Dan Milmo, tra nsport correspondent gu ardian.co.u k, Friday 1 3 Nov em ber 2009 1 0.4 7 GMT
British Airways and Iberia have concur terms of a £4.3bn merger, creating Europes 3rd-largest airline. What are the implications of the deal? How big ordain the combined company be? The airlines annual revenues of €15bn (£13.4bn) make it Europes third largest airline by revenues, behind Germanys Lufthansa and Air-France KLM. In global terms, it allow for be the sixth largest behind a list that is dominated by US carriers by virtue of the huge American domestic market. What bequeath the innovative company be called? uniform Air-France KLM, BA and Iberia will be separate operating companies with characteristic brands owned by an over-arching holding company. That company is, for now, called TopCo. Willie Walsh, the proposed chief executive director of TopCo, admitted it was not the snazziest of titles and that the company will get a new name over the next year. What are the implications for consumers? Willie Walsh dismissed as total nonsense warnings that fares will increase on about routes, perhaps reflecting the fact that a major opponent of BAs integrating plans is Virgin Atlantic, Walshs least favourite airline.
A combined BA and Iberia will offer 205 destinations to their passengers, compared with 141 on BAs network, so there will be more choice. And with a third runway at Heathrow unlikely to happen, more and more BA passengers could find themselves firm to global destinations such as China and Africa through Iberias capital of Spain Barajas hub. And what about ticket prices? John Strickland, an industry consultant and originator BA manager, argues that the new business will have circumscribed scope to ramp up fares. BA and Iberia already co-operate a lot on the Spain-to-UK routes, but their market share is relatively small thanks to competition from low-cost carriers. On long-haul their networks dont crossway very much so its more of an opportunity to grapple more...If you want to get a full essay, order it on our website: Ordercustompaper.com
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