asuflyer05
Posts: 2054
Joined: Wed Feb 25, 2004 8:53 am

AA/BA Merger Potential

Thu Oct 18, 2007 8:31 am

Reuters is reporting BA is looking into a possible merger with AA.

Quote:
"American Airlines is a key partner for us and in the long term we would like a closer relationship with them," a BA spokesman told Reuters in response to the report.

http://www.reuters.com/article/marketsNews/idUKL1844290320071018?rpc=44
 
B747forever
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Joined: Mon May 21, 2007 9:50 pm

RE: AA/BA Merger Potential

Thu Oct 18, 2007 8:33 am

This is a really good strategy for both AA and BA. then they can compete better against AF/DL.

I can see this happen in the near future.
Work Hard, Fly Right
 
UAL777UK
Posts: 2133
Joined: Sun Nov 20, 2005 1:16 am

RE: AA/BA Merger Potential

Thu Oct 18, 2007 8:35 am

I know you should never say never but I doubt they would be able to get there hands on BD, firstly because of DOT hurdles and of course I am sure a certain airline like LH would have a say in the matter as well!
I wonder if they do pursue the tie up with AA what is the likely amount of slots they might have to reliquish at LHR as a result of that??
Very interesting times ahead!
 
ha763
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RE: AA/BA Merger Potential

Thu Oct 18, 2007 8:44 am

Sounds more like reapplying for anti-trust immunity. Quote from the article

Quote:
It also said that BA was considering a renewed attempt to merge with American Airlines (AMR.N: Quote, Profile, Research), despite two previous attempts being struck down by competition regulators.

BA and AA applied twice for anti-trust immunity, which were both denied.
 
ANother
Posts: 1833
Joined: Thu Nov 03, 2005 2:47 am

RE: AA/BA Merger Potential

Thu Oct 18, 2007 9:17 am

Quoting Asuflyer05 (Thread starter):
Reuters is reporting BA is looking into a possible merger with AA.

A merger would not be legal under US law. US airlines must substantially owned and effectively controlled by US citizens. Also CEO and majority of Board members must be US citizens.

Similar topics:
AA/BA Merger? posted Mon Jan 28 2002 06:41:41 by Jiml1126
AA And BA Merger? posted Sat Oct 16 2004 10:29:22 by Aa777jr
AA + BA? Is A Merger In The Works? posted Wed Dec 19 2001 04:53:18 by Airlinelover
AA-BA Codeshare Expanding? posted Thu May 24 2007 06:32:37 by ElmoTheHobo
One World: Why Not AA/BA Transatlantic Mileage posted Wed Jul 26 2006 17:43:46 by Eastern023
AA/BA To Reapply For Alliance Immunity posted Wed Feb 1 2006 18:38:02 by Texan
AA/BA-AF/KL posted Mon Oct 10 2005 13:59:47 by MauriceB
 
BrianDromey
Posts: 1934
Joined: Sun Dec 10, 2006 2:23 am

RE: AA/BA Merger Potential

Thu Oct 18, 2007 9:43 am

Quoting Ha763 (Reply 3):
BA and AA applied twice for anti-trust immunity, which were both denied.

I dont think the last attempt was deniued at all, IIRC, it was in fact, approved subject to loosing a lot of slots at LHR. BA/AA decided tht thios was not an option.

With OS the market is now free to fly into LHR. I suppose BA could put up a better argument as to why it should not loose slots.

Quoting ANother (Reply 4):
A merger would not be legal under US law. US airlines must substantially owned and effectively controlled by US citizens. Also CEO and majority of Board members must be US citizens.

This was my understanding too, however, there is nothing to stop BA owing 49.9% of the equity and just 25% of the voting rights.....I dont think.

Brian.
Next flights: MAN-ORK-LHR(EI)-MAN(BD); MAN-LHR(BD)-ORK (EI); DUB-ZRH-LAX (LX) LAX-YYZ (AC) YYZ-YHZ-LHR(AC)-DUB(BD)
 
UAL777UK
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Joined: Sun Nov 20, 2005 1:16 am

RE: AA/BA Merger Potential

Thu Oct 18, 2007 11:38 am

BA and BD have both announced this morning that they have had no discussions whatsoever about a merger so looks like BA is simply interested in getting in to bed with AA.
 
aajfksjubklyn
Posts: 458
Joined: Wed Jul 25, 2007 10:46 pm

RE: AA/BA Merger Potential

Thu Oct 18, 2007 11:49 am

This was announced on NYC radio this am, although it was vague, looking to hear more....AA and BA IMHO would a wonderful match up..
 
scotron11
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RE: AA/BA Merger Potential

Thu Oct 18, 2007 1:48 pm

Quoting B747forever (Reply 1):

I can see this happen in the near future.

Hopefully. We all wanted "fortress" LHR opened up and it finally happened! I think the tie-up of AF/KLM and the recent AF/KLM Skyteam "merger" would be a good precedent. And maybe the price to pay would'nt be as much as the benefits.

BTW, could the BA terminal and AA terminal at JFK be joined?? I know they're next to each other but I seem to remember there's a road that cuts right through them.

regards
 
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Richard28
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Joined: Thu Aug 14, 2003 5:42 am

RE: AA/BA Merger Potential

Thu Oct 18, 2007 2:14 pm

Quoting ANother (Reply 4):
A merger would not be legal under US law. US airlines must substantially owned and effectively controlled by US citizens. Also CEO and majority of Board members must be US citizens.

I thought a future softening (or removal?) of this law was an understanding under the open skies agreement with the EU?
 
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STT757
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Joined: Tue Mar 28, 2000 1:14 am

RE: AA/BA Merger Potential

Thu Oct 18, 2007 2:20 pm

Quoting Scotron11 (Reply 8):
BTW, could the BA terminal and AA terminal at JFK be joined?? I know they're next to each other but I seem to remember there's a road that cuts right through them.

The two terminals can't be joined but why would they even want to, AA's JFK terminal has plenty of room for expansion. The Terminal is built only halfway to it's original scope, it was originally envisioned as a 55 gate mega Terminal. When all the construction is done it will have only 39 gates and about half the square footage, building the Terminal out to it's full design would provide plenty of gate, ticketing and lounge areas for BA.
Eastern Air lines flt # 701, EWR-MCO Boeing 757
 
aajfksjubklyn
Posts: 458
Joined: Wed Jul 25, 2007 10:46 pm

RE: AA/BA Merger Potential

Thu Oct 18, 2007 2:41 pm

A 6 lane highway runs between AA and BA...It would never happen.
 
albird87
Posts: 566
Joined: Mon Jul 10, 2006 7:15 am

RE: AA/BA Merger Potential

Thu Oct 18, 2007 3:12 pm

Quoting Scotron11 (Reply 8):
BTW, could the BA terminal and AA terminal at JFK be joined?? I know they're next to each other but I seem to remember there's a road that cuts right through them

Well they are kinda connected already with the JFKskyrail transit system. However building a simple bridge/walkway system past secutrity for simple transfers could be done. I wont be though in my opinion.

Speak of AA's new terminal in JFK, when will they get rid of that mess which is terminal 8??
They could then expand the mega terminal proplery and include enough heavy gates for BA also and allow them to operate underone roof. However I think if this was ever going to happen then i beleive they would have to make it a Oneworld terminal which would involve a lot of movement at JFK as CX,JAL,(RJ?),LA,IB,(QF?) operate also into JFK.

In my opinion with people wanting better/easier connections this should be done, and if they can build a special train just for OW at LHR to operate from T3-T5 that would make the transfer a little bit less stressful

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