running rabbit
6th Sep 2010, 11:12
BA-Iberia plans dozen takeovers
Monday, September 06, 2010
Chris Gray ([email protected])
British Airways and Iberia have drawn up plans to takeover 12 carriers on their way to creating the world’s largest airline group.
The dozen carriers — rumoured to include Qantas, Cathay Pacific, Air Berlin and Gulf Air — are on a shortlist drawn up after BA and Iberia initially considered 40 airlines.
There is speculation that the shortlist could also include India’s Kingfisher Airlines, and Chile’s LAN, which has itself announced plans to merge with Brazil’s TAM.
BA chief executive Willie Walsh said the expansion plan was a long-term goal that would probably not be completed until he retired.
But speaking in Mumbai at the launch of a code-sharing agreement with Kingfisher, he said creating International Airlines Group (IAG) through the merger with Iberia had been done with the intention of pursuing consolidation.
The Iberia deal and the joint venture with American Airlines were not meant to be an end in themselves, he added.
“I have sat down with Iberia and we initially looked at 40 like-minded airlines who believe that the future of the industry lies in consolidation,” he said.
“We have narrowed this down to 12. Becoming the biggest airline group in the world is not a bad ambition to have.”
The creation of IAG is expected to be completed by the end of the year. Walsh will become chief executive of IAG, and BA finance director Keith Williams will become chief executive of BA.
BA and Iberia will continue to operate as separate brands.
Monday, September 06, 2010
Chris Gray ([email protected])
British Airways and Iberia have drawn up plans to takeover 12 carriers on their way to creating the world’s largest airline group.
The dozen carriers — rumoured to include Qantas, Cathay Pacific, Air Berlin and Gulf Air — are on a shortlist drawn up after BA and Iberia initially considered 40 airlines.
There is speculation that the shortlist could also include India’s Kingfisher Airlines, and Chile’s LAN, which has itself announced plans to merge with Brazil’s TAM.
BA chief executive Willie Walsh said the expansion plan was a long-term goal that would probably not be completed until he retired.
But speaking in Mumbai at the launch of a code-sharing agreement with Kingfisher, he said creating International Airlines Group (IAG) through the merger with Iberia had been done with the intention of pursuing consolidation.
The Iberia deal and the joint venture with American Airlines were not meant to be an end in themselves, he added.
“I have sat down with Iberia and we initially looked at 40 like-minded airlines who believe that the future of the industry lies in consolidation,” he said.
“We have narrowed this down to 12. Becoming the biggest airline group in the world is not a bad ambition to have.”
The creation of IAG is expected to be completed by the end of the year. Walsh will become chief executive of IAG, and BA finance director Keith Williams will become chief executive of BA.
BA and Iberia will continue to operate as separate brands.