BA look at long-sought merger with AA

Old Oct 5, 03, 12:13 pm
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BA look at long-sought merger with AA

LONDON, Oct 5 (Reuters) - British Airways Plc (LSE: BAY.L - news - msgs) said on Sunday it would look again at a long-sought merger plan with American Airlines if regulators cleared a takeover of Dutch carrier KLM (Amsterdam: KLM.AS - news) by Air France (Paris: FR0000031122 - news) .

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Old Oct 5, 03, 1:12 pm
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Merger with AA? Or with IB? I'm not sure either is that much of an prospect from a passenger point of view. Neither offers much to BA from a product point of view, and the network of flights is already available through oneworld, with the one transatlantic exception. A merger with CX would be much more exciting...but rather far-fetched. I guess a combined AA/BA would generated some economies of scale, but as they don't seem to have helped AA much in it's current form I'm not sure howe much it would deliver? Anyone better informed than I care to comment?
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Old Oct 5, 03, 2:22 pm
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I would hazard a guess that the whole story is the BA Press Team trying to knock KLM/AF off the sunday business papers. But then, even I know that I am a cynic.
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