BA’s biggest problem isthat its parent company IAG is being dragged down by IB, an airline which is losing its market share in Europe-Latin America (luckily for OW, mostly to LATAM), it is facing serious financial losses, still hasn’t improved their onboard service (I have never been on IB, but there aren’t too many praises)and worst of all its in a country that is facing a terrible economic recession,high unemployment, harsh austerity and lastly increasing political issues
In other words BA’s merger with IB has been a mistake, it might have given BA a much bigger Central and South American presence, but it has come at a high price (vast job cuts, labour relations worsening, reductions in fleet numbers and routes etc), so what I am suggesting is that BA and IB separate, by:
1: BA introduces new routes to South America, more specifically LATAM’s hubs (or at least some ofthem, 3 are not good enough)
2: BA becomes fully responsible for all UK-Spain routes within IAG
3: A separation process begins between BA and IB
4: Lastly International Consolidated Airlines Group S.A. (known as International Airlines Group or IAGfor short) formally spins off British Airways plc and its becomes listed on the LSE (IAG will then cancel its LSE listing)
British Airways plc willconsist of the following subsidiaries:
BA CityFlyer Limited
British Airways Limited (operates LCY-JFK flights)
British Airways World Cargo Limited
Flybe plc (15% stake)
Comair Limited (18% stake)
OpenSkies S.A.
International Consolidated Airlines Group S.A. will then rename itself Iberia Aviation Group S.A (keeping the IAG installs and will consist of the following subsidiaries:
Iberia Líneas Aéreas de España S.A
IberiaCargo S.A.
Iberia Express S.A
Vueling Airlines S.A.
Ultimately this will mean IB will have enough cash (from the spinoff of BA) to finance the restructuring of the airline to make the airline survive the economic mess weare all in and BA can focus on better competing with its rivals in Europe, the Middle East and North America
Do youthink a BA-IB separation will work?