PPRuNe Forums - View Single Post - BA to buy Virgin Atlantic - Sunday Times says
Old 28th May 2003, 22:36
  #26 (permalink)  
TwinAisle
Scourge of Bad Airline Management!
 
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Meanwhile, back in the real world

For my sins, I work on the business end of airlines, and a few thoughts seem to be to be blindingly obvious...

VS have 747-400s, and 340s of various variant..... BA are doing their best to cut capacity, are looking to offload a few 747-400s, and want 340s on the books about as much as they want the plague. So why would they want the planes?

VS have a relatively tiny number of slots at LHR compared to BA, or for that matter, compared to BD. This would be an expensive way of getting relatively few slots - there are way more sensible targets for BA to buy if they are after slots.

The chances of our lords and masters at the MMC even reading a proposal to merge the UK's #1 and #2 airlines are about as high as us all seeing the Queen's bum on telly tonight.

BUT - BD and VS makes sense. It would provide what both sides want:

- a shorthaul network to feed VS;
- some critical mass at Heathrow and a more balanced med/long haul fleet for both (remember the CCQ on 330/340?);
- a way for SM to realise his millions, and perhaps leave the regional business to play on its own;
- baby and VEX are not in the equation, imho. Baby is going for its own AOC - ask yourself why? VEX is pretty standalone anyway - my guess is they will both be exluded from a deal that will tie up VS and BD Mainline/longhaul...

BA are mouthing off to the press because they are rattled. BDVS would give them a real headache, giving them what they have never had to face - serious competition on the long-haul (and the North Atlantic in particular) backed up by a great domestic/Euro feeder network.

You heard it here first - BD VS will happen, Baby will fly solo, regional will become the "new" British Midland.... and the whole BD VS thing will go into Star.

TA
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