[Tete_de_cuvee]

Pixel,

Yes Southwest Airlines is a loco, however many Loco’s have failed – specifically the Pacific Southwest, the original Loco. PSA failed as it extended itself too far, too fast and into areas outside its expertise.

Over decades, Southwest Airlines have stuck to the knitting, becoming excellent at what they do first before expanding their boundaries/territories gradually and profitably.

One acquisition at a time only when they are ready. Certainly not overpaying to secure marketshare or opportunistically. Southwest then turned each acquisition around before moving to the next.

Southwest also planned well, they knew down turns happened and other unpredicatable events outside their control occur eg 9/11. Yet still delivered.

Now IAG is Euro based, just wait for Walsh to blame a downturn in the Euro, which is likely to occur when Greece eventually departs. Cue predictable blame and excuses.

[Hippocampus]

The difference between IAG and AF-KLM is that the losses at Air France are such that the whole group is expected to post a loss for 2011, in contrast to IAG and Lufthansa.

Iberia is loss-making and in need of structural reform but IAG has hardly been sitting on its hands in its first year:

– New A330s ordered to replace A340s
– New long-haul business class and economy class products announced
– Various projects to improve punctuality, aircraft turnaround times, and connection times at Madrid
– Iberia Express launched
– Plans to modernise Iberia livery and brand image
– Medium/long term plans to use Madrid as a gateway between Asia and Latin America

It is also noteworthy that Lufthansa, which has struggled to turnaround loss making subsidiaries, has announced a major restructuring to overhaul its structure and move to an IAG type structure instead of independently managed business units.

With IAG now acquiring bmi, it is certainly catching up very quickly in the European consolidation game. Definitely one to watch.

[RichHI1]

But will the LH Group incorporate in Switzerland and have the headquarters in Germnay so they can report in CHF? I find the IAG arrangement very peculiar, is it common practice to incorporate in a different country and currency from the headquarters?

[Hippocampus]

IAG is incorporated in Spain and has a dual listing in London and Madrid. It has an operational base in London but I assume board meetings and so forth are held in Madrid.

[RichHI1]

The IAG website says “The corporate head office for IAG is in London, UK”. Which I fins strange for a company registered in Spain. Maybe the EU would only allow the merger if the company was in a Eurozone country for political reasons? Certainly they have suffered due to exchange rate movements of the Euro.

[DisgustedofSwieqi]

Rich

Lots of US corporations have registered offices in DE and head offices elsewhere, I don’t see anything particularly unusual here, it’s just a symptom of globalization.

Domicile where the tax and other laws suit you best , run the business from where it suits you best.

My small business is listed in DE, but I operate it from wherever I am.

[RichHI1]

DoS I would not find it strange if the Company was registered in Castille and Headquartered in BArcelona as that is the same country (for now) or even registered in ENgland and Headquartered in Wales. I am not familiar with companies whose corporate headquarters are in separate countries to their registration.

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