BA Comair

[Arq]

Is BA (the real one) busy buying out Comair?

[Rotates Lowly]

Simple answer. No.

[Avi8tor]

BA(uk) couldn't own more than 49% anyway.

[evanb]

Why can't BA (UK) own more than 49%? I believe that is a rule in the US, not South Africa!

[Ibhayi]

Here are just some of the reasons why.

South Africa is seen by the rest of the world as being some what unstable politically and economically. Secondly a foreign business does not want to make a purchase where it is not purely business but politics as well, this is with regard to BEE and AA. Secondly it would take a lot of cash and with fuel prices at the moment every airline needs every single cent they can muster.

If BA (UK) was keen to purchase the airline they would have not sold the % they did to BidVest about 12 months ago.

So no BA have bigger fish to fry.

[Goldfish Jack]

IN terms of present SA legislation a foreign company may not own more than 20% of a SA registered company unless they have a BEE partner.

Not much chance of BA doing that dont u think!

[Avi8tor]

I am fairly sure in terms of the Licencing Act, SA airlines have to be 51% locally owned.

[evanb]

But BA already own more than 20% of MN!

[777Contrail]

In 2000 BA acquired 18,3% of Comair Ltd. They sold 4% about 18 months ago.

Management holds the biggest stake at 27%, followed by Bidvest at 20%, its black economic empowerment partners (Thelo Consortium) which has 16%, Comair Share Incentive Trust 12,9%, British Airways 12,85%, Allan Gray 11,3%, Oasis 4,8% and Investec 2,5%.


I know Google is hard to use, but it works...........................

[evanb]

Counting is also hard, I didn't know that there could be 107.35% ownership of a company (that is what the numbers add up to). Its just like the prop forward who tells you he is giving 110%!

The stake that BA bought in 2000 was in addition to what it alerady owned!

[Avi8tor]

Well spotted. Sorry 777, but u asked for that. :ok:

[REAL ORCA]

But BA already own more than 20% of MN!

COMAIR is the holding company for both BA (local) and MN (kulula). How can BA (big brother) have a 20 percent share in MN alone? COMAIR is a listed company trading under COMAIR LTD.:(

[777Contrail]

Current British Airways (PLC) ownership of Comair LTD shares amount to 12,85%.

[evanb]

MN is the code for Comair Ltd, Kulula is just a brand that they operate, both Kulula and BA (SA) flights use the MN code. The BA code is actually a code share! The flight must operate with a code of a South African registered airline to operate a South African registered aircraft!

[Arq]

As it turns out BA is negotiating to buy more/all of Comair as we speak.

[REAL ORCA]

At the price of Comair shares everybody should be buying!

[Arq]

BA and Iberia hold merger talks

British Airways and Spain's Iberia are holding talks on a possible merger, the two airlines have said.
The firms said the British Airways and Iberia brands would be retained as part of a combined group under the plans.
BA boss Willie Walsh said the proposed merger would help the airlines in the current economic environment.
The companies said it would take several months to reach an agreement on the terms of the merger. The news boosted BA's share price by 6%.
Mr Walsh said the merger was an attractive proposition for BA, which, like other airlines, is struggling with sky-high fuel costs.
"The aviation landscape is changing and airline consolidation is long overdue," he said.

Iberia will likely concentrate on South America and Africa while BA will focus on the Middle and Far East
Laurie Price, Mott MacDonald

He said that it was too early to say whether the tie-up would result in job losses.
Iberia flies to 109 destinations and its Madrid hub acts as the European gateway to Latin America.
"A merger would be good news for our customers," said Iberia's chairman and chief executive Fernando Conte.
Co-operation
Howard Wheeldon, a city analyst with BGC Partners, told BBC News that the merger would allow BA and Iberia to reduce costs and "compete better in a difficult world".

IBERIA FACTS
Employs 22,000 staff
Carried 32 million passengers last year
Has 198 aircraft
Flies to 109 destinations

"The oil price will have hastened these talks, but it's all about looking forward," he said.
The proposed merger will follow the template set by Air France-KLM and allow both Britain and Spain to say they have a national carrier.
BA's close rival Virgin Atlantic said the merger could lead to less choice for consumers and push up ticket prices.
Virgin also expressed concern that the combined entity would control nearly half of all take off and landing slots at Heathrow airport.
Laurie Price, head of aviation strategy at Mott MacDonald, said that travellers may see fewer flights to certain destinations or larger aircraft used on certain routes.
"They will agree spheres of interest," Mr Price said.
"Iberia will likely concentrate on South America and Africa while BA will focus on the Middle and Far East," he added.
Co-operation
BA is bigger than its Spanish rival in stock market terms, with a market value of £2.9bn. By contrast, Iberia is worth 1.63bn euros (£1.3bn).

BRITISH AIRWAYS FACTS
Employs 42,000 staff
Carried 33 million passengers last year
Has 245 aircraft
Flies to 154 destinations

The two airlines have a 10-year history of co-operation and are both members of the Oneworld alliance.
Last year, BA considered a takeover move for Iberia in tandem with a number of private equity firms, but later pulled out of the plans.
BA acquired a 9% stake in Iberia in 1999 and recently increased its holding to 13.2%. Iberia recently bought a 2.99% stake in BA.
British Airways has been beset by problems in 2008.
In addition to high fuel prices, its pilots have threatened to strike over the launch of a new subsidiary and the opening of Terminal 5 was regarded as a disaster.
Staff at the new terminal were not able to get into work, thousands of bags were mislaid and flights were cancelled.


Story from BBC NEWS:

[pfm08]

on a somewhat unelated topic, is there any truth to the rumour comair will be starting a freight operation?

[777Contrail]

Yes. They've taken some B777 freighters that were defaulted on and will be serving destinations that BA mainline have a passenger service to.

:E:E:E

[Ibhayi]

WHAT? NO NO you have it all wrong.

Comair is secretly waiting for BA mainline to buy IB then merge with AA then before they know it they will all suddenly be owned by Comair, it is reverse psychology.

[Pitch&Fan]

I heard the following news today just after TOC:

SAA is going to buy-out BA Mainline, aquire Comair, and use the current fleet as cabin crew SEPT simulators. All Comair/BA pilots will be forced to go back to the SAAF (who have just spent their last ammo money on lobbying for this deal), or to charter, and the current Comair management team will be sued for thinking up the Kulula colour scheme, and for being girlishly nasty to SAA.

The entire deal will be funded by the taxpaying SA public, along with a 100% pay-rise for the SAA pilots, who will unfortunately only be paid every second month after the increase.

'Bout time I say!

Viva SAA! Viva!

[REAL ORCA]

:}:}:}:}:D