http://www.unison.ie/irish_independe...&issue_id=9664 BA denies seeking stake in Swiss
BRITISH Airways denied yesterday that it was looking for a stake in struggling Swiss International Air Lines, but continuing speculation about a takeover by a larger rival kept Swiss shares buoyant.
"We are not actively seeking to invest in Swiss," said a spokeswoman for BA. "Our focus is on our core business."
The British flag carrier is spearheading Europe's most ambitious reforms, including job cuts expected to reach 13,000 by September. BA, the leading European member of Oneworld alliance, has a stake in Spanish alliance partner Iberia but for now is not shopping for more.
The Swiss SonntagsZeitung newspaper said on Sunday that BA was interested in a stake in Swiss, while German carrier Lufthansa might be willing to take a controlling interest, reports of which have surfaced repeatedly in the Sunday press, fuelling a jump in Swiss shares.
The loss-making airline is due to publish mid-year results today and it is expected to provide an update on planned cost cuts that are vital to its survival.
A spokesman for Oneworld said it formally invited Swiss to join the alliance last week, pending the Swiss carrier reaching an agreement with BA.
"Swiss asked us to confirm in writing our position and that we have done," Oneworld spokesman Michael Blunt told Reuters.
"In summary, we confirmed once again that Swiss would be welcome to join Oneworld, but first it must conclude a bilateral agreement with our existing member, British Airways." Swiss shares surged almost 12pc yesterday before BA's denial, though turnover was just over $1m as the shares are closely held.
They closed 10pc higher at Sfr13.20.
Swiss chief executive Andre Dose recently met BA officials in London to discuss Swiss joining Oneworld, but analysts say Swiss may first have to carry out planned cuts on routes that overlap with BA.
Swiss was formed after a $2bn bailout last year grafted parts of bankrupt Swissair on to regional carrier Crossair. (Reuters)