Ba & Ei?
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Joined: Oct 2002
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From: somewhere near LTN
Ba & Ei?
Now that the Irish government will be selling a majority stake in EI is this not the perfect opportunity for Mr Walsh to purchase it & operate a shedload of European routes on BA's behalf ex-LHR?
Simple really - purchase an existing low cost carrier & bring it in-house. Could it be done?
cheers
FF
Simple really - purchase an existing low cost carrier & bring it in-house. Could it be done?
cheers
FF
Joined: Dec 1999
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From: UK
Intuitively, an independent airline or affiliate would be able to apply for more slots at Heathrow despite flying for that airline - such as BMed is able to do - therefore increasing slot penetration at Heathrow and opportunities on more profitable routes - or lowering the cost base on existing ones.
Whether BA has the ability to acquire a stake is another matter - though its debt burden is now low enough to allow greater borrowing to fund acquisitions and purchases, it may be the case that with an impending reduction in capital when pension liabilities are brought on balance sheet that an investment of that kind might be more of a burden than not.
Ideally an acquisition should be able to make use of economies of scale - what if any could be made by such appear low as the workforces would ultimately demand integration and reversal of those cost benefits. If they acquire just a stake, they cannot control it to do as you suggest; if they acquite a majority stake and hence control, the benefits of slot acquisition are negated. A transferral of routes down to a lower cost base at the same flying base would also negate many union agreements.
So maybe - if there was a detailed analysis performed, but probably not.
Whether BA has the ability to acquire a stake is another matter - though its debt burden is now low enough to allow greater borrowing to fund acquisitions and purchases, it may be the case that with an impending reduction in capital when pension liabilities are brought on balance sheet that an investment of that kind might be more of a burden than not.
Ideally an acquisition should be able to make use of economies of scale - what if any could be made by such appear low as the workforces would ultimately demand integration and reversal of those cost benefits. If they acquire just a stake, they cannot control it to do as you suggest; if they acquite a majority stake and hence control, the benefits of slot acquisition are negated. A transferral of routes down to a lower cost base at the same flying base would also negate many union agreements.
So maybe - if there was a detailed analysis performed, but probably not.
Joined: Apr 2002
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From: brighton
Ba has alot going on at the moment ranging from a New Chief Executive and New Board Members to the planned changes to LGW. Who knows what BA will do ? EI are no frills ba is still a Full Frills Airline and depends on Willie Walsh if he likes Subsidaries and Franchises?
What about the Oneworld Alliance?
What about the Oneworld Alliance?
Joined: Mar 1999
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From: Ashbourne Co Meath Ireland
would be able to apply for more slots at Heathrow
The Irish Gov't will be watching that very carefully, they won't be happy to see LHR lost as a link to Ireland, but at the same time, I can see the time coming when there will be changes to the way that LHR-DUB operates, and there are also a significant number of slots used to ORK & SNN.
Joined: Sep 2002
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From: Middlesesx
Many of your comments are flawed. BA has taken over CityFlyer, British Regional plus a number of others and our record is grim. The two mentioned came to us with good balance sheets and efficent operations. Visit what is left of them and you find BA's medling has as good as ruined them. Surely we do not need anymore.
