BA looks to India and China for expansion
International Airlines Group, the airline giant created by the merger of British Airways and Spanish carrier Iberia, is keen to bring more names under its banner, according to BA boss, Willie Walsh. Announcing a new code share agreement with Kingfisher Airlines in Mumbai recently, BA’s chief executive admitted that a short list of 12 airlines had been drawn up from which a select few could be approached with offers.
According to sources, Mr Walsh is not looking for minority stakes, but full acquisitions or mergers. Most of the airlines targeted are apparently in China and India. Mr Walsh said he was interested in entering into discussions with other airlines which believe consolidation is the future of the airline industry.
In 2008, BA failed to complete a merger with Australian flag-carrier, Qantas. The airline has also been struggling recently because of ongoing disagreements with its cabin crew and Unite, the union representing its workers. So far this year, customers have faced 22 days of strikes.
Recent meetings at Acas have failed to bring any resolution to an argument which started over cost cutting measures but which has snow-balled into a fight over travel perks and disciplinary action. Neither side seems willing to make any concessions at the moment and a recent peace deal was rejected by union members.
When the deal between Iberia and BA is completed, International Airlines Group will become one of the largest airlines in the world. BA is also close to a tie-up with American Airlines after receiving approval from regulators in the US and Europe.