243.html), the executive committes of British Airways and Iberia held a meeting in Madrid fifteen days ago. Since the last meeting was held in 2003, do you think there will be any news about the future strategy of both companies?.

My best regards,
Dme.

Pd. See also my post "http://www.airliners.net/discussions/general_aviation/read.main/2696915".
 
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OzarkD9S
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Joined: Tue Oct 23, 2001 2:31 am

RE: BA & IB. Which The Future Will Be?.

Mon Apr 24, 2006 10:45 pm

It's possible they'll do a deal similar to AF/KL. BA was on/off on a KL deal themselves a couple of times. Consolidation among the Euro-Legacies is going to happen.
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trekster
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RE: BA & IB. Which The Future Will Be?.

Mon Apr 24, 2006 11:01 pm

I dont see that happening. BA/IB have just canx a very good codeshare route to VLC, BA used them, but now for some reason its gone, as have a few other routes. If BA were going into partnership, do you not think they would have kept them
Anyway, IB need to really revamp service if they were going to partner with BA, customer service especially, and change the euro product

[Edited 2006-04-24 16:04:49]
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Iberia340600
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RE: BA & IB. Which The Future Will Be?.

Mon Apr 24, 2006 11:07 pm

DME....I dont think its a matter of "if" but "when" it will happen. The fact that their is a race to consolidation in Europe is quite visible. I believe IB and BA are looking to see how this is working for AF/KL and at the same time waiting to see what is going to happen with the open skies protocol. I give it maybe 1-2 years before we see some kind of announcement come forward.
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BA380
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RE: BA & IB. Which The Future Will Be?.

Mon Apr 24, 2006 11:10 pm

I would have thought this, or a similar deal, is inevitable.

BA, following the AF/KL tie-up and the LH/Swiss merger, will need to do similar to keep up with synergies. Whether it is with IB, or indeed with Aer Lingus, Finnair or others, will probably happen.

IB would appear to be a good fit geographically, whereas Aer Lingus would be more limited.
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foxdelta
Posts: 113
Joined: Tue Jun 08, 2004 6:11 am

RE: BA & IB. Which The Future Will Be?.

Mon Apr 24, 2006 11:56 pm

Quoting Trekster (Reply 2):
BA/IB have just canx a very good codeshare route to VLC

BA (via GB Airways) comes back to VLC from LGW as we speak, while IB will again fly VLC-LHR-VLC as of May 1st mainly due to pressure from Valencia Gov't and the business community.

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tcxdegsy
Posts: 356
Joined: Sun Jan 29, 2006 2:47 am

RE: BA & IB. Which The Future Will Be?.

Tue Apr 25, 2006 7:19 am

I read a report somewhere over the past couple of days, may even have been here, about Iberia. Said it was in a healthy position, and that any buy-out would take the buyer 6 years to cover the cost of the outlay.

BA, as a comparison, would take a buyer 8 years to pay off the capital outlay.

Maybe BA dropped the codeshare to pave the way for a merger?
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767-332ER
Posts: 1974
Joined: Sun Mar 18, 2001 1:20 pm

RE: BA & IB. Which The Future Will Be?.

Tue Apr 25, 2006 12:23 pm

What sort of government restrictions might exist between the Spanish and British government from allowing this to happen? IB has been privatised for almost ten years now, but BA still is under some control by the government, correct?

Also, if anyone could possibly list the advantages to such "merger." I understand that KL is substantially smaller than IB, so therefore it made it easier for AF to 'incorporate" them into the fleet. KL's fleet type (consistent with AF's), KL's route structure, mostly international (outside of Europe) to increase the AF international dominance...etc.
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scotron11
Posts: 1181
Joined: Tue Feb 10, 2004 4:54 pm

RE: BA & IB. Which The Future Will Be?.

Tue Apr 25, 2006 2:00 pm

Quoting 767-332ER (Reply 7):

IB has been privatised for almost ten years now, but BA still is under some control by the government, correct?

The UK government has no control of BA whatsoever.

BA have ruled out any direct merger with IB for the foreseeable future and are happy to continue with their present investment.

I do believe that once OpenSkies with the US becomes reality, if, then the dynamic will change. Remember, at one point BA had a 25% stake in QF, which they sold last year.

Then again, maybe they don't have the money. Or they could be taken over themselves!

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