sndp
Posts: 534
Joined: Fri Feb 18, 2000 6:07 pm

BA-KLM/Swissair

Mon Aug 21, 2000 4:00 pm

Insiders had already noticed that BA and Swissair were coming very close to each other. Swissair made agreements with some BA partners, being AA and JAL, and even tried to set up some code share agreements between Brussels (SR daughter Sabena) and the UK and Zurich and the UK but these talks never became a succes.
Now it is said that SR is again talking with BA about a full merger. What should BA do? They are already a long time talking with KLM and an agreement doesn't seem to be very far. KLM operates the Schiphol hub which is closer to London than Zurich and KLM has got a lot more passengers than SR.
On the other hand, Swissair has got a lot of European partners, bigger than the KLM partners, and has an agreement with AA, an important partner of BA. Do you see BA going with Northwest, a partner KLM won't drop according to me.
So, what do you think will happen. What are the advantages for BA when choosing KLM and when SR? What will KLM have to do if SR goes with BA?
One little notice to end: at the end of the eighties, BA, KLM and Sabena, Belgium carrier and now more than 80% owned by SR, tried to form an alliance but they didn't succeed. Will history repeat itself?
sndp
 
Guest

RE: BA-KLM/Swissair

Mon Aug 21, 2000 7:39 pm

As a BA employee i am watching with vested interest into what the outcome will be. We all seemed to accept the BA/KL marriage as a done deal, but this has really thrown a spanner in the works!! Personally (although nothing against KLM as an airline) I think Swissair would be the better match.

Swissair would bring with it a large European, African and Asian network, but equally important will be SR's partners that would most likely come too. Sabena (Brussels being a suitable alternative to losing AMS), Crossair (which BA already codeshares with between LHR and BSL) and also alliance airlines like TAP, LOT, AOM/Air Liberte/Air Littoral, Air Europe/Volare. Also SR has an investment in SAA (although BA's franchise agreement with Comair may complicate things)

Also Swissair would fit perfectly into oneworld - it already is a major partner for American Airlines (meaning BA doesnt have to dump AA for NW - not a popular decision), Cathay Pacific and Qantas.

The problems with KLM are that it basically is bringing a lot of connecting traffic not alot of base market to the equation. AMS is a great airport but so is ZRH, and BRU is geographically on par with Schipol. The biggest hurdle though will be Northwest vs American. BA although troubled by the lack of anti-trust immunity and lack of codeshares (i believe) still favours AA above NW. AA's hubs are already BA destinations, whereas BA does not fly to Memphis, Minneapoles and only 1 daily flight to DTW. BA does fly extensively to ORD, MIA, DFW, JFK, BOS & LAX - all AA fortresses, and AA serves Heathrow.

So it's early days yet but my money is on BA/SR.
 
ZRH
Posts: 4371
Joined: Tue Nov 16, 1999 11:32 pm

RE: BA-KLM/Swissair

Mon Aug 21, 2000 9:33 pm

It is very interesting what will happen. BA/SR is good deal, but I think it won't be a completly merger.
In Teletext of Swiss TV DRS I read yesterday that a Swissair representative denied talks with BA. True or only tactics?
 
sn330
Posts: 606
Joined: Wed Nov 03, 2004 7:01 pm

RE: BA-KLM/Swissair

Tue Aug 22, 2000 6:57 am

I agree with XQF's statements about Swissair/Sabena/Qualiflyer being a better match for BA than KLM. Although Swissair itself is about the same size as KLM, it leads an alliance with major airlines lik TAP Air Portugal, Turkish Airlines, LOT, and Air Littoral. Also, Brussels is so close to London that I read that Sabena had given up the BRU-LHR route, and now codeshares on flights operated by Virgin Express.
Also, if they were to merge, it would give oneworld a great Eastern European partner in LOT, the most modern (equipment wise) of any of the former communist Eastern European countries' flag carriers. I would love to see SR, BA, SN, and Qualiflyer merge. Then the Star Alliance and Skyteam would have some huge competition.
 
747firstclass
Posts: 821
Joined: Tue Mar 28, 2000 2:45 pm

RE: BA-KLM/Swissair

Tue Aug 22, 2000 9:55 am

If there was problems with the regulators regarding BA/AA mainly slots at LHR, who in their right right mind would think that BA/AA/SR would get approval any quicker or with less problems? Would someone please explain how it would be approved? We would still have the problems with all the overlaps of USA routes with BA and AA. Only way out of this mess would be for the UK to agreee immediately to an openskies agreement. And i mean like today. that could take some of the problems with the regulators away. Its just amazing how BA can play these games over and over again and get nowhere.

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