BA/AA Merger talks back on

[FL390]

BA and AA Executives are reportedly trying to get approval for a merger with regulators in Europe, UK and US.

Now, would BA buy American out or the other way round or what? ALso heard that KLM merger talks could be close to a deal. This would be quite interesting if BA bought AA and KLM! :) Doubt if either of them would happen though!

[DPIT]

BA cannot buy AA...nor can AA buy BA! There is a limit to the amount of foreign ownership which is 25% outside the EU and 49% inside the EU (I think I am correct for the EU figure).

I think that you mean a 'proper' alliance in terms of codesharing, co-operation on schedules and pricing, and possibly profit sharing.

Just trying to get to the same place as LH/UA are!!!

[FL390]

Thanks for that DPIT. I thought that it would be a bit odd that one company suddenly buys the other out considering that they are such big carriers individually as well.