BA & AA to aquire stake in Iberia?
Oct 29, 1998 | 6:45 am
#1
Original Poster
Original Member
Join Date: May 1998
Location: London,UK. Ok, about 100 miles from London really, but how many Americans know where Market Harborough is?
Posts: 409
BA & AA to aquire stake in Iberia?
It looks like BA & AA are about to (mid November?) aquire a stake in Iberia from the Spanish government.
Iberia may also aquire a very small stake in BA & AA.
A clear sign that Iberia is shortly to join OneWorld if ever there was one.
I wonder how StarAlliance will respond? Perhaps Virgin will join them!
MF
Iberia may also aquire a very small stake in BA & AA.
A clear sign that Iberia is shortly to join OneWorld if ever there was one.
I wonder how StarAlliance will respond? Perhaps Virgin will join them!
MF
Oct 29, 1998 | 3:32 pm
#2
Commander Catcop
Join Date: May 1998
Posts: 10,259
It's great that you are back with us, Merry
Flyer!
You (or the departed Rudi) could maybe best
give imput on this observation by me: Are the
European continent airlines losing money? Maybe that's why Iberia's offering the big AA and BA a stake. I have a feeling we'll hear
more of this "alliances" soon.
But I don't think Sir Richard will let anyone control his "Virgin." He's too off the beaten path for that. And imagine those board
meetings for Star Alliance with Sir Richard
Crashing in from the roof on his balloon!
CATMAN
Flyer!
You (or the departed Rudi) could maybe best
give imput on this observation by me: Are the
European continent airlines losing money? Maybe that's why Iberia's offering the big AA and BA a stake. I have a feeling we'll hear
more of this "alliances" soon.
But I don't think Sir Richard will let anyone control his "Virgin." He's too off the beaten path for that. And imagine those board
meetings for Star Alliance with Sir Richard
Crashing in from the roof on his balloon!
CATMAN
Oct 30, 1998 | 1:06 am
#3
Original Poster
Original Member
Join Date: May 1998
Location: London,UK. Ok, about 100 miles from London really, but how many Americans know where Market Harborough is?
Posts: 409
Most of the European Airlines are owned by their respective governments as National Flag Carriers and therefore it traditionally hasn't mattered wether they have made a profit or not.
The main exception to this is of course BA which was privitised years ago, and is doing very nicely thank you.
However, the EC has directed that governments can no longer subsidise their national airlines, so there are alot of loss-making airlines who are likely to be sold (including Air France, Iberia, Alitialia etc).
It is interesting times!
And by the way, it is always good to be back.
MF
The main exception to this is of course BA which was privitised years ago, and is doing very nicely thank you.
However, the EC has directed that governments can no longer subsidise their national airlines, so there are alot of loss-making airlines who are likely to be sold (including Air France, Iberia, Alitialia etc).
It is interesting times!
And by the way, it is always good to be back.
MF
Oct 30, 1998 | 6:53 am
#4
A FlyerTalk Posting Legend
Join Date: May 1998
Location: Digital Nomad Wandering the Earth - Currently in VIENNA, AUSTRIA!
Posts: 61,926
Merry:
If the EC can no longer subsidize their national carriers, what does this mean for Airbus? Is it now competitive enough to survive without EC national carriers operating deeply in the red buying their planes exclusively?
Without getting into the whole Boeing/Airbus debate, I remember hearing that Airbus survived not only on French/British (hey, get a load of that combination, Merry) direct subsidies, but also on the indirect subsidies of national carriers that couldn't afford it buyng airbus planes buying them thanks to airline subsidies...
If the EC can no longer subsidize their national carriers, what does this mean for Airbus? Is it now competitive enough to survive without EC national carriers operating deeply in the red buying their planes exclusively?
Without getting into the whole Boeing/Airbus debate, I remember hearing that Airbus survived not only on French/British (hey, get a load of that combination, Merry) direct subsidies, but also on the indirect subsidies of national carriers that couldn't afford it buyng airbus planes buying them thanks to airline subsidies...
Oct 31, 1998 | 1:30 am
#5
Original Poster
Original Member
Join Date: May 1998
Location: London,UK. Ok, about 100 miles from London really, but how many Americans know where Market Harborough is?
Posts: 409
Good point! Airbus has indeed to become profitable in its own right. I think it is by the year 2000 (but I may be 12 months out either way on that).
The EC has a habit of turning a blind-eye to alot of its deirectives though, so don't be suprised if this doesn't really happen.
Look at the recent change of BA from Boeing to Airbus - do you think it was a conincidence that BA chose the European Airbus Consolrtium at the same time as the EC was considering the terms for the BA/AA merger? I think not.
Air France is another example. They are still heavily supsidised and the EC keeps on turning a blind eye or making an exception.
MF
The EC has a habit of turning a blind-eye to alot of its deirectives though, so don't be suprised if this doesn't really happen.
Look at the recent change of BA from Boeing to Airbus - do you think it was a conincidence that BA chose the European Airbus Consolrtium at the same time as the EC was considering the terms for the BA/AA merger? I think not.
Air France is another example. They are still heavily supsidised and the EC keeps on turning a blind eye or making an exception.
MF
Oct 31, 1998 | 8:33 am
#6
Suspended
Join Date: May 1998
Posts: 92
Switzerland is not in (the) Europe(ean community=EC), and - yes - you will still need after 2001 seperate swiss currency when travelling europe and you don't want to miss Switzerland, and - yes - you will still be able to do duty-free-airport-shopping in Zurich/Basel/Geneva/Lugano/Berne, NOT SO ANYMORE in the EC if you travel from one EC-country to another - starting 1st-jan-99. So there will be more reasons to visit swiss airports in the very near future than just our chocolates, meeting Rudi/IDUR or laundering money.
Swissair is not subsidised (but had some monoplistic advantages from the swiss authorities for bilateral agreements with other nations/carriers). Swissair did buy a (management-wise) minority of 49% in Sabena to have a carrier who's base is in the EC.
The EC is momentarily fighting the egoistic bilateral flight-agreements some of their member-countries have made (EC-reason to fight: the individual EC-countries made those agreements mainly to have an individual advantage in comparison to neighbour-countries/airports/air-carriers which is against common/unified EC-interests). The EC want's a liberized marked as a whole - and consumers want that to - a ticket for a return flight from Munich to Frankfurt on LH still often costs more than a LH-return-ticket Munich - Frankfurt - New York (with the same ticket-restrictions, f.e. Sunday-rule, or whatever).
Swissair is not subsidised (but had some monoplistic advantages from the swiss authorities for bilateral agreements with other nations/carriers). Swissair did buy a (management-wise) minority of 49% in Sabena to have a carrier who's base is in the EC.
The EC is momentarily fighting the egoistic bilateral flight-agreements some of their member-countries have made (EC-reason to fight: the individual EC-countries made those agreements mainly to have an individual advantage in comparison to neighbour-countries/airports/air-carriers which is against common/unified EC-interests). The EC want's a liberized marked as a whole - and consumers want that to - a ticket for a return flight from Munich to Frankfurt on LH still often costs more than a LH-return-ticket Munich - Frankfurt - New York (with the same ticket-restrictions, f.e. Sunday-rule, or whatever).
