Is British Airways Looking Towards A Merger With American Airlines?
News that British Airways, already looking to conclude a merger with Spanish aviation group Iberia, is near closure on a deal with American Airlines has opened up the intriguing possibility of a three way merger. While any formal merger with American Airlines seems some way off, the ongoing talks about a closer relationship seem to be edging towards a future full merger.
It is common knowledge that the groups have been in talks in the past with regards to a merging of the two operations although they stepped back and agreed a collaboration agreement in the face of mounting regulatory hurdles. They are close to agreeing a deal which would see them not only share flight capacity and airlines facilities (as they do now) but also work together on areas such as technology, ticketing and administration.
It is hoped that, due to the terrible trading environment in the sector, the authorities will be a little more understanding of a deal to work more closely together. There is still a serious danger of at least one major airline going under during the current economic downturn although as yet there is no clear favourite.
Share this..
Related stories
Lehman Brothers fallout knocks £50 billion off FTSE100
Who would have guessed that a move which had been flagged late last week could turn into a disaster for worldwide stock markets? Who could have seen the turmoil and knock on affect from the failure of Lehman Brothers to agree a lifeline?
A massive £50 billion pounds was knocked of the value of the UK's premier stock market index as traders ran for the hills after the Lehman Brothe...
How will the MPC react to volatile UK economic indicators?
As we approach the next MPC meeting, scheduled for tomorrow, there is some speculation regarding the potential decision which the committee will come to. While it is highly unlikely that UK base rates will increase in the short to medium term there is an opportunity to reengage the quantitative easing program which grabbed the headlines so many months ago now. However, what would this mean about t...
Read MoreHometrack survey shows house price reductions set to continue
The latest report by Hometrack has highlighted a number of issues which have led them to believe the UK housing market will be under pressure for some time to come. Even though we have seen the average time taken to sell a house reduce over recent weeks and a slowdown in the rate of house price falls, the economy is now the main concern.
Despite a number of initiatives by the govern...
Home repossessions on the rise in the UK
While news that home repossession were up some 71% in the second quarter of 2008 have caused some unrest in the markets, this will be chicken feed compared to the number that will lose their homes before the economy recovers. Just over 11,000 homes were repossessed in total during the quarter but with the Bank of England suggesting that both negative equity and mortgage defaults are set to rise d...
Read MoreAre we moving towards a credit crunch part two?
As the cost of borrowing continues to move higher and higher in international money markets, due to sovereign debt concerns within Europe, friction between North and South Korea and the general malaise in worldwide stock markets there is concern we could be heading towards a credit crunch part two. The cost of finance is vital to the successful recovery of the worldwide stock economy and local eco...
Read More