British Airways plans in doubt after Euro threat

Article Abstract:

The European Commission (EC) has challenged a planned alliance between British Airways and American Airlines. The commissioner for competition, Karel Van Miert, has said that he will take legal action against the UK if it permits the alliance to be set up. The UK President of the Board of Trade, Ian Lang, has set out conditions under which the alliance would be permitted. There is a debate as to whether the EC has the power to prevent the alliance, and some analysts see approval by US authorities as more important.

An alliance made in the heavens

Article Abstract:

British Airways (BA) is seeking an alliance with American Airlines and is awaiting regulatory approval. The alliance is important because BA has to compete against other airline groupings. BA's grouping already includes Canadian Airlines and Quantas. The European Commission has ruled that some slots have to be forfeited if the alliance goes ahead. Approval also has to come from the US. The two airlines are likely to abandon a full alliance if the regulators seek to impose conditions that are too heavy.

BA wanted to buy stake in EasyJet

Article Abstract:

British Airways (BA) sought to acquire a minority holding in EasyJet but negotiations ended in spring 1997. BA claimed that its acquisition would add value to EasyJet since it was a strategic investor, and this was a point of disagreement. BA has announced that it is considering expansion in the budget airline market, but critics argue that it does not have the skills to operate successfully in the sector. The company may prefer to invest in an existing airline and this would keep BA's brand separate.

Investments, Easyjet Airline Plc, Securities