Is BA’s “Transformational Deal” Here?

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This topic contains 1 reply, has 1 voice, and was last updated by  VintageKrug 29 Jul 2009
at 15:53
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  • Anonymous

    VintageKrug
    Participant

    Various news services are reporting a profit sharing agreement between Iberia, American Airlines and BA will be put to regulators today.

    Hopefully BA will get a good deal as it is relatively financially strong in comparison to the other two potential partners, though all are struggling with the current oil price and broader economic environment.

    This looks like a great deal for American and Iberia, but then I am not sure they will have any profits to share……

    What it does underline is a shift away from stronger ties with Qantas, notwithstanding the JSA and oneworld agreements, and a disappointing shift in the balance of power towards the “legacy” economies of the US and South America, without any strengthening of presence in the “new” economies of China and India.

    Given it is those latter two markets where much of the growth will be in the coming decade, that is of some concern.

    The much espoused decoupling of the global economy would suggest having a stronger profit share with a business based in a countercyclical zone would be doubly beneficial to an airline, operating in a notoriously cyclical industry.

    http://www.ft.com/cms/s/0/ac3382cc-4881-11dd-a851-000077b07658.html

    …..American, Iberia and BA plan joint deal
    By Justin Baer in New York and Kevin Done in London

    Published: July 2 2008 23:33 | Last updated: July 2 2008 23:33

    American Airlines, British Airways and Spain’s Iberia are close to applying for antitrust immunity to form a joint venture that would be one of the most powerful forces in the transatlantic aviation market.

    The airlines aim to reach an accord on profit and revenue sharing this month, according to executives at the three carriers.

    Continues via the link………..

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