Judging from said article it would appear that the Brits are posturing themselves for a more domesticated AMR. ''The Don'' has to juggle both sides of the Atlantic or go the way of JetBlue. The shareholders are clamoring and the unions are walking away, it''s time for some leadership.
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BA to reveal stronger ties with Iberia
By Russell Hotten
BRITISH AIRWAYS is today expected to announce that it is strengthening its ties with Iberia, the Spanish airline, a move that will fuel suggestions that they could eventually merge.
The airlines are to start code-sharing on a range of routes, enabling them to synchronise flights and cut costs by helping to market each other’s services.
Rod Eddington, BA’s chief executive, has made no secret of his admiration for Iberia and its potential to be a “natural partner†should national airlines be allowed to merge. BA already owns 9.9 per cent of the Spanish flag carrier.
BA and Iberia already code-share on services from London to Madrid and Barcelona. Now ten other destinations in Spain are being added, including Seville, Malaga, Bilbao and Valencia.
The arrangement needs clearance from regulators in Brussels, though the code- sharing is allowed to operate while officials scrutinise the deal.
The code-sharing also involves services run by GB Airways, the BA European operation, and brings the total number of code-share routes between the three carriers to 57.
Having had a proposed alliance with American Airlines blocked, and a possible merger with KLM fall apart, BA is moving tentatively towards Iberia and wants to avoid any more strategic embarrassments.
Iberia, once known as an airline basket case, has been recapitalised and restructured, and is now seen as one of the most financially strong carriers in Europe.
Mr Eddington believes that the global economic slowdown, compounded by problems caused by a war in Iraq, could lead to an easing of restrictions on mergers between flag carriers, and he is positioning the airline for when the time comes.
Meanwhile, Mr Eddington has sought to head off rumours that he could quit BA after what he described as the most difficult years in his aviation career.
In an interview with Travel Weekly magazine he said that he would see out his days in aviation with BA, suggesting that he had no intention of leaving in the near future. It follows mutterings in the City that, after two years struggling to put BA on a sound financial footing, he might resign.
-------------------------------------------
BA to reveal stronger ties with Iberia
By Russell Hotten
BRITISH AIRWAYS is today expected to announce that it is strengthening its ties with Iberia, the Spanish airline, a move that will fuel suggestions that they could eventually merge.
The airlines are to start code-sharing on a range of routes, enabling them to synchronise flights and cut costs by helping to market each other’s services.
Rod Eddington, BA’s chief executive, has made no secret of his admiration for Iberia and its potential to be a “natural partner†should national airlines be allowed to merge. BA already owns 9.9 per cent of the Spanish flag carrier.
BA and Iberia already code-share on services from London to Madrid and Barcelona. Now ten other destinations in Spain are being added, including Seville, Malaga, Bilbao and Valencia.
The arrangement needs clearance from regulators in Brussels, though the code- sharing is allowed to operate while officials scrutinise the deal.
The code-sharing also involves services run by GB Airways, the BA European operation, and brings the total number of code-share routes between the three carriers to 57.
Having had a proposed alliance with American Airlines blocked, and a possible merger with KLM fall apart, BA is moving tentatively towards Iberia and wants to avoid any more strategic embarrassments.
Iberia, once known as an airline basket case, has been recapitalised and restructured, and is now seen as one of the most financially strong carriers in Europe.
Mr Eddington believes that the global economic slowdown, compounded by problems caused by a war in Iraq, could lead to an easing of restrictions on mergers between flag carriers, and he is positioning the airline for when the time comes.
Meanwhile, Mr Eddington has sought to head off rumours that he could quit BA after what he described as the most difficult years in his aviation career.
In an interview with Travel Weekly magazine he said that he would see out his days in aviation with BA, suggesting that he had no intention of leaving in the near future. It follows mutterings in the City that, after two years struggling to put BA on a sound financial footing, he might resign.
