Posts: 1324
Joined: Wed Jun 21, 2000 7:56 am

Now BA And Swissair Merger?

Wed Sep 27, 2000 4:10 am

This was from Mondays daily news on Airliners.net net.. what do you think?

British Airways (London) is now expected to start negotiations with Swissair (Qualiflyer) on a possible merger following the failure of the KLM merger negotiations. Since American is getting
closer to SR this would make sense and probably keep the oneworld alliance together. More details
are now coming to light on why the BA/KL merger failed. Officials at the Dutch airline are now publicly stating the deal was destroyed when the British carrier raised last-minute obstacles. BA ended the merger discussions according to KL. One interesting fact of the negotiations was the desire of the Dutch to maintain a nationalistic entity in the Netherlands (a shell company after the merger) to retain the international route authorities out of Amsterdam although the British would have controlled the newly merged company. One of the obstacles in the merger talks was how the Dutch could retain their take-off and landing rights at AMS with this holding company. This issue will probably come up again in any discussions with SR and how the independent (non EU) Swiss will retain their routes and rights in and out of Switzerland. This leads to the following question: Are mergers between European flag carriers naturally flawed and impossible to overcome? On other news, CEO Rod Eddington is expected to move ahead with a significant amount of job cuts to reduce losses. Some routes are also expected to be cut. Stay tuned.
Posts: 1324
Joined: Wed Jun 21, 2000 7:56 am


Wed Sep 27, 2000 4:25 am

Sorry my computer blundered as I hit the submit button and I didn't think it posted so I did it over again... I also typed the wrong website at the top. It should read Airlinersonline.com. Sorry once again.
Posts: 3310
Joined: Sun Sep 24, 2000 12:26 pm

RE: Sorry...

Wed Sep 27, 2000 11:01 pm

Do you all think that the SwissAir talks will go through??? Don't think so...

Boeing747 万岁!
Posts: 4371
Joined: Tue Nov 16, 1999 11:32 pm

RE: Now BA And Swissair Merger?

Wed Sep 27, 2000 11:22 pm

I don't think that there will a merger but a very close goeing together. SAirGroup (not Swissair) is bigger than KLM. In fact two European flag carriers are already "merged", but they keep their own brand: Swissair and Sabena. SAirGroup (SR's mother) owns soon 85 % of Sabena and has already put their flight operations together into the Airline Management Partnership.