jimyvr
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Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 2:29 pm

http://www.euro2day.gr/articlesfna/24745002/

Unhappy Iberia may terminate BA tie-up

Quote:
By FT Reporters
Published: 29/11/2006 | Last Updated: 30/11/2006 02:16 London Time

Iberia opened the door to an alliance with Air France-KLM or Germany's Lufthansa on Wednesday amid unhappiness with its relationship with British Airways, which owns 10 per cent of the Spanish flag-carrier.

Enrique Dupuy, Iberia's chief financial officer, said in an interview with Expansión, the Financial Times' Spanish partner paper, that BA had not made Iberia one of its first priorities.
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commavia
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 2:33 pm

Any disatisfaction among Iberia management with BA notwithstanding, I highly doubt that you're going to see Iberia leave oneworld, as the alliance is not just those two airlines. Leaving oneworld would almost certainly mean leaving its alliance with American, which is immensely important to Iberia -- particularly since they closed their Miami hub -- and potentially too with LAN, another very important alliance for Iberia's brand in South America.

Iberia and BA may well work out this alliance, or, ultimately, this could be a ploy on the part of Iberia to essentially whine and complain to force BA into negotiations on more seriously deepening the alliance (i.e., closer operational/backroom integration, or even full-blown merger). After all, Iberia seems not to be complaining about BA meddling too much in their affairs, but seemingly because BA is not involved enough with making their respective alliance their "first priority."

Interesting speculation, but I personally doubt it will amount to much long-term.
 
planemanofnz
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 2:47 pm

Why don't IB codeshare with QF or CX?
 
helvknight
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 3:05 pm

If Iberia wanted to join *A wouldn't Spanair have a veto?
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jimyvr
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 3:12 pm

Quoting Planemanofnz (Reply 2):
Why don't IB codeshare with QF or CX?

It codeshares with CX.
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lovinitflyboy
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 3:45 pm

Just what Star needs, another European carrier to add to the 8 they already have!
 
Iberia340600
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 3:53 pm

Jimyvr:

Please change the title of this thread as it is quite misleading. Iberia is not considering leaving oneworld....I REPEAT...IBERIA IS NOT CONSIDERING leaving oneworld.

The article is simply about the strategic alliance that Iberia has with BA and the fact that IB is not too happy with the way things are going(given that with BA's 10% stake they have 2 seats on the shareholders board of directors).
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jacobin777
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 3:56 pm

Quoting Commavia (Reply 1):
After all, Iberia seems not to be complaining about BA meddling too much in their affairs, but seemingly because BA is not involved enough with making their respective alliance their "first priority."

BA does have a stake in IB (in fact, BA just purchased AA's share also) and is on their advisory board..maybe that has something to do with it...


edit:looks like Iberia340600 pipped me to the post...

Cheers..

[Edited 2006-11-30 08:18:36]
"Up the Irons!"
 
jimyvr
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 4:04 pm

Quoting Iberia340600 (Reply 6):
Jimyvr:

Please change the title of this thread as it is quite misleading. Iberia is not considering leaving oneworld....I REPEAT...IBERIA IS NOT CONSIDERING leaving oneworld.

Read the first paragraph again.

...Iberia opened the door to an alliance with Air France-KLM or Germany's Lufthansa on Wednesday amid unhappiness with its relationship with British Airways, which owns 10 per cent of the Spanish flag-carrier...

If IBERIA opt for an alliance with Air France-KLM or Lufthansa, you think they'll stick with oneWorld?
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Iberia340600
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 4:10 pm

Quoting Jimyvr (Reply 8):
Read the first paragraph again.

...Iberia opened the door to an alliance with Air France-KLM or Germany's Lufthansa on Wednesday amid unhappiness with its relationship with British Airways, which owns 10 per cent of the Spanish flag-carrier...

If IBERIA opt for an alliance with Air France-KLM or Lufthansa, you think they'll stick with oneWorld?

Jim....what is at stake here is not IB choosing a new alliance....the type of alliance that IB is looking at is in the future to consolidate with another airline like AF-KLM has done.

Its hard to say what the future will bring...but at this time it is a pure strategic decision as far as who holds capital in IB...and not a decision to switch from oneworld to Star or Skyteam.
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DL WIDGET HEAD
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 5:12 pm

Quoting Iberia340600 (Reply 9):
Jim....what is at stake here is not IB choosing a new alliance....the type of alliance that IB is looking at is in the future to consolidate with another airline like AF-KLM has done.

That would be a merger.

I believe this article is talking about IB switching global alliances and not a merger.
 
QXatFAT
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 5:25 pm

What would IB loose out on if they left OneWorld and joined SkyTeam? They would pick up a strong CO for the United States so it would compinsate for the AA loss and they will pick up a Central American carrier as well in AM. I think it wouldnt be that bad of an idea. The only thing I would see is that SkyTeam has a few more European carriers.
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UAL777UK
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 5:33 pm

THis would be a kick in the teeth for BA but I really dont see anything coming of it, BA would surely smooth any cracks over with IB if they were really going to jump ship.........maybe its designed as a wake up call at BA...who knows.
If they do jump, I would be very surprised to seem them at *A, what with all the European carriers thet have, not least TAP next door!
 
AlitaliaMD11
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 9:03 pm

That might be a bad move considering their great connections they have with American, however they could still probably keep them.

I wonder if this would mean that the One World carriers would have to move out of Terminal 4?
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AirbusA6
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 10:54 pm

Quoting Jimyvr (Thread starter):
Enrique Dupuy, Iberia's chief financial officer, said in an interview with Expansión, the Financial Times' Spanish partner paper, that BA had not made Iberia one of its first priorities.

"It's not fair, you never buy me presents, take me anywhere or ask my opinions. You spend all your time with your American, Hong Kong and Australian friends and IT'S NOT FAIR!!!"
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commavia
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 10:59 pm

Quoting QXatFAT (Reply 11):
What would IB loose out on if they left OneWorld and joined SkyTeam?

Close relationships with some of the most important airlines in the world, especially in Latin America, Iberia's focus.

Quoting QXatFAT (Reply 11):
They would pick up a strong CO for the United States so it would compinsate for the AA loss and they will pick up a Central American carrier as well in AM.

Continental doesn't even come close to "compensat[ing] for the AA loss." AA is dramatically larger than Continental to Latin American and provides Iberia with massive amounts of feed that Continental could never match unless Iberia started flying to Continental's Newark and Houston hubs, and even then, it would not come close to the amount of feed American can provide through JFK but especially Miami.
 
JJJ
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 11:31 pm

Quoting UAL777UK (Reply 12):
If they do jump, I would be very surprised to seem them at *A, what with all the European carriers thet have, not least TAP next door!

Well, Spanair is even closer Big grin
 
jimyvr
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 11:32 pm

Quoting Iberia340600 (Reply 9):
Jim....what is at stake here is not IB choosing a new alliance....the type of alliance that IB is looking at is in the future to consolidate with another airline like AF-KLM has done.

For some reason I think you're still not getting it.

For instance if they opt to consolidate with AF-KLM, do you really think AF-KLM will let IBERIA stay in oneWorld?
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pilot21
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RE: Iberia Considers Move To Star Or Skyteam

Thu Nov 30, 2006 11:40 pm

Quoting Jimyvr (Thread starter):
Enrique Dupuy, Iberia's chief financial officer, said in an interview with Expansión, the Financial Times' Spanish partner paper, that BA had not made Iberia one of its first priorities.

Regardless of whether or not IB and BA Mgt are talking, doesn't BA feed a huge amount of Latin American Traffic into IB's network? BA have almost stopped flying to South America and instead have focused on giving IB all that traffic via MAD, so while IB Mgt may not be happy with the relationship, my guess from a $$ point of view is that the relationship is very beneficial.

Moving away from BA and trying to cosy up to AF and KL whom both have strong Latin American networks is kind of shooting yourself in the foot in my view.
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PDPsol
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RE: Iberia Considers Move To Star Or Skyteam

Fri Dec 01, 2006 12:19 am

Quoting AirbusA6 (Reply 14):
"It's not fair, you never buy me presents, take me anywhere or ask my opinions. You spend all your time with your American, Hong Kong and Australian friends and IT'S NOT FAIR!!!"

This, I suspect, is the best characterization of what IB's true complaint is. Nonetheless, IB should be lauded in this public expression of discontent if it truly believes the statement serves its commercial and financial interests.

If IB believes its partner is not fully maximizing the potential value of its alliance, then it should do everything it can to do so. IB is KEENLY focused on financial performance and returns to shareholders. If anything, BA should welcome the opportunity to enhance the value of its 10% stake in IB! BTW, BA's interest is currently worth EUR 250 million or USD 325 million!
 
JAL
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RE: Iberia Considers Move To Star Or Skyteam

Fri Dec 01, 2006 1:11 am

Would make no sense for Iberia to defect to Star or Star, OneWorld members feed huge traffic to Iberia's Latin America routes.
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BA787
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RE: Iberia Considers Move To Star Or Skyteam

Fri Dec 01, 2006 5:53 am

Won't happen, as other people have said no matter how unhappy they become with BA, IB has too many valuable links with AA and LAN to ever contemplate leaving oneworld. Also IB and BA merger makes sense really, both companies would complement each other well!!

 Wink
 
aircanada014
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RE: Iberia Considers Move To Star Or Skyteam

Fri Dec 01, 2006 6:55 am

Quoting Iberia340600 (Reply 6):
Please change the title of this thread as it is quite misleading. Iberia is not considering leaving oneworld....I REPEAT...IBERIA IS NOT CONSIDERING leaving oneworld.

If IBERIA is looking for a new Alliance then yes it would considering leaving Oneworld. Don't forget MX split up with UA cause its not in their interest so they did end up leaving Star Alliance.. You need to read between the lines.
You're not reading it right.
 
jfk777
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RE: Iberia Considers Move To Star Or Skyteam

Fri Dec 01, 2006 7:57 am

Iberia is a unique property in Europe since it owns travel to all corner of Latin America including nonstop A340 service to such corners as Montevideo and Lima. Air France is probably second among European airlines with nonstops to Bogota, Caracas, Santiago as well as the usual Sao Paulo and Buenos Aires. British Airways flies only to Mexico City and Sao Paulo with an extension to Argentina's Capitol, so it is a niche player. Alitalia is strong to Brazil, Caracas and Argentina. Lufthansa is third among Europeans with large operations to Brazil with Star alliance partner Varig.

Skyteam with Air France, KLM & Alitalia really has all the major corners covered so Iberia wouldn't bring too much more coverage unless Costa Rica and Panama are needed. Star only has Varig, a declining airline, so Iberia and Star would be interesting. ONEWORLD has Lan, AA and Iberia so loosing IB would cost them dearly....NOT going to happen.
 
Bicoastal
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RE: Iberia Considers Move To Star Or Skyteam

Fri Dec 01, 2006 9:00 am

Quoting Jfk777 (Reply 23):
with large operations to Brazil with Star alliance partner Varig

Varig? Who/What? Most, if not, all Star Alliance carriers put their relationship with what's left of Varig on hold. No codeshares, no honoring Varig tickets, etc. They don't book on Varig for onward connections, either.
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JAL
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RE: Iberia Considers Move To Star Or Skyteam

Fri Dec 01, 2006 9:51 am

Iberia's chairman just knock down talks of switching alliance!
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PRAirbus
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RE: Iberia Considers Move To Star Or Skyteam

Fri Dec 01, 2006 10:19 pm

According to ATW Daily News there is no thruth to such a rumor...especially when BA is a shareholder in IB.
 
CHRISBA777ER
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RE: Iberia Considers Move To Star Or Skyteam

Fri Dec 01, 2006 10:32 pm

Id love to see what they are basing this on. As mentioned elsewhere in another thread - ive done a fairly far-reaching and important piece of research and analysis on it and trust me, things are progressing fine.
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