BA/AA - are people really fooled?

[akerosid]

Just looking through the papers this morning, it looks as if the media, en masse, is accepting the BA/AA deal as dead. It just seems strange to me, that after five years' work, the two sides just give up the ghost at one hurdle.

I had understood that Tony B. had spoken to GB about it and given Tony's rather good reputation, something can surely be done. Surely the Pres has the power to intervene and one can only assume that AA has a good lobbying position in Washington too?

The whole thing just has an air of "unreality" about it. And what about the four airlines who would have got access to LHR under this deal?

Also, aren't there supposed to be about 20,000 extra slots p.a. as a result of T5 approval - about 54 daily; surely these and even slots likely to be created as a result of R3 - be taken into account, particularly if the deal is to be phased in over a long period.

[moleslayer]

They all threw the towel in a little to sharpish didn't they? Nobody's fooled,the phone lines beneath the atlantic will be buzzing this weekend.

And what about Sir Bish? is he just sitting quietly at home listening to a little relaxing opera,I think not. <img src="smile.gif" border="0">

[ 27 January 2002: Message edited by: moleslayer ]

[ 27 January 2002: Message edited by: moleslayer ]</p>

[moleslayer]

From todays 'Chicago Tribune'.....

"The conditions laid down by the U.S. government do not make sense for either company. We will not acquiesce to unrealistic and, in our view, unnecessary demands. For us, the price is not just right," they said.

Michael Whitaker, United Airlines' vice president of international operations and regulatory affairs, said he does not believe that "open skies," or the American/British Airways deal and the United/British Midlands deal, are dead.

"What are the options for American and BA? They will have to make it work," Whitaker said. "This [rejection] is just a step in the process."

. .Copyright © 2002, Chicago Tribune

[crewrest]

I would have thought Dominic O'Connell would have had something to say about it in today's London Sunday Times, he usually seems well informed.

[Donkey Duke]

Face it, AA and BA are scared of the competition.. .If the alliance was that important and that beneficial to AA and BA, they will eventually give in. Then let the games begin.

Thanks. Donkey Duke <img src="cool.gif" border="0"> <img src="cool.gif" border="0">

[bjghi3]

I dont know what to think. However, I do think that somehow, something has to happen, pronto. Because of the newly signed France/US openskies and the anti trust immunity for DL/AF. If the UK and BA wait until the EU to negotiate a europe wide openskies, it will also be on worse terms for them. Also, with each passing month, they will feel more and more squeezed by DL/AF and others. I think that it is becasue of this that the US is holding the deck of cards, not the UK/BA with LHR.. .As things stand now, BA will have to rely on O&D traffic, as their connecting traffic will continue to diminish thanks to FRA, BRU, AMS and now CDG.. .I have no idea how long it will take for BA and the UK to realize this.