You keep banging on about this, but you fail to explain WHY (1) IAG would sell BA (to anyone) leaving themselves with loss-making IB, and (2) how you think VS could possibly afford it, bearing in mind they could not afford to buy BD. These need answering to retain any credibility on your "VS buy BA" point.
1: IAG’s main problem is that both “divisions” face challenges but of a different kind, BA is doing rather well, it has bought BMI and successfully integrated the airline into its own operations and is making profits (no small achievement in this market), but the problem is that due to the fact there are a lack of LHR slots, it barely keeps up with its rivals LH/LX/OS/SN, AF-KL, TK, EK and QR
IB however faces an even bigger problem, surviving in a country that is deep in an economic crisis that is the worst in 70 years; they have cut 20% of the work force and moving routes to Vueling, the region is also facing the prospect that nationalists, the Far-Left and the Far-Right are gaining ground
The question is that do they have the talent and resources to turn round IB without overlooking BA’s challenges and trying to solve them
Now I am sure they do, but if VS (somehow) offers a fairly good deal, IAG might as well take the money and use it to fix IB (along with the fact they can focus on that airline alone)
2: For a start SRB could put his own money into this, also (unlike the failed BD takeover), DL and their ST partners could put their money into this (similar to what happened to the AC/CP merger) as well, and however the chances of this happening are unlikely
And that’s the point, it’s unlikely VS will be sustainable for the long term, its being squeezed by BA, LH/LX/OS/SN, AF-KL, TK, EK and QR (not to mention the various LCCs) and to make matters worse they have little in the terms of a business plan in the time they have been operating, which is based on SRB’s passion, ego and stubbornness
He needs to see that time is running out for his airline, so he needs to end this rubbish about a BA “monopoly” (which it never had and never will) and do a deal with them to secure his airlines short-term future, allow BA/VS to focus on the real “enemy” and to work on the best interests of the UK and their shareholders
DL management have clearly not read “Branson” (the book by Tom Bower), they have also ignored the advice of SIA as well, and I fear that they will be burnt by this deal, which could tip them over the edge once the inevitable selling of VS to BA happens
They should scrap this deal and instead look into merging with AA
If not, then AA should abandon a potentially disastrous merger with US and wait to buy DL out of BK…
Owning 49% of VS does not give any rights or opportunities to transfer VS slots to DL. It's a similar position to SQ, take 49% of the profits, if/when there are any.
Which is why DL are making a mistake in investing into a “basket case” that is VS (no, it’s not too hash a term), they are going to end up like SQ, only this time to could seriously damage the airline
Maybe the CEO’s of DL and AF-KL should read “Branson” (the book by Tom Bower), before continuing to pursue this deal…
Do DL’s shareholders have to agree this deal, if so then they should vote NO!
No it doesn't, it needs the underground shuttle link to be extended from LHR-5 and its satelites to LHR-3 and the new LHR-1/2 and all its satelites. Obviously this would be a long term arrangement once the expansion issue is sorted out. A common travel area arrivals section at LHR-3 would be unnecessary duplication.
They already have an “underground shuttle link” in the form of the Tube and Rail links that serve LHR’s terminals
What they want in the long-term is everything to be at T5 (they should look into demolishing T3 and expanding T5 over that site
Cheaper to buy slots rather than half an airline if increasing New York capacity is the aim. It's already a saturated route, is it 27 flights/day? Is there room for more capacity?
What?, it’s a perfect description of Brian Souter
