I do not think that there is any reason why EI cannot be a massive transfer hub for europe/Mid east-US/Canada/Carribean destinations. An alliance with EK makes a lot of sense. EK can offer EI a shed load of cash and passengers, while EI gives EK transatlantic presence and a cost base close to the of FR, thanks WW
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EI has a high reputation in indusrty circles, and although slightly tarnished by WW its passenger experience is certainly as good as IBERIA ALITALIA and BMI. What EI dosent have is money... EK do, and with DM already inside and code-shares with EK I'd say a trade sale to EK is highly likely. The this would be the most palitable solution for the unions and Government, as no one side seems to have completely lost... secure jobs and cash in the bank, not to mention an airline partner with huge devlopement plans and tons of cash. Quite honesty the two airlines could produce a mammoth global network.
With the right A/C!