oneworld news

[Cornelis Boersma 0]

Thanks Unc. Pieter for the news update regarding one world, star alliance etc.

 

Just want to add, I think BA miles redemption is the most ridiculous FFP ever. I tried to redeem my miles from ORD to SIN, the tax and surcharge is near USD800!!!! or I could pay extra USD300 for CX so much for "free flight"...

 

Yeah too bad those surcharges and taxes, but look it the positive way You still safe a little amount of money, and with the (even small) saving you can book another short-haul trip or have a little more expensive hotel, or extra night in the pub whatever you like

[Seth K 3]

Yeah too bad those surcharges and taxes, but look it the positive way You still safe a little amount of money, and with the (even small) saving you can book another short-haul trip or have a little more expensive hotel, or extra night in the pub whatever you like

Now I am just going to use my BA miles for short haul flight. I try to get the best deal from LON to KL this summer, 80,000 BA miles plus USD900, or I can pay full fare USD800 with QR fir the same route

[Keith T 2]

Now I am just going to use my BA miles for short haul flight. I try to get the best deal from LON to KL this summer, 80,000 BA miles plus USD900, or I can pay full fare USD800 with QR fir the same route

 

Switch to AAdvantage if you don't mind flying AA rather than BA between the US and the UK, though if ATI for AA/BA/IB comes through this might change. AA does not charge fuel fines for awards.

 

Otherwise, in most cases the tax/fuel fines make F/J bookings better value than bookings in whY (like you pointed out it's often not much more to simply buy a flight in whY) though out of the UK you also have to deal with APD.

Edited November 30, 2008 by Keith T

[Seth K 3]

Switch to AAdvantage if you don't mind flying AA rather than BA between the US and the UK, though if ATI for AA/BA/IB comes through this might change. AA does not charge fuel fines for awards.

 

Otherwise, in most cases the tax/fuel fines make F/J bookings better value than bookings in whY (like you pointed out it's often not much more to simply buy a flight in whY) though out of the UK you also have to deal with APD.

Is it possible to transfer all my BA miles to my new AAdvantage? If yes, that's wonderful then.

[Pieter C. 5]

Now I am just going to use my BA miles for short haul flight. I try to get the best deal from LON to KL this summer, 80,000 BA miles plus USD900, or I can pay full fare USD800 with QR fir the same route

 

So, you're gonna fly QR ?

You won't regret, bro...

 

More Oneworld-news:

 

Cathay Seeks To Delay Boeing Deliveries

 

November 28, 2008

Cathay Pacific said it plans to delay delivery of its Boeing aircraft, with list prices of about USD$9.5 billion, while Beijing is said to be considering asking its airlines to request similar delays as the global financial crisis hits the region's carriers.

 

Cathay Pacific also said on Friday it would defer construction of a cargo terminal in Hong Kong and ask its cabin crews to take unpaid leave to cut costs as demand shrinks.

 

Declining consumer spending has added to the problems of airlines, which have been grappling with higher fuel costs.

 

"This is a very difficult time for our airline and for the aviation industry as a whole, and we cannot see light at the end of the tunnel at this point," Cathay's chief executive Tony Tyler told reporters on Friday.

 

Cathay Pacific, based in Hong Kong, has orders for about 35 Boeing aircraft and was expected to take delivery of around 10 each year in 2009, 2010 and 2011. "We have suggested to them that we are happy to take a delay of 777 and some freighters," Tyler said.

 

According to Boeing's web site, Cathay has unfilled orders for 10 747-8 Freighters, four 747-ERF Freighters and 21 777-300ER twin engine passenger jets, worth a total of almost USD$9.5 billion at current average list prices.

 

Given that a two month machinists' strike at Boeing was resolved this month, Cathay Pacific will take the opportunity to negotiate with Boeing to delay delivery, and it will take 60 to 90 days to work up a plan, chief operating officer John Slosar said.

 

"There won't be a huge change, and it will be more a push back and move around a little bit," he said.

 

Cathay's decision is a minor blow for Boeing, which has a backlog of orders for 3,734 planes. But it could be a sign that more airlines in Asia, an increasingly important region for the US plane maker, could push back deliveries or even cancel orders.

 

A Boeing spokesman declined to comment on Cathay's deferral, saying Boeing does not talk about specific customers. He said deferrals occur frequently, and Boeing has a "strong and diverse" backlog to weather any down cycle.

 

Boeing has had major deferrals this year from US carriers Southwest Airlines and AirTran. But with airlines around the world facing volatile fuel prices, waning demand and difficulty accessing capital, more deferrals or cancellations could occur.

 

Boeing is already delaying deliveries of all its commercial jets by at least two months after the 58 day strike by its machinists. The company is expected to set out a new delivery timetable in December.

 

The plane maker's shares closed up 3.3 percent at USD$42.63 on the New York Stock Exchange on Friday.

 

Cathay will postpone building its HKD$4.8 billion (USD$619 million) cargo terminal by up to two years. Groundbreaking was in September, and it was expected to be completed in the second half of 2011. Traffic through the world's busiest international cargo airport slowed 9.2 percent in October after declining 7.5 percent in September.

 

Cathay said earlier this month that its October cargo volume sank 7.4 percent to 144,466 tonnes.

 

Analysts said delaying the terminal would ease Cathay's cash flow problem. It issued a profit warning this month on the back of potential fuel hedging losses of about USD$361 million.

 

The airline also plans to ask cabin crews to take unpaid leave of between two weeks to 12 months, park two freighters, sell or retire five planes and reorganize flight schedules.

 

The Civil Aviation Administration of China (CAAC) is preparing to ask carriers to negotiate with aircraft leasing companies and manufacturers such as Airbus and Boeing about delaying delivery of new orders, the South China Morning Post reported on Friday.

 

"A meeting has been called by CAAC at the beginning of next month to discuss an adjustment of the delivery schedule," it quoted Xiamen Airlines general manager Hu Bin as saying.

 

But Air China, the country's largest airline by market value, said it had received no such notice.

 

Huang Bin, secretary of the board of Air China, said his company was on schedule to receive 23 aircraft, including Airbus A320s and Boeing B737-800s, next year.

 

"Apart from the delay in delivering Boeing 787 due to its own reasons, all other (deliveries) remain normal," Huang Bin said.

 

Boeing had said earlier in November that the first flight of its 787 would be pushed into next year instead of the end of this year because of the strike. Concerns about the production delays and airlines' lack of financing to buy planes recently helped send Boeing's stock to a five-year low.

 

(Reuters)

 

 

[Seth K 3]

So, you're gonna fly QR ?

You won't regret, bro...

Unc Pieter,

 

There are tonne of options for now(trans-atlc/ trans-pacf). I just want to try AKX from STN to KUL, cheap? yes, but QR and EK offer better fare, 200USD more than AK. Transportation to STN from LHR+inflight meals+previous uncomfortable experience with them+others, I believe QR gives me better offer in term of money value(?). I try to book ORD-LHR with BA and get my next flight to KUL a day later after partying at London town As for now, I just have to catch another EK from JFK It's kinda boring to fly the same airlines/route over and over again......

 

I wonder why I can't book QR from JFK-KUL at their website.

 

My dad loves QR, he flew with them once, sad that his company has no business contract with QR for cheaper biz class fare

[Pieter C. 5]

Unc Pieter,

I wonder why I can't book QR from JFK-KUL at their website.

 

OT now, but this is what I got for a one-way JFK-KUL via DOH (took 06dec08 as an example):

 

Select Departure Flight (New York (NYC) to Kuala Lumpur (KUL) Saturday, 06 Dec 2008)

 

Flight Departure Arrival Duration

 

QR084 New York (JFK)

22:35 Doha (DOH)

19:10 +1 day(s)

 

QR624 Doha (DOH)

01:15 +2 day(s) Kuala Lumpur (KUL)

13:50 +2 day(s) 26:15 hrs

 

Total Price : 1,632.40 USD including taxes

 

 

[Keith T 2]

Is it possible to transfer all my BA miles to my new AAdvantage? If yes, that's wonderful then.

 

I am not sure. Sometimes it's possible to go via a third program like AMEX. But you'll lose a lot of value along the way so it's generally not worth it.

 

Didn't take advantage (no pun intended) of the BA 50% off sale? It'd be a great deal if you redeemed in J/F on that deal.

 

If you don't mind flying AA from the US to UK, AAdvantage is MUCH better value than BAEC. You can also go via Canada, Mexico or the Carribean if you really want to fly BA, but i find AA a better option in whY, and quite competitive in C and F.

 

OT now, but this is what I got for a one-way JFK-KUL via DOH (took 06dec08 as an example):

 

Select Departure Flight (New York (NYC) to Kuala Lumpur (KUL) Saturday, 06 Dec 2008)

 

Flight Departure Arrival Duration

 

QR084 New York (JFK)

22:35 Doha (DOH)

19:10 +1 day(s)

 

QR624 Doha (DOH)

01:15 +2 day(s) Kuala Lumpur (KUL)

13:50 +2 day(s) 26:15 hrs

 

Total Price : 1,632.40 USD including taxes

 

Looking in March this is what I got for NYC-KUL return on Sabre:

 

03MAR DEPARTURE DATE-----LAST DAY TO PURCHASE 24FEB/2359        
       BASE FARE                     TAXES             TOTAL    
1-    USD980.00                    429.40XT      USD1409.40ADT 
    XT     30.80US       5.50YC       7.00XY       5.00XA       
            2.50AY      14.10MY     360.00YQ       4.50XF       
          980.00                    429.40           1409.40TTL 
ADT-01  HLAP7US                                                 
NYC QR X/DOH QR KUL490.00HLAP7US QR X/DOH QR NYC490.00HLAP7US  
NUC980.00END ROE1.00 XFJFK4.5                                  
NON END/NON REF/CHANGE FEE APPLIES/ VALID ON QR ONLY            
VALIDATING CARRIER - QR                                         
1 QR  84H 03MAR T*JFKDOH SS1  1035P  710P  04MAR W /DCQR /E    
2 QR 624H 05MAR Q DOHKUL*SS1   115A  150P /DCQR /E             
3 QR 625H 20MAR F*KULDOH SS1   230A  520A /DCQR /E             
4 QR  83H 20MAR F DOHJFK*SS1   820A  300P /DCQR /E

 

NB long connection in DOH on the outbound.

Edited December 1, 2008 by Keith T

[Pieter C. 5]

[quote name='Keith T'

 

NB long connection in DOH on the outbound.

 

But Lounges are excellent, especially Business- & First Class (depending on fare and/or status)...even seperate Terminal and BMW 7-series transfers to/from the plane(s) !!!

[Pieter C. 5]

That's what QR-website says too: excellent fare/deal IMHO !!!

 

Select Departure Flight (New York (NYC) to Kuala Lumpur (KUL) Tuesday, 03 Mar 2009)

 

Flight Departure Arrival Duration

 

QR084 New York (JFK)

22:35 Doha (DOH)

19:10 +1 day(s)

 

QR624 Doha (DOH)

01:15 +2 day(s) Kuala Lumpur (KUL)

13:50 +2 day(s) 26:15 hrs

 

 

Select Return Flight (Kuala Lumpur (KUL) to New York (NYC) Friday, 20 Mar 2009)

 

Flight Departure Arrival Duration

 

QR625 Kuala Lumpur (KUL)

02:30 Doha (DOH)

05:20

 

QR083 Doha (DOH)

08:20 New York (JFK)

15:00 24:30 hrs

 

 

QR625 Kuala Lumpur (KUL)

02:30 Doha (DOH)

05:20

 

QR025 Doha (DOH)

08:10 Frankfurt (FRA)

13:15

 

QR5512 OP Frankfurt (FRA)

17:00 New York (JFK)

19:45 30:15 hrs

 

 

 

 

Total Price : 1,409.35 USD including taxes

 

JFK-DOH on QR 773 & FRA-JFK on Lufthansa some-more !!!

 

 

[Pieter C. 5]

Australia Says Qantas To Stay 51 Percent Locally Owned

 

December 2, 2008

Qantas Airways will remain majority Australian-owned and Singapore Airlines will stay shut out of lucrative Australia-US routes under a new government aviation blueprint.

 

A discussion paper for the industry, released on Tuesday by the government, would keep the existing cap on foreign ownership of Qantas at 49 percent, Transport Minister Anthony Albanese told state radio.

 

"The 51 percent Australian ownership is maintained under the Qantas act. We think there should be a level playing field apart from that," Albanese said.

 

The Australian newspaper said the proposals also include removing a 25 percent limit on individual foreign shareholdings in Qantas and a 35 percent total limit on foreign airlines' holdings in the carrier, making consolidation easier for Qantas.

 

The Australian also said the discussion paper, which outlines government thinking ahead of a policy paper to be released next year, will reiterate the government's opposition to granting third-party access to routes between Australia and the United States, one of the world's most protected airlinks.

 

Singapore Airlines, the world's largest by market value, has been pushing for access to the route as it seeks new markets to help offset competition from low-cost carriers in Asia.

 

It estimates opening the Pacific route to more competition could increase the number of travelers between the United States and Australia by up to 8 percent.

 

A 2006 report for Singapore Airlines said Qantas charged 38 percent more for flights from Sydney to Los Angeles than on the competitive route from Sydney to London.

 

United Airlines is currently the sole competitor to Qantas in non-stop flights to the US West Coast. Local carrier Virgin Blue's V Australia unit will begin flights on the route in February.

 

The paper also rejects calls for foreign carriers to be allowed to operate Australian domestic routes, The Australian said.

 

Albanese said he would not be opposed to one foreign airline buying 49 percent of Qantas, the world's 10th largest airline by market value, which has slashed jobs to combat the economic downturn.

 

"We think that essentially is a commercial decision for Qantas," Albanese said.

 

(Reuters)

 

[BC Tam 2]

BA is in merger talks with Qantas

 

British Airways has said that it is exploring a potential merger with the Australian flag-carrier Qantas Airways.

 

The British flag-carrier cautioned that there was "no guarantee that any transaction will be forthcoming".

 

In a statement, BA said that the merger would be through the creation of a dual-listed company, so it would be listed in London and Australia.

 

BA said that its discussions with the Spanish flag-carrier Iberia are also still continuing.

 

From here

 

This would be interesting / astounding indeed

[Mohd Suhaimi Fariz 2]

If there's going to be a merger, it'll probably be like the AF/KL merger where they keep their separate identities. But one bad thing about mergers is that they could create megacarriers that could monopolize the business and stifle competition from small newcomers. Regulators must keep a close eye on that, otherwise we could see the return of high fares of olden days.

[Pieter C. 5]

See also the OneWorld thread, about the 51% of Aussie ownership of Qantas...

[Keith T 2]

BA in merger talks with Qantas.

 

http://www.iht.com/articles/2008/12/02/business/air.php

 

British Airways announced Tuesday that it was discussing a merger with Qantas, the Australian flagship carrier, with a view to creating an airline network that would span the globe.

 

BA has also released an official statement on bashares.com

Edited December 3, 2008 by Keith T

[Keith T 2]

Oops... I posted in the OW thread before I saw this thread...

[Seth K 3]

BA in merger talks with Qantas.

 

http://www.iht.com/articles/2008/12/02/business/air.php

 

 

 

BA has also released an official statement on bashares.com

Ah great, both don't even fly directly to KUL!

[Pieter C. 5]

British Airways In Merger Talks With Qantas

 

December 2, 2008

British Airways and Australia's Qantas Airways said they were in merger talks, signaling further consolidation in an industry desperate to cut costs in the global economic downturn.

 

BA, whose market value of GBP1.8 billion pounds (USD$2.7 billion) is only a fraction smaller than that of Qantas, also said merger talks already underway with Spain's Iberia to form the world's third largest airline were continuing.

 

A tie-up between BA, Iberia and Qantas would create the world's biggest airline with combined scheduled passenger kilometres flown of almost 270 billion a year, comfortably overtaking American Airlines on 222.8 billion.

 

Blue Oar Securities airline analyst Douglas McNeill said BA's latest move was in line with its strategy of taking a lead in consolidation in an industry battling wild swings in fuel prices and falling demand as global recession looms.

 

"They are out to create a global player, which is an audacious goal that would be difficult for any management team to pull off," he said.

 

Analysts said a three-way combination looked a long way off, however, given that talks with Iberia were first announced in July and have stalled on worries over BA's pension deficit.

 

Qantas made no mention of Iberia in its statement.

 

"Qantas Airways Ltd confirms that it is exploring a potential merger with British Airways plc via a dual-listed company structure," the airline said in a statement early on Wednesday, adding there was no guarantee they would agree on a deal.

 

BA acquired 25 percent of Qantas in 1993 in the first step towards privatization of the Australian carrier but sold out 11 years later.

 

"I would see the priority of things being the Iberia merger talks and the Iberia/American anti-trust immunity before any deal is done with Qantas," said NCB analyst Neil Glynn.

 

"I would be surprised if any deal with Qantas is placed ahead of those in the pecking order."

 

British Airways, Iberia and American Airlines said in August that they had filed for antitrust immunity in the United States in order to be able to cooperate commercially on flights between North America and Europe.

 

Shares in BA climbed to 164.1 pence following the announcement before settling down to close 12.5 percent higher at 157.1 pence, valuing the airline at around GBP1.8 billion, little different from Qantas's market value of around AUD$4.4 billion (USD$2.83 billion).

 

On Tuesday, Australian transport minister Anthony Albanese said Qantas would remain majority Australian-owned with a cap on foreign ownership maintained at 49 percent.

 

But Albanese said he would not be opposed to one foreign airline buying 49 percent of Qantas, the world's 10th largest airline by market value.

 

"Qantas is very important to Australians, it is important as our national carrier. It's been an important part of our history and it's obviously a very big employer of Australians," Deputy Prime Minister Julia Gillard told Australian state radio on Wednesday when asked about the merger proposal.

 

She added that any proposal would be subject to a national interest test.

 

Transport minister Anthony Albanese said in a separate radio interview that the government would protect Australian ownership of Qantas and would not allow the national carrier to be taken over.

 

An USD$11 billion private equity bid for Qantas fell apart early last year as shareholders objected.

 

News of the talks follows Aer Lingus' rejection on Monday of a fresh approach from rival Irish carrier Ryanair, and October's move by Lufthansa to become British carrier bmi's majority shareholder.

 

BA said in a short statement that any merger with Qantas would be via a dual-listed company structure and cautioned there was no guarantee the talks would result in a deal.

 

NCB's Glynn said a merger would be strongly positive for British Airways over the medium term and likely to help its share price in the very short term.

 

"However, there is potential for significant revenue concerns to ultimately outweigh positive sentiment on this announcement," Glynn said.

 

Elsewhere in Europe, Lufthansa is vying with rival Air France KLM to strike an alliance with Italy's national carrier Alitalia. Lufthansa is also planning to buy Austrian Airlines.

 

(Reuters)

 

[Pieter C. 5]

Australia Open To BA/Qantas Merger, Not Takeover

 

December 3, 2008

Australia said it is open to a USD$5.9 billion merger between Qantas Airways and British Airways as long as it's not a takeover, sending the Australian carrier's shares up nearly 10 percent.

 

Qantas and BA said on Tuesday they were in talks to form a dual-listed airline, a latest move in an industry desperate to reduce costs as recession-hit businesses and tourists curb travel.

 

But Australia's Labor government, which traditionally relies on trade unions for its power base, threatened to slam the door shut if it felt Qantas was effectively being taken over.

 

"Our bottom line is the 'Flying Kangaroo' remains majority Australian-owned and based," Treasurer Wayne Swan told reporters.

 

Ministers flagged any deal would have to meet the national interest and should not amount to a takeover of Qantas.

 

"Were that to be the case, the government would certainly not support it," Transport Minister Anthony Albanese told state radio.

 

"I would support that type of (merger) move," said Angus Gluskie, of White Funds Management which owns Qantas shares, citing a need to cut costs given falling demand and the risk of global recession.

 

But another Australian fund manager, who declined to be identified, said Qantas was unlikely to yield much more cost savings from a merger with BA than it could already achieve through its current code-sharing partnership.

 

Others said it was too early to comment without knowing the terms of any deal.

 

"In principle, there's nothing wrong with it. The issue is what's the merger ratio. Does it reflect the value of the Qantas franchise, and how big are the synergies?" said Paul Fiani, managing director of Integrity Investment Management.

 

Fiani, then at UBS Asset Management, was one of two fund managers who scuppered an USD$11 billion private equity bid for Qantas last year.

 

The other major shareholder who opposed that deal, Balanced Equity Management, declined to comment.

 

On Tuesday, BA shares surged 17.5 percent after it said it was exploring a tie-up with its fellow OneWorld alliance member. BA once owned 25 percent of Qantas, but sold out in 2004.

 

BA, whose GBP1.8 billion pound (USD$2.7 billion) market value is only a fraction smaller than Qantas', also said merger talks were continuing with Spain's Iberia to form the world's third-largest airline.

 

The value of announced mergers in the airline industry has already risen 10 percent from last year to a record USD$20 billion from 113 deals, according to data compiler Dealogic.

 

A three-way tie-up between BA, Iberia and Qantas would create the world's biggest airline, with combined scheduled passenger kilometers flown of almost 270 billion a year, comfortably overtaking American Airlines' 222.8 billion.

 

Qantas did not mention Iberia in its short statement and declined to make any further comment.

 

Analysts said the move was in line with BA's strategy of taking a lead in industry consolidation to put itself in better shape to deal with increasingly tough times.

 

For Qantas, a merger would open up the European market.

 

"It will be a partnership that is mutually beneficial. It does help Qantas... get entrenched in that European market more effectively," said Derek Sadubin, chief operating officer of the Centre for Asia Pacific Aviation, a Sydney-based consultancy.

 

Analysts said a three-way combination looked a long way off, however, given that talks with Iberia were first announced in July and have stalled on worries over BA's pension deficit.

 

"I would see the priority of things being the Iberia merger talks and the Iberia/American anti-trust immunity before any deal is done with Qantas," said NCB analyst Neil Glynn.

 

British Airways, Iberia and American Airlines said in August they had filed for US antitrust immunity in order to cooperate commercially on flights between North America and Europe.

 

Under Australian law, Qantas, the world's 10th largest airline by market value, cannot be majority owned by foreigners and must maintain its headquarters and its stock listing at home.

 

Australia's pilots and transport workers' unions, which opposed last year's bid, pressed for keeping jobs in Australia.

 

"We don't want Qantas to collapse under any arrangement that isn't well thought through," Transport Workers Union National Secretary Tony Sheldon told reporters.

 

(Reuters)

 

New Qantas Chief Hits The Ground Running

 

December 3, 2008

The new boss of Australian carrier Qantas is wasting no time in his new job as he chases a merger with British Airways.

 

Alan Joyce, 42, capped his meteoric rise at the world's 10th largest airline just last Friday, replacing Geoff Dixon, who stepped down after nearly eight years as chief executive.

 

Joyce inherits an airline that expects to turn a profit this year, albeit down 65 percent on last year, in contrast to rivals such as Korean Air which slid to a quarterly loss.

 

In the quest to merge with BA, he is not only taking on a government worried about the iconic "Flying Kangaroo" hopping offshore, but unions who successfully fought off an USD$11 billion private equity takeover bid two years ago.

 

Joyce may be fresh-faced, but the Irishman is a 20 year airline industry veteran, starting at Aer Lingus as an analyst, armed with a double degree in physics and mathematics.

 

During his eight years at Ireland's national carrier, rising through sales, marketing, network planning, revenue management and fleet planning, he worked with fellow Irishman Willie Walsh, now head of British Airways.

 

"The 'x' factor in the Qantas-BA discussions might be that there's a bit of affinity between the two CEOs," said Sydney-based aviation expert Derek Sadubin, at the Centre for Asia Pacific Aviation, a consultancy.

 

Joyce flew to Australia 12 years ago for a job with now defunct Ansett, joined Qantas in 2000 and was tapped to launch its offshoot Jetstar in 2003, taking on Virgin Blue and now battling Tiger and AirAsia X in the no-frills business.

 

Copying Irish low-cost carrier Ryanair's model to reduce turnaround times and keep costs down, Joyce managed to make Jetstar profitable and expanded onto long haul routes in Asia without cannibalising passengers from its parent.

 

Within three years of launching, Jetstar was named low-cost carrier of the year in an annual survey by Skytrax, a UK-based consultancy.

 

In that time Joyce has not shrunk from a fight with unions.

 

"On a personal level, he's very approachable and personable and quite charming and friendly," said Peter Somerville, general manager of the Australian and International Pilots Association.

 

"But he well and truly knows the business that he's about, and he's made it extremely difficult for unions in Jetstar."

 

"It'll be a formidable challenge in dealing with him, just as he has formidable challenges in dealing with the problems of the Qantas group," Somerville said.

 

When Joyce got the top job at Qantas, his parents said to the dual Australian and Irish citizen, "I suppose this means you aren't coming home now," according to The Age newspaper.

 

Maybe a merger with BA will take him closer to home.

 

(Reuters)

 

[Pieter C. 5]

British Airways Says Planned Deals All Possible

 

December 4, 2008

British Airways said its proposed mergers with Iberia and Qantas and a tie-up with American Airlines were not alternatives and could all happen if regulators agree.

 

"We'd be very happy to consummate all these transactions," BA's group treasurer George Stinnes said on Wednesday. "It's certainly not an 'either-or' situation."

 

BA said on Tuesday that it was considering a potential merger with Australian carrier Qantas Airways and its discussions were also continuing about a possible merger with Spanish carrier Iberia.

 

BA, Iberia and American Airlines have also applied to the US regulatory authorities for anti-trust immunity, which would allow them to co-operate in areas such as pricing and marketing.

 

Stinnes declined to say how likely the various deals were to succeed, or to give a time scale for completing them.

 

"We're working our way through the agenda," he said. "These things are complex -- it's not like going down to the corner shop and picking up some apples."

 

Stinnes spoke after BA announced a 5.9 percent fall in traffic in November on a year ago to 8.71 billion revenue passenger kilometers (RPKs).

 

Overall passenger numbers dipped by 7.8 percent to 2.42 million while BA's passenger load factor dropped by 2.2 percentage points to 74.4 percent of capacity. Premium traffic fell by 10.8 percent and non-premium traffic dipped by 4.8 percent.

 

Stinnes said the figures continued a trend begun in September, when business class travel started to weaken, although the decline was in line with BA's expectations.

 

Financial sector customers such as bankers were traveling less, although business service clients such as lawyers and accountants were "still traveling as much as ever," he said.

 

"The economic slowdown is certainly affecting air travel and we've been pretty clear about that," he said.

 

"The current level of decline in premium either side of 10 percent is something we expected to happen."

 

BA was still expecting to make a small operating profit for the full year, Stinnes said.

 

"Trading conditions remain broadly unchanged, with long-haul premium traffic stable and consistent with the trends of recent months," BA said in a statement. "Financial guidance for the year remains unchanged."

 

The figures were a stark contrast with Irish low-cost rival Ryanair, which said its planes were slightly fuller than a year earlier.

 

Ryanair said its load factor improved for the first time since March, hitting 79 percent of capacity last month compared with 78 percent in November 2007.

 

Europe's biggest low-cost carrier also said the number of passengers it carried rose 11 percent on the year to 4.32 million.

 

Ryanair's fast growing fleet and route network means it consistently reports big rises in passenger numbers, but it has been eight months since it last reported an increase in load factor.

 

(Reuters)

 

[Pieter C. 5]

BA/Qantas merger announcement meets with Australian resistance

 

Thursday December 4, 2008

Proposed merger of British Airways and Qantas announced Tuesday already is generating controversy in Australia, some 19 months after similar sentiments helped derail a leveraged buyout of QF by a multinational consortium.

 

The Australian government issued a new aviation policy proposal this week raising the amount a single overseas interest could take in Qantas to 49% from 25%, but the governing Labor party remained concerned that BA's tie-up with QF could be a de-facto takeover.

 

"Were that to be the case, the government would certainly not support it," Minister for Infrastructure, Transport, Regional Development and Local Government Anthony Albanese told ABC Radio. "Whilst Qantas and BA have put out a statement confirming these talks, they're far from reaching a conclusion and the outcome [is] far from certain," he added, stressing that it has been "made clear" to Qantas that its arrangement with BA must adhere to national law. Treasurer of Australia Wayne Swan said, "Our bottom line is the 'Flying Kangaroo' remains majority Australian-owned and based," Reuters reported.

 

Warren Truss, leader of the opposition National Party, told ABC's The World Today that "if one company owns up to 49% of Qantas then they would have effective control. Indeed, they would achieve effective control at a level much lower than that and Australians would want to be certain that they still had an airline that would put the interests of this country first and that their capacity to serve Australia was not compromised." Local editorials and public opinion polls also suggested opposition to the merger.

 

 

[Pieter C. 5]

Iberia's Conte concerned over BA/Qantas negotiations

 

Friday December 5, 2008

British Airways faces some turbulence in its bid to take major equity stakes in both Iberia and Qantas, with IB CEO Fernando Conte claiming that BA's ambitions are "too complex."

 

Speaking Wednesday at an Aviation Club lunch in London, Conte reportedly argued that it would be "more reasonable" and "more rational" for BA to focus on intra-continental consolidation before trying to strike a transcontinental deal. He also revealed that BA CEO Willie Walsh told him about the Qantas discussions only an hour before the UK carrier publicly confirmed them.

 

"I do believe in global consolidation, but at this point, from a regulatory point of view and maybe a political one, we are still not prepared for that," Conte said. "I can tell you very sincerely that Qantas is a brilliant company. However, I think a merger or collaboration within the EU is a totally different scenario from one between companies on different continents."

 

He said he did not have "too much information" about the BA/QF discussions and plans to meet with Walsh in order "to clarify what we are talking about." The oneworld partners confirmed merger talks in July. IB controls 9.9% of BA, which in turn holds 13.2% of IB. Iberia insiders have said the Spanish carrier is far from happy with BA as IB has rebuffed overtures from Lufthansa and Air France KLM in order to pursue the BA equity tie-up.

 

In Australia, editorial and public opinion appears firmly against a merger, while speculation has erupted in Malaysia that Malaysia Airlines also may be involved in talks with BA and QF.

 

Reports of talks between QF and MAS were not denied by the latter, which remained coy on the subject of consolidation. "We are in talks with a number of airlines on collaborating and creating synergies for growth. This ranges from joint ventures and codeshares to interlining partnerships," MAS CEO Idris Jala told The Malaysian Insider.

 

 

[Pieter C. 5]

QF's Joyce: 'No guarantee' of BA merger, no three-way union

 

Tuesday December 9, 2008

Qantas CEO Alan Joyce warned that there is "no guarantee" of any deal with British Airways and there will be no three-way combination including oneworld partner and BA merger target Iberia.

 

In his first public speech since taking over as CEO, Joyce told attendees at the Australia-Israel Chamber of Commerce luncheon in Sydney yesterday that there are "a number of significant matters that still need to be resolved, including agreeing on an appropriate merger ratio and resolving issues around BA's pension fund and the broader economic outlook."

 

He claimed that the potential tie-up would give Qantas "global scale," allowing it to "grow and enhance" its services and "deliver significant revenue and cost synergies." But the carrier does not need BA, he added. "Qantas comes to these negotiations from a position of strength. We will only proceed with this transaction if we are assured that it will maximize value for Qantas shareholders."

 

The new CEO also moved to allay Australian concerns regarding foreign influence at QF. "There's been a bit of fear and loathing about what participating in global consolidation might mean for Qantas. What I can say to all Australians is this: Whatever happens, Qantas will remain majority Australian-owned. The vast majority of our employees will always be Australian, and Australia will remain our headquarters."

 

However, those comments may be too late as opposition against the deal continues to gain momentum, with virtually all domestic business commentators and analysts giving it the thumbs-down.

 

Following the speech, Joyce told reporters that there will be no three-way deal including Iberia, according to Bloomberg News. "BA are conscious, as Iberia are and we are, that only one of the transactions could take place. When you explore dialogue with any carrier the likelihood is that the carrier has multiple dialogues going on. That's the way it takes place."

 

 

[Keith T 2]

Personally I'm more interested in a QF/MH than a QF/BA. I can't for the life of me see what kind of benefit QF and BA will both derive from a merger over and above their existing JSA arrangements. To comply with the Qantas Sale Act, any merger will just be an extension and formalisation of their JSA anyway.

 

QF/MH... now that's a different beast. If it brings MH into OW I'd be absolutely ecstatic.

Edited December 13, 2008 by Keith T

[Pieter C. 5]

Pilots To Meet Iberia For Talks - Union

 

December 12, 2008

Pilots working for Spain's Iberia are to meet the company on December 17 to talk about a dispute over their contracts following several days of flight delays and cancellations, the union said on Friday.

 

The delays and cancellations have been caused by Iberia having too few pilots on duty, union Sepla said.

 

"In theory there are 2,000 pilots but there are around 300 too few of us at the moment because of the company," a spokeswoman said. "That's why there are delays."

 

But Iberia said there had been a rise in delays and cancellations since talks with pilots over a change to the collective agreement broke down.

 

"We are investigating the reasons," a spokesman said.

 

Sepla denied pilots were on strike. A unionist who did not wish to be named said the shortage of pilots was due to workers sticking strictly to their contracts during the talks.

 

"Sometimes more hours are flown because the company puts the pressure on, but when we are negotiating the collective agreement, hours are strictly respected," the unionist said.

 

(Reuters)