Newsstand - BA to join AF/DL?

I guess if this happens, SwissAir and other Qualifilyer partners will be going to OW?

http://biz.yahoo.com/rf/000509/n.html

And airlines that BA owns part of would leave with them: QF, IB etc.

Wow! Interesting report! Does anybody know if BA and AA are having problems - or, why would BA consider leaving OW?

I know that BA is not happy with the governments of UK and US because they wouldn't allow them to fully implement their desired relationship with AA.....

The British working with the French--that should prove to be interesting.

The new BA CEO, Mr. Rod Eddington, has just 2 days ago now made a public committment to AA and OW!

A likely rumour, I'd guess! http://www.flyertalk.com/forum/smile.gif
http://www.flyertalk.com/forum/Forum114/HTML/000007.html

AA's comment:

---AMERICAN'S COMMENT---
"Our four-year-old partnership with British Airways has proven to be a commercial success, despite the unprecedented public scrutiny it has endured, and we expect that success to continue to grow as the partnership broadens. The success of our initial venture is what led us to develop the
oneworld alliance, which has brought benefits to all of its airline members. Rumors about the airline industry come and go. Our strategy is to ignore such rumors and to devote our energies to successful business strategies and outstanding customer service."

Source: AMR Corp

The article smells a bit fishy to me.
BA/AF/DL??? This does not make any sense since this leaves BA without an Asian partner.

Does BA/AF even make sense? Given the proximity of their hubs, LHR and CDG, aren't they competing with each other?

[This message has been edited by seawolf (edited 05-09-2000).]

Even though I think that the chance of this happening is only slightly more likely than US Airways buying American, United, and Delta and becoming the world's largest airline, I truly wish this would happen.

The current AA/BA snafu (no miles on transatlantic flights) is a pain that gives Star a nice lead over oneworld for Atlantic traffic. Since Delta is limited into London, and only Gatwick, I'm sure there would be no problem.

Also, DL/AF is in desperate need for a big partner that'll bring in lots of people. This would benefit DL/AF more than I think it would BA. Plus, it would bring in a variety of carriers such as QF and Iberia, which BA has a stake in.

I don't think it'll happen, but I can hope!

On the comnent of the new BA CEO saying he is committed to oneworld and AA...

I don't think we can take much from this. He wants to keep all his options open, and as his current plan is to stick with AA, he can't burn that bridge. So of course he'd say he is still committed, because if he said it didn't pan out and it was a mess, then BA would need AF/DL more, and BA wants to be in the want postion, not the need.

The more I think about this the more it does not make sense! If BA pulls out of OW, they would have to pay serious penalties(were talking into the 100's of millions). There would be no advantage to joining with AF/DL becuase Delta does not have a huge route structure into London. American has many flights that connect with BA at LHR and LGW. AA and BA are also working on getting limited codeshare approval for routes where they do not directly compete with each other (ie SEA/LHR). What Asian carrier would join this new alliance? Korean???? Fat chance.

But in some ways, it does make sense.

For BA:
1. Delta would probably give elite miles on BA, even from non-hub cities (as DL did with SR,SN and does now with AF). AA fliers have no such incentive to use BA planes from the U.S. to U.K.

2. Delta would codeshare with BA. BA doesn't want to play the discount game (they aim for the high-ticker flyer), but Delta can do this for them without BA having to alter their marketing philosophy.

3. It might relieve the political pressure on the whole LHR situation.

4. It would give BA access to new destinations, like Africa.

For Delta/AF.
1. Duh! Respect for the new alliance.

2. LHR.

3. Australia.

I wouldn't be surprised if BA has some sort of escape clause from OW based on the AA codeshare situation...

If BA joins, it makes you wonder which oneworld partners will stay with AA and which will go with BA. EI, IB and QF would probably go with BA. AY and CX are uncertain whilst LA would probably side with AA.

I think BA should have chosen DL as a partner a long time ago instead of AA. They would have no regulatory hassle. DL only has SIX flights from the UK to the USA each day. And BA would finally be able to code-share extensively in the USA - something it never really has been able to do - except with US, but they're a predominantly E. Coast airline anyway.

I wonder if DL has an escape clause from their 10 year contract with AF?