ATW Daily News

BA's Walsh: Merger talks with Iberia progressing, announcement coming

Thursday October 15, 2009

British Airways CEO Willie Walsh said merger talks with Iberia have progressed significantly since Altadis Antonio Vazquez replaced Fernando Conte as IB chairman and CEO in July and predicted an announcement regarding a possible joining of the two oneworld carriers will come "in the weeks ahead."

Following a speech yesterday to the International Aviation Club in Washington, Walsh said discussions with IB regarding a merger "have gone on considerably longer than I expected," but commented that the "change in management" at the Spanish carrier over the summer has enabled more productive negotiations (ATWOnline, July 10). "A merger between BA and Iberia represents a good step forward," he said. While consolidation won't solve the financial problems facing airlines around the world, "it is part of the solution," he said.

Walsh also noted that BA is "clearly interested" in acquiring part or all of bmi if Lufthansa, which this month assumed effective control of the loss-making carrier, "should choose to dispose of it" (ATWOnline, Oct. 9). He added that BA has "had no discussions at this point" regarding bmi, but is closely following LH's statements about the carrier in the media.

Regarding Japan Airlines, another carrier in which BA is speculated to have an interest in taking a stake, he said the Tokyo-based company is a "very important member of oneworld" and that BA wants to see it remain in the alliance. Struggling JAL confirmed it has held talks with both Delta Air Lines and American Airlines regarding one of those carriers taking a stake to help boost its weak financial position (ATWOnline, Oct. 6).

BA has admitted it has participated in talks with JAL related to the potential stake sale to help induce it to stay in oneworld; alliance members are fearful that a JAL/DL tie-up could lead the Japanese airline to jump to SkyTeam. "I believe that Japan Airlines can and does benefit from oneworld," Walsh said yesterday. "At this point we have not considered whether we should make an investment [in JAL], but I am keeping an open mind on that proposal."

by Aaron Karp

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