After much negotiation, British Airways and Iberia have agreed in principle to tie the knot – forging the 3rd largest airline in the world.
After 16 months of discussion, the company will merge as an umbrella company (400 aircraft, 200 destinations). However in fiscal might, it will be smaller than Lufthansa or AirFrance-KLM.
Willie Walsh will head the new company with its main HQ in Madrid, it fiscal HQ in London.
Well – the first merger on the way. With the state these airlines are in, this is not a bad thing. The bigger concern for the passenger is amenities and service – will IB drag BA down… or will BA drag IB upwards in service level?
This is important as BA is a premium traffic airline.
If you can hear bleating in the background from Virgin Atlantic… well lets see…
AMS has a KLM Dominance…
FRA has a LH Dominance…
ZRH has a Swiss Dominance
DXB has a Emirates Dominance…
See a pattern emerging here? It’s in Virgin Atlantic’s interest to INNOVATE rather than moan and bitch.
