FLVILLA
Topic Author
Posts: 316
Joined: Thu Jun 03, 2004 8:07 pm

BA To Bid For IB

Sun Nov 04, 2007 10:46 am

Looks as if the ball might start rolling again on this front ......

http://economictimes.indiatimes.com/...ins_Iberia/articleshow/2516556.cms
I hope in life i can work to live, not live to work
 
commavia
Posts: 9651
Joined: Mon Apr 25, 2005 2:30 am

RE: BA To Bid For IB

Sun Nov 04, 2007 10:55 am

About frigging time BA got serious about this. Iberia and BA belong together, if for no other reason than that they are now the only two major carriers left in Europe that still haven't merged with/taken over partner airlines to broaden their network. BA and Iberia have networks that are highly complimentary, and with the new T4 at Madrid and upcoming new T5 at Heathrow, the London-Madrid axis will give them a powerfully competitive value proposition to lure customers onto the larger BA-IB-oneworld network.
 
Orion737
Posts: 3044
Joined: Sat Jan 08, 2005 10:14 pm

RE: BA To Bid For IB

Sun Nov 04, 2007 10:57 am

I hope if it happens, we might see a return to complimentary drinks service at least on European IB service.
 
BA787
Posts: 2381
Joined: Sat Jun 03, 2006 9:40 pm

RE: BA To Bid For IB

Sun Nov 04, 2007 11:23 am

Quoting Commavia (Reply 1):

Couldn't have put it better myself.

I've always said they would be good together, I just hope something happens this time

Cheers

BA787
 
PRAirbus
Posts: 687
Joined: Wed Apr 20, 2005 11:59 pm

RE: BA To Bid For IB

Sun Nov 04, 2007 4:55 pm

Good, it makes sense BA/IB in order to keep oneworld's integrity especially since BA/AA lack anti-trust immunity over transatlantic sectors. I doubt the EU would allow AF or LH to acquire IB since those two airlines have already swallowed other European carriers and both dominate a wide number of markets in Europe needless to mention they have flexible agreements w/their American counterparts. AA/BA should get anti-trust approval, the LHR/UK Open Skies has already been opened...what else do they want??? It should be fair for AA/BA since AF/KL/Skyteam and LH have a vast competitive alliance. BA should grab IB at all cost.
 
vv701
Posts: 5773
Joined: Fri Aug 19, 2005 10:54 am

RE: BA To Bid For IB

Sun Nov 04, 2007 5:07 pm

Quoting PRAirbus (Reply 4):
BA should grab IB

Yes.

Quoting PRAirbus (Reply 4):
at all cost

No.
 
Rafabozzolla
Posts: 968
Joined: Sun Apr 30, 2000 1:27 pm

RE: BA To Bid For IB

Sun Nov 04, 2007 10:04 pm

Their intercontinental networks do complement each other. Only BOS, JFK, MIA, ORD, MEX, GRU, GIG, EZE, DKR, LOS and JNB overlap. But it seems a bit western-centric and they would still need a stronger Central European hub (HEL and BUD are much too small).
 
anstar
Posts: 2864
Joined: Sun Nov 23, 2003 3:49 am

RE: BA To Bid For IB

Sun Nov 04, 2007 10:38 pm

Quoting Rafabozzolla (Reply 6):
Their intercontinental networks do complement each other.

They are very complimentary - However I think their biggest difference will be the culture at both companies.
 
jacobin777
Posts: 12262
Joined: Sat Sep 11, 2004 6:29 pm

RE: BA To Bid For IB

Sun Nov 04, 2007 11:58 pm

Quoting PRAirbus (Reply 4):
Good, it makes sense BA/IB in order to keep oneworld's integrity especially since BA/AA lack anti-trust immunity over transatlantic sectors.

...AA BA will get ATI soon enough...
"Up the Irons!"
 
rleiro
Posts: 219
Joined: Mon Jan 02, 2006 12:54 pm

RE: BA To Bid For IB

Mon Nov 05, 2007 2:49 am

Quote:
They are very complimentary - However I think their biggest difference will be the culture at both companies.

Ditto!
A proud SVZM Spotter!
 
StarGoldLHR
Posts: 1346
Joined: Mon Feb 16, 2004 1:29 am

RE: BA To Bid For IB

Mon Nov 05, 2007 8:19 am

Havent AA just removed the ability to earn status miles on any BA flight ??

I knew previously you couldnt earn miles crossing the Atlantic, but not even status miles on BA European or Asia flights is a bit tight fisted... One Worlds falling apart not coming together... hence I never fly with it yet have 1.5 mn miles in Sky Team and Star Alliance instead.
So far in 2008 45 flights and Gold already. JFK, IAD, LGA, SIN, HKG, NRT, AKL, PPT, LAX still to book ! Home Airport LCY
 
JMULAH
Posts: 9
Joined: Mon Nov 05, 2007 7:59 am

RE: BA To Bid For IB

Mon Nov 05, 2007 8:42 am

I rather see IB on it's own, but I can honestly see BA/IB as a partnership, especially when OW is their alliance.
What IB needs is someone like the Marsans group to make them big. Then it would be another different story! (IB with PTV's? it will come but we have to be patient)
 
wolflair
Posts: 56
Joined: Mon Sep 10, 2007 8:26 pm

RE: BA To Bid For IB

Mon Nov 05, 2007 12:50 pm

Such a bid could trigger a bidding battle like Barclays vs. RBS consortium for ABN. Be sure that if BA goes for IB, LH would not sit tight without giving a battle. Whilst AZ may be a target for LH, IB makes more sense for them since they won't have the massive burden of the AZ's unions.

Quoting Rafabozzolla (Reply 6):
Only BOS, JFK, MIA, ORD, MEX, GRU, GIG, EZE, DKR, LOS and JNB overlap.

From those destinations, EZE, MEX, MIA and maybe GRU/GIG serve 2 different markets. There is a huge Latinamerican expat population in Spain (and viceversa) that would make those destinations even better server should a merger occur. For example, IB serves MX 14x while BA does it only 4x. However, there is definitely market for even more frequencies (IB cannot add more as they have reached the max on the bilateral)
JMM -A319,A320,A321,A333,A343,AT45,AT72,B462,B722,B737s from -200 to -800,B744,B752,B762,B763,BE35,DC91,F70,Ju52,MD80,S3
 
vv701
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Joined: Fri Aug 19, 2005 10:54 am

RE: BA To Bid For IB

Mon Nov 05, 2007 1:22 pm

Quoting Wolflair (Reply 12):
Such a bid could trigger a bidding battle like Barclays vs. RBS consortium for ABN. Be sure that if BA goes for IB, LH would not sit tight without giving a battle.

BA already own 10 per cent of IB and have options to buy 29 per cent more. So to win IB in a battle LH requires 82 per cent of all of IB's non-spoken for equity while BA requires less than a quarter of that at 18 per cent. And if LH bid high to ensure they get the support they need to win IB the main cash winner will be BA.

Although there is talk of LH and AZ as well as IB, BD should not be forgotten. I believe that LH have an option to buy Michael Bishop's majority share holding in BD and that that option could come up next year. But if LH load themselves with debt to buy AZ and/or IB where would they get the cash to buy BD and its valuable LHR slots?

So it is my view that either BA will get IB or IB will remain independent at least for the time being and that LH will not enter any battle..
 
commavia
Posts: 9651
Joined: Mon Apr 25, 2005 2:30 am

RE: BA To Bid For IB

Mon Nov 05, 2007 1:26 pm

Quoting Wolflair (Reply 12):
Such a bid could trigger a bidding battle like Barclays vs. RBS consortium for ABN. Be sure that if BA goes for IB, LH would not sit tight without giving a battle.

As VV701 said, while there definitely are still hurdles to clear, this deal is essentially BA's to lose. Because they already own 10% of Iberia, and have first right of refusal on a further (approximately) 30%, they already stand to almost control Iberia no questions asked, without any possibility of interference or "battle" from anyone. If BA wants to control 39% of Iberia, they can tomorrow, without any difficulty. So, of course, they would have to fight for another 11% +1 share in order to gain full control of Iberia, and other bidders like perhaps AF-KL, LH, other banking consortiums, etc. might well battle them for that. But again, as VV said, those other bidders would have a very difficult time in gaining full control of Iberia when a single shareholder - BA, hypothetically - would control nearly 2/5 of all the votes. With that amount of power, it wouldn't be too challenging for BA to find another sizeable voting blog representing at least 11% +1 share of the remaining equity to go along with them.

Again, from my perspective: if BA wants this deal (BA-IB merger) to happen, it will happen. Simple as that.

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