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BA-AA Merger

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Old 31st Jan 2006, 02:15
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BA-AA Merger

This may have been talked about in other threads but: recent press articles have speculated about a BA/AA merger. Interesting thread about the rumored BA aircraft order. Anyone care to comment? What are the chances of changing foreign ownership rules in US, or a new open skies agreement?How will this impact the average line pilot at either airline?
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Old 31st Jan 2006, 03:33
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At a guess: I doubt that the rules will be changed until the American airline business is in even worse state than it is now.

Airlines are strill considered to be carrying the flag, even when they are owned by shareholders. Politicians still get some kind kick out of them and will not want to change the rules until they really, really have to.

At present, BA doesn't have to merge if it does not want to.
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Old 31st Jan 2006, 08:58
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A couple of pieces in the Observer on this,
In the US Gerard Arpey is hailed as the saviour of the world's largest carrier, American Airlines, which narrowly escaped bankruptcy after 9/11. In Britain, Arpey is the man that British Airways must do business with if it wants to forge an alliance that can compete effectively in the cut-throat world of the international airline industry.
BA and American have been trying to get closer for more than 10 years, but have been frustrated by regulators. Now they are trying again - but as before, the governments of Europe and America must reach an 'open skies' agreement to open up their respective markets - otherwise, no deal.
See http://observer.guardian.co.uk/busin...697005,00.html - don't know how long this is good for.
Also piece on Chap 11 and US airlines linked to above see http://observer.guardian.co.uk/busin...696991,00.html
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Old 31st Jan 2006, 09:00
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In one of Willie's presentations which was summarised in the BA News, he said there would be no merger despite media speculation.

In my opinion, I am glad. I would hate to work for a merged company made from two with such different philosophies and controlled by such different legislation.
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