AIRLINE NEWS
Saturday, December 27, 2008
BA and Qantas merger talks fail
The pair revealed earlier this month that they were in discussions about joining forces through a dual-listed company structure.
But in a statement today, BA and Qantas said it had not been possible to come to an agreement over the key terms of the merger. They did not provide further details.
independent.co.uk
Labels: British Airways, merger, Qantas
Monday, August 11, 2008
BA will give up hundreds of U.S. flights to forge American Airlines pact
The slots are worth tens of millions of pounds, but BA chief executive Willie Walsh sees it as a price worth paying to secure a three-way tie-up with AA and Spain's Iberia.
The alliance would give the joint venture huge dominance in transatlantic flights.
It would have 46 per cent of all the slots and handle 62 per cent of all transatlantic passengers.
On one route - Heathrow to Houston - the combined group would control 100 per cent of all scheduled flights.
BA will meet US Department of Justice officials early this week and offer to give up the flights.
In return, the airline hopes to win immunity from prosecution under US anti-monopoly laws, allowing it to press ahead with its link-up without the risk of a lengthy legal battle.
When BA last tried a deal with AA in 2002, it was told it would have to surrender 16 flights a day to win anti-trust immunity.
That figure was deemed too high at the time, but this time round BA hopes to convince US authorities a much lower figure will satisfy their concerns.
BA is planning a full merger with Iberia and wants a deal to share costs and revenues with AA.
Walsh believes such a three-way venture is the only way airlines will be able to survive at a time of soaring fuel costs and falling demand.
He is shuttling between London and Washington to lay the groundwork for a successful application. This will be the third attempt by BA to link up with AA.
BA will run into tough opposition from rival Virgin Atlantic, which has pledged a full-blown campaign of opposition.
Virgin Atlantic chief executive Steve Ridgway said: "This alliance would give them a stranglehold on Heathrow-US flights. BA and AA will not face enough competition on their huge network to stop them raising prices."
The open skies agreement signed last year between Britain and the US means the domination of the transatlantic route by BA, American, Virgin and United has gone.
A further six US airlines have since been allowed to land at Heathrow.
Even more significant from BA's point of view is the fact that its rivals - Northwest Airlines, Delta Air Lines, Air France, KLM and Alitalia - have all won anti-trust immunity.
Faced by such a huge challenge Virgin is looking to merge with another airline. Its first choice would be to buy BMI, which has 11 per cent of all the slots at Heathrow.
Source: dailymail.co.uk
Labels: american airlines, British Airways, merger
Sunday, August 03, 2008
British Airways seeks to seal alliance with American Airlines
Willie Walsh, BA's chief executive, said he expected final preparations for the deal to be complete within a fortnight, with an application to US regulators to follow shortly afterwards. "We want to move on this as soon as possible," he said.
BA, which revealed sharply reduced profits last week, has tried to consummate its marriage with American Airlines for more than a decade. It first sought the permission of US regulators in 1997, then again in 2002.
The two airlines want to be exempt from America's tough anti-competition laws. This would allow them to run their transatlantic operations as a single company, with co-operation on pricing and schedules. A full merger of the companies is made almost impossible by America's strict airline-ownership laws.
Regulators rejected earlier attempts at an alliance because the arrangement was judged to be anti-competitive.
The deal with American may be expanded to bring in two other airlines, Iberia of Spain and Continental of the US. BA and Iberia last week announced plans for a full merger, details of which are likely to be announced in a few months.
Meanwhile, Walsh condemned government plans to drop air-passenger duty in favour of a flight tax.
"Aviation already more than covers the cost of its greenhouse gases through taxation and duty," he said. "This is nothing more than a revenue-generating exercise by the government."
Walsh said he supported aviation's inclusion in the European emissions-trading scheme, rather than the imposition of blanket taxes.
Source: timesonline.co.uk
Labels: american airlines, British Airways
Friday, July 04, 2008
BA to seek clearance for AA and Iberia merger
The deal would allow the companies to combine nearly all aspects of their operations, including sales, purchasing and marketing, leading to lower costs and greater economies of scale. Legal sources in the United States said that a submission to the US Department of Transport was expected as soon as next week.
The operational partnership may also provide a foundation for a full merger of the carriers should foreign ownership rules in the United States and Spain change. BA said two months ago that it was in talks with AA and Continental, another American carrier, about creating an alliance, but Continental has since walked away.
BA and AA have continued their discussions and are believed to have invited Iberia - in which BA has a 13 per cent stake - to be the third member. BA said last night that its talks with AA were continuing but a decision had yet to be made.
If BA and AA do seek regulatory approval to merge their operations, it would be their third attempt, having been blocked by regulators in 1998 and 2001. The authorities in Britain and America were concerned that the
two carriers would have a dominant position on many North Atlantic routes and demanded that the airlines sell Heathrow slots to reduce their traffic.
However, sources familiar with BA's discussions said that the airline was more optimistic of gaining approval this time because of the liberalisation of air travel rules between Europe and the US. In addition, the dire state of the airline sector, which is striving to cope with high fuel prices, may force regulators to accept the deal.
AA lost $328 million (£164.7 million)and Iberia €28.3 million (£22.5 million) in the first quarter of this year. BA has given warning that it may struggle to stay profitable this year.
An analyst said: "There is a lot of pressure on BA and AA to do this deal and cut costs. It's inevitable." Another added: "Including Iberia makes sense, as it would give the alliance a strong position across both the North and South Atlantic."
Meanwhile, BA said yesterday that it had bought L'Avion, a French business-class only airline, for £54 million. L'Avion is the last of the survivors of the rush two years ago to launch all-business-class transatlantic services. Silverjet, MaxJet and Eos have all gone out of business.
L'Avion will be merged with BA's new OpenSkies service, which flies from Paris to New York. The purchase price includes L'Avion's £26million in cash and two Boeing 757 aircraft.
Source: timesonline.co.uk
Labels: american airlines, British Airways, Iberia, merger
Thursday, July 03, 2008
British Airways Lands L'Avion
The British carrier said on Wednesday it had bought a two-plane airline from France, called L'Avion, for a total cost of $107.6 million. The small deal will bolster British Airways' OpenSkies subsidiary, which launched last month with only one plane; once regulatory authorities clear the purchase, the carrier will run three daily flights between Newark and Paris Orly.
Shares in British Airways fell 1.7%, to 204 pence ($4.06), during afternoon trading in London, in line with the sector.
"The driver behind this is that the long-term survival of L'Avion is doubtful," said Geoff van Klaveren, analyst with Exane BNP Paribas. The privately-held business-class airline is reportedly unprofitable, which would not be surprising given the record price of fuel and the decline in demand for air travel.
The chief executive of L'Avion, Marc Rochet, said that the financial health of L'Avion was excellent; he told Forbes.com that the airline's cash position prior to the buy-out was 33 million euros ($52.4 million). His airline certainly has met a better fate than some: British business-class carrier Silverjet collapsed into bankruptcy last month, sacking all 420 staff. American equivalents like MAXjet Airways and EOS had filed for bankruptcy before then. (See "No Silver Lining For Silverjet")
A spokesperson for British Airways said that its OpenSkies venture hoped to reach profitability within the first three years of operation, and that the new acquisition did not change the time-frame.
Although there are almost no airlines similar to L'Avion available to whet British Airways' appetite going forward, the difficult business environment will likely see more carriers collapse into the arms of larger rivals.
"It's certainly an example of consolidation in the European industry," said Douglas McNeill, analyst with Blue Oar Securities. "My view would be that there will lots more to come."
Source: forbes.com
Labels: British Airways, l'avion, takeover
Friday, June 20, 2008
British Airways Subsidiary Begins Paris-U.S. Flights
The first plane operated by the U.K. carrier's OpenSkies subsidiary took off at 10:49 a.m. in Paris and is due to arrive at New York's John F. Kennedy airport at 1:25 p.m. eastern time.
British Airways is adding flights even as a slowing economy and surging oil prices cause the collapse of other carriers. Chief Executive Officer Willie Walsh said yesterday that the new airline's costs will be kept low through joint purchasing with its London based parent, Europe's third-largest airline.
"While the economic climate has worsened in recent months, we believe that OpenSkies can compete effectively," Walsh said in a statement. "It has a low cost base and support from British Airways in key areas such as sales and marketing. This differentiates it from some new airlines that have failed recently which were operating in isolation."
British Airways rose 0.25 pence, or 0.1 percent, to 226 pence, paring the stock's declines this year to 27 percent and valuing the company at 2.61 billion pounds ($5.15 billion).
Business Focus
OpenSkies will initially operate from Paris Orly airport using a single Boeing Co. 757s carrying as many as 82 passengers. The aircraft have 24 business-class berths that convert to beds, with 28 seats in premium economy and only 30 in economy. Upscale seating accounts for about half of British Airways' revenue.
OpenSkies is the only airline created specifically to take advantage of the U.S-European Union treaty of the same name, which allows carriers to fly between the U.S. and any of the bloc's nations instead of just their home countries.
At least 24 carriers have failed or entered bankruptcy this year, according to the International Air Transport Association, among them business-only carriers Silverjet Plc and Eos Airlines. The industry may report annual losses of $6.1 billion, the worst since 2003, hurt by slowing economies and a 50 percent jump in oil prices in six months, the trade body estimates.
"The timing's unfortunate but BA probably have one of the better brands in the U.S.," said Stephen Furlong, an analyst at Davy Stockbrokers in Dublin who has the U.K. airline on his focus list. "But ultimately they'll still have to generate a return."
Dale Moss, managing director of the new airline, said in a statement today that it aims to provide value, service and comfort that will "delight" customers.
Expansion Plans
OpenSkies plans to have six planes by the end of 2009, all from its parent's 757 fleet, and is considering flying to the U.S. from Amsterdam, Brussels, Frankfurt and Milan. British Airways has spent 17 million pounds on the unit, it disclosed in accounts for the year ended March 31. The new carrier got takeoff slots at Orly through an agreement with L'Avion, which also operates from the Parisian airport to New York and is the only remaining independent business-class carrier across the Atlantic.
Establishing a subsidiary in Paris is also a response to competition at British Airways' London Heathrow hub after the introduction of the Open Skies treaty in March ended a lock that it and three other carriers had on U.S-Heathrow services.
American carriers Delta Air Lines Inc., Continental Airlines Inc. and Northwest Airlines Inc. have begun Heathrow flights. The influx means capacity between the U.S. and Europe's busiest airport is up 21 percent this summer compared with a year earlier, according to London-based consultant Aviation Economics.
Defensive Move
"OpenSkies is a defensive move by British Airways," said Davy's Furlong. "It seems to be a case of "you came into my market, so I'll come into yours.""
British Airways is Heathrow's biggest carrier, with 41 percent of slots at an airport that's already operating at 99 percent of government-permitted flight capacity.
Air France-KLM Group, Europe's biggest airline, has begun flights from Heathrow to Los Angeles under the new treaty as part of a revenue-sharing partnership with Delta. Deutsche Lufthansa AG, the region's No. 2, bought a stake in JetBlue Airways Corp. in January, giving an additional partner to help steer U.S. customers to its trans-Atlantic flights. The German carrier also says it may exercise an option to buy BMI, the second biggest holder of slots at Heathrow, by the middle of next year.
Source: bloomberg.com
Labels: British Airways, OpenSkies
Saturday, May 24, 2008
BA's Paris-New York service opens for business
The Paris-to-New York service will begin flying on June 19 with the threat of crippling industrial action still hanging over its owner.
BA pilots voted overwhelmingly to strike over the new carrier, which they claim is a stalking horse for imposing worse terms and conditions. The British Airline Pilots' Association (Balpa) had appealed to the high court to rule on whether any industrial action was legal - but today dropped the claim. A lawyer for Balpa said it would be "out of its mind" to pursue industrial action.
The airline is BA's riposte to the competitive threat posed by a treaty liberalising transatlantic air travel, also called Open Skies, which allows any EU-based carrier to fly to the US and vice-versa.
OpenSkies officially opened for business this morning by offering tickets on the first Paris Orly to New York JFK flights. It will offer business class flatbed seats at $1,700 (£862) for a one-way journey, with premium economy costing $700 and economy costing $500.
Robert Boyle, BA's commercial director, said OpenSkies, which will fly one plane decorated with BA livery, is a genuine departure from other BA services, starting with the fact that under the old transatlantic flight agreements BA was barred from operating US flights from continental Europe.
The 82-seater Boeing 757 plane will also have a new cabin layout, with the long-term possibility of turning the subsidiary into a business class-only carrier to rival the likes of Silverjet, which operates a first class-only service from Luton airport.
"Our real aim is that we are targeting the premium end of the market," said Boyle, who confirmed that BA will operate the service in tandem with L'Avion, a French business class-only carrier.
BA also warned that negotiations on a second stage of the Open Skies treaty have been a damp squib so far. The European commission wants to build on the first agreement with the lifting of ownership restrictions for EU and US carriers. Currently, an EU carrier can own no more than 25% of a US airline, while a US airline's shareholding in a European counterpart is limited to 49%.
John Wood, BA's negotiator in the Open Skies talks, said: "The US team does not necessarily subscribe to the ambition of a full open aviation area." He added that the first stage of the treaty gave the US carriers everything they wanted, including access to Heathrow airport, and very little to EU airlines.
"We were disappointed that the EU did not get a better deal and we did not find it edifying that both sides are celebrating a 'magnificent' achievement," he said. However, Wood said he was "optimistic" that a deal can be done on ownership following the establishment of the Transatlantic Economic Council, a joint EU-US body that is expected to put pressure on the US to loosen shareholding guidelines.
Source: guardian.co.uk
Labels: British Airways, l'avion, open skies deal, OpenSkies
Monday, May 19, 2008
British Airways will ground part of its fleet over rising fuel cost
Confirmation of the move, from chief executive Willie Walsh, comes as analysts warn BA may only break even or worse for the next two years, despite having reported one of its best year's trading last week.
The sudden reversal has been caused by rapidly rising fuel prices - jet fuel went through the $1,300 a tonne mark last week - and sluggish demand.
BA has already selectively slashed fares across the Atlantic, offering returns to New York for £249, a base fare of £30 once taxes and fuel surcharges are stripped out. "It is a bloodbath," said one industry executive.
Scheduled airlines rarely ground aircraft, preferring to keep their expensive fleets in the air, although Ryanair has kept planes on the ground during slack periods. Walsh said: "You should certainly expect us to do that this winter."
The airline would park its oldest, least fuel-efficient aircraft. Walsh said this would be likely to include its older Boeing 747s, 767s and 737s.
BA last week reported strong annual results for 2007-8, hitting its long-held goal of a 10% profit margin, paying staff £35m in bonuses and the first dividend in seven years.
Walsh did not take his £700,000 bonus, saying it was not appropriate in the wake of the chaotic opening of Heathrow's terminal 5.
The fall-out from the T5 debacle will dent BA's figures this year. The company has guided analysts to expect a hit of a further £40m-£50m on top of the £18m in the last financial year.
Half of the hit would be in extra costs, half in lost revenue. Walsh told analysts that T5 was working smoothly, although the moves of additional flights to the terminal would still be later than first planned.
Fuel will be the biggest headache for BA. If oil continues at $120 a barrel, BA's profits could be wiped out this year. Chris Avery, analyst at JP Morgan, said that if oil remained above $110 a barrel, "investors need to be very conscious that BA could make a loss for one or both of the next two years".
BA is hoping tough times will help it take the lead in industry consolidation. Walsh said that he had resumed negotiations with American Airlines and Continental Airlines of the US with the aim of creating a transatlantic alliance.
Previous attempts have been rebuffed by American regulators, but Walsh said he was hopeful the difficult trading environment would clear the way for a deal. Pilots begin a legal challenge to BA's plans to start an "airline within an airline" tomorrow. The company wants to start flights between Paris and New York next month with a new subsidiary called Open Skies.
The British Airline Pilots Association does not oppose the services, but is against the planned use of flight crews from outside the main BA pilot group.
Pilots voted in favour of striking over the issue earlier this year, but they have put the action on hold pending this week's High Court challenge.
Labels: British Airways, fuel
Sunday, May 18, 2008
New 'OpenSkies' carrier cleared for takeoff
The carrier, which calls itself a "premium" airline and offers codesharing with French-based L'Avion, said it received approval from the US Department of Transportation (DOT).
It claims to be the first airline created on the basis of the US-European Union open-skies pact that allows carriers increased access to each other's markets.
"We are delighted to receive approval for take-off and sincerely appreciate the DOT's efficiency and careful consideration in reviewing our application," said Dale Moss, managing director of OpenSkies.
"As the first airline to be created as a result of the Open Skies agreement, this is a huge step forward as we work to make history and set a new industry standard across the Atlantic. We look forward to bringing travelers an intimate, personalized and premium travel experience between Paris and New York starting in just a few weeks."
The company said it will start taking bookings next week via its website www.flyopenskies.com or by phone, and through travel agents.
OpenSkies will use a Boeing 757 aircraft that is configured to allow the seats to fold into full beds in business class.
It plans to serve additional routes from European cities including Amsterdam, Brussels, Frankfurt and Milan to New York.
Source: afp.google.com
Labels: British Airways, New York, OpenSkies, Paris
Sunday, May 11, 2008
OpenSkies gets OK to launch from Paris Orly-New York JFK
timesonline.co.uk
Labels: British Airways, New York, OpenSkies, Paris
Sunday, April 13, 2008
Airlines fly off the handle at BA's T5 delay
telegraph.co.uk
Labels: British Airways, Heathrow
Thursday, April 03, 2008
British Airways gets Italy's help in returning misplaced luggage
nytimes.com
Labels: British Airways, Heathrow
Monday, March 03, 2008
BA and Virgin to pay out refunds
news.bbc.co.uk
Labels: British Airways, fuel, Virgin Atlantic
Saturday, February 02, 2008
BA to launch business-only US flights
guardian.co.uk
Labels: British Airways, business class, London, New York
Friday, January 18, 2008
Airliner crash-lands at Heathrow
All 136 passengers and 16 crew escaped from the British Airways flight BA038 from Beijing. Eighteen people have been taken to hospital with minor injuries.
news.bbc.co.uk
Labels: British Airways, crash, Heathrow
Tuesday, January 15, 2008
BA to launch 'open skies' airline
news.bbc.co.uk
Labels: British Airways
Sunday, November 04, 2007
BA sees pre-tax profits soar
ukpress.google.com (page not found)
Labels: British Airways, profit
Friday, October 26, 2007
Easyjet agrees to buy GB Airways
news.bbc.co.uk
Labels: British Airways, EasyJet, GB Airways
Friday, October 19, 2007
British Airways urges American Airlines tie-up
uk.reuters.com
Labels: Air France, american airlines, British Airways, Delta
Wednesday, October 17, 2007
Air France, Delta to target Heathrow-U.S. routes
uk.reuters.com
Labels: Air France-KLM, British Airways, Delta, Heathrow, US
Tuesday, October 16, 2007
Two aircraft collide at Heathrow
news.bbc.co.uk
Labels: British Airways, collide, Heathrow, srilankan airlines
Friday, September 28, 2007
British Airways ditches Boeing jumbo for Airbus A380
ibtimes.com
Labels: A380, Boeing, British Airways
Saturday, September 22, 2007
British Airways abandons Zimbabwe route
theage.com.au
Labels: British Airways, zimbabwe
Friday, September 21, 2007
British Airways to suspend Detroit-London flights
reuters.com
Labels: British Airways, detroit
Friday, August 10, 2007
BA suggested for Shannon routes
irishtimes.com
Labels: Aer Lingus, British Airways, shannon airport
Sunday, August 05, 2007
BA tried to cover up being worst for losing passengers' luggage
business.timesonline.co.uk
Labels: British Airways, luggage
Saturday, August 04, 2007
BA rises above troubles as earnings hit £289m
www.scotsman.com
Labels: British Airways, profit
Thursday, August 02, 2007
BA's price-fix fine reaches £270m
news.bbc.co.uk
Labels: British Airways, fined, fuel
Wednesday, August 01, 2007
Probe after BA planes collide at Heathrow
uk.news.yahoo.com (page not found)
Labels: British Airways, collide, Heathrow
Monday, July 23, 2007
MPs attack British Airways for 'risible' attitude to carbon offsetting
independent.co.uk
Labels: British Airways, carbon
Tuesday, May 29, 2007
British Airways Shares Rise on Takeover Speculation
bloomberg.com
Labels: British Airways, private-equity, shares
Friday, May 18, 2007
British Airways' Q4 profits plunge
cnn.com (page not found)
Labels: British Airways, fourth quarter, loss
Saturday, April 28, 2007
BA increases fuel surcharge
guardian.co.uk
Labels: British Airways, fuel, surcharge
Monday, April 23, 2007
BA considers Iberia takeover move
bbc.co.uk
Labels: British Airways, Iberia, takeover
Wednesday, April 18, 2007
BA voted airline of the year
guardian.co.uk
Labels: airline of the year, best airline, British Airways
Tuesday, April 17, 2007
British Airways Cabin Crews Approve Pay Contract
bloomberg.com
Labels: agreement, British Airways, pension
Monday, March 05, 2007
BA cancels 1000 flights to cut 'no frills' losses subsidiary
independent.co.uk
Labels: BA, BA Connect, British Airways
British Airways Shares Slump on Open-Skies Accord
bloomberg.com
Labels: British Airways, European Union, open skies deal
Sunday, March 04, 2007
BA and Virgin knock open sky deal
bbc.co.uk
Labels: British Airways, EU, open skies deal, Virgin Atlantic
Tuesday, February 13, 2007
BA grants passengers temporary baggage reprieve
guardian.co.uk
Labels: BA, British Airways, luggage
Thursday, February 08, 2007
BA to charge £240 for extra bag
bbc.co.uk
Labels: BA, British Airways, luggage
Monday, February 05, 2007
BA cabin crew accuse T&G union boss of 'selling out' over strike
independent.co.uk
Labels: British Airways, strike, union
Tuesday, January 30, 2007
Fears over inflation-busting BA pay deal
independent.co.uk
Labels: Bank of England, British Airways, strike
Monday, January 29, 2007
BA strike cancelled
timesonline.co.uk (page not found)
Labels: British Airways, strike, union
Friday, January 26, 2007
Result of BA strike talks awaited
bbc.co.uk
Labels: British Airways, strike, union
Thursday, January 25, 2007
BA strike shuts down Heathrow Gatwick
timesonline.co.uk (page not found)
Labels: British Airways, Heathrow, strike
Monday, January 22, 2007
BA cabin crew to strike
independent.co.uk
Labels: British Airways, dispute, strike
Monday, January 15, 2007
BA staff vote for strike action
bbc.co.uk
Labels: British Airways, employees, strike
Friday, January 12, 2007
Strike in the wings at BA as relations hit 'worst for a decade'
timesonline.co.uk (page not found)
Labels: British Airways, pension, strike
Monday, November 13, 2006
BA ups stakes in bed wars
uk.reuters.com
Labels: British Airways, business class, inflight entertainment
Friday, November 03, 2006
BA in headlong retreat from UK airports
travel.timesonline.co.uk (page not found)
Labels: British Airways, uk
