[Anonymous]

[azidane]

Just read this interesting article

http://gulfnews.com/business/aviation/qatar-eyes-stake-in-british-airways-parent-1.1180980

[VintageKrug]

The Games have well and truly begun.

As I’ve been hinting for some time, Qatar’s involvement in IAG is central to its future strategy.

This corporate activity is a watershed moment for IAG, and completes the funding picture to deliver an airline powerhouse – specialising in turning round underperforming airlines – which will be a tremendous boon for IAG internationally for its future internatioanl expansion plans.

It also joins the dots on the benefits of the Iberia acquisition, which apart form the short term cash in injection which was essential to British Airways’ survival, has made this investment by Qatar much more attractive for them.

The great working relationship between Al Baker and Walsh has gone a long way to seal this deal, and IAG’s proven expertise in turning round failing airlines adds a capability not seen in most other airline companies.

This move further consolidate’s Willie’s position, both at IAG and more importantly for the future, at oneworld.

IAG remains weak in Africa. I would hope to see that corrected in the longer term.

[TominScotland]

Really interesting move and important, strategically, at a time when Lufthansa may be exploring a relationship with Emirates and AF/KLM have moved close to Etihad.

But of far greater importance to posters on this Forum are the really big picture strategic questions that need to be answered by the likes of Walsh and Al Baker – where do Qatar source their cookies? Will these be imposed on BA passengers? Will they be offered in kilner jars? Maybe the answer can be found here

http://www.iffco.com/our_brands_albaker.html

[VintageKrug]

Just a storm in a cookie jar. 😉

Al Baker has roundly denied Qatar has any interest in a purchase, and given his track record that suggests it’s almost certainly on the cards.

[esselle]

TominScotland

Chapeau! Is it desert flour?

Whilst I cannot resist chocolate Hobnobs, we always have a tin of Fortnum’s Chocolossus in for when things get a bit fancy pants.

[stevescoots]

VK, not sure how WW ability to turn around struggling airlines has any relevance in this, I would not class QR as a struggling airline. Unless of course you are saying that with Walsh at the helm that is why Baker is interested.

I would think its more to do with QR entry to OW and taking a stake in IAG would give them leverage to actually make the alliance function as it should and give QR better opportunities to smoothly feed into the network, as opposed to being dictated to within the alliance by BA

[LuganoPirate]

I wonder if IAG will issue more shares for sale to QR, thus raising some fresh capital, or if they’ll just buy a stake in the open market.

Certainly the latter would be good for the share price and investors.

[HarryMonk]

LP

From what I have read, it appears QR may be interested in taking Bankia’s existing 12% stake in IAG

[VintageKrug]

stevescoots, what I was saying was that IAG and many of the BA Management team have experience turning round struggling airlines.

I did not mean Qatar was a struggling airline (though as accounts aren’t published, it’s hard to say either way – it made losses for many years during its explosive growth phase, a good profit in 2011, a modest loss in 2012) but there *may* be room for some efficiency there – what I meant was that IAG is now operating as a turnaround agent – for bmi, for Iberia, and to a lesser extent for Vueling building on the success it has had rescuing BA from imminent bankruptcy only a few years ago.

This makes IAG a very valuable entity in the context of the recession-wracked airline industry – it’s added value few other airline firms offer.

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