Monday, March 27, 2006

BA: No Merger w/ Iberia - For Now

The head of British Airways' Spanish and Portuguese operations has ruled out a merger with fellow oneworld alliance carrier Iberia, but when asked if such a thing might occur down the road said, "There's a clear trend for consolidation. When will we arrive at this point? That's the million dollar question." BA and American Airlines collectively own 10% of the Spanish carrier.

I don't see a 'complete' merger in the works at all. Both are flag carriers for their respective countries, so that has to be taken into effect. They might be able to do a merger à-la-Air France and KLM, who are now one entity on paper but still two distinct airlines.

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