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Iberia BA love match
BA and Iberia clear regulatory hurdle
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Eugene Gold Monday 26 April 2010 |
I have suggested previously that Iberia may have been having second thoughts about their marriage of convenience with strike-torn British Airways (see The end of BA merger plans? 21st March 2010). I now learn that the £4 billion pound deal has been agreed by the two airlines.
The British Airways legal team were apparently cock-a-hoop in their drinking haunts this week but I am still unsure whether Iberia will make it to the altar or will turn out to be the reluctant bride.
For British Airways, there is still the not-so-small matter of obtaining European Commission approval. Current thinking is that the Commission will do what it can to help the troubled airline sector. For Iberia, of course, you can read that both ways.
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Jack Logan, Newcastle, England 26 April 2010, 08:25AM | |
I cannot see what all the fuss is about. How does this type of merger help a passenger like me? The most likely outcome is that the two airlines will cut out some staff and will not reduce prices. I will pay the same and get less help and service. | |
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This Iberia merger makes it all the more likely that BA will press ahead with the American Airlines deal. There is already an application in with the Department of Justice for antitrust immunity. They need because the current rules prohibit foreign airlines from owning more than a quarter of a US carrier. Overturning this would suit the European Commission which has been pushing for closer cooperation on transatlantic flights. | |
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David Jenkins, Reading, UK 26 April 2010, 08:47AM | |
The real panic is going to be about the BA American Airline merger and the allocation of slots at Heathrow. If this goes ahead, it will give BA a lot of control over the transatlantic routes and probably stifle competition. BA might be a bit cleverer than we give them credit for. | |
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This is a long awaited coup for BA. They really see expansion as the answer to killing of the low-cost airlines. The next big step for them is is American link up. They may be right, many people do hanker after a better standard of travel. | |
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I work in the City and know that Iberia has got a 'walk away' option if British Airways cannot resolve how to fund its 3.7 billion pound pension deficit. British Airways has to present its plans by the end of June. This figure was bigger than the company's market capitalization when it was valued last year. I know these pension black holes swing massively with the stock markets and the figures are probably better now than they were then, but it is still one hell of a big burden if you are Iberia on the point of a merger. | |
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BA should be really pleased to have pulled this off. Iberia actually need a partner and so, despite the problems that BA have with the unions, I do not see Iberia walking away from this one. | |
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Jane Green, Surrey 1 May 2010, 01:09PM | |
What is the point of all this? Is this some British-Spanish Airway or something? Is it just about money? why can we not just have some concentration on running a simple and efficient airline. I just want to go to the airport, get on the plane and arrive on time. All this nonsense drives me mad. | |
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