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Is the BA-Iberia merger good news?
British Airways and the Spanish airline Iberia say they have reached a preliminary agreement for a merger. Is it a good deal?
British Airways boss Willie Walsh has said the planned merger with Iberia is "great news for British Airways, our customers and our shareholders".
BA and Iberia have considered a tie-up for a number of years. BA already owns 13.5% of Iberia, and the two carriers have a code-sharing agreement under the One World grouping of airlines, which allows them to sell seats on each other's services.
Speaking on the BBC News Channel, travel writer Simon Calder called the merger "a marriage of convenience" and said that it is not good news for passengers.
Are you a British Airways or Iberia employee? What do you think about the merger? Are you a frequent flyer with BA or Iberia? Will the merger be a good deal for customers? Is this a step in the right direction for the future of British Airways in the current climate?
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Published:
Thursday, 12 November, 2009, 21:51 GMT
21:51 UK
All comments as they come in
Added:
Saturday, 14 November, 2009, 11:31 GMT
11:31 UK
Unfortunately this merger will tarnish the name of BA not enhance it. The Spainish are not known for customer, efficient or friendly service how will this be good?
Jacqueline Jackson, Tenerife
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Added:
Saturday, 14 November, 2009, 11:08 GMT
11:08 UK
We've sold off just about everything else that was British to foreigners so why not BA? I can see that in a year or so Iberia buying out BA and that will be the end of a long tradition beginning with BOAC back in the fifties. Nothing much made in UK anymore.
John, Wolverhampton
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Added:
Saturday, 14 November, 2009, 11:01 GMT
11:01 UK
I cannot believe there are still people out there bleating about T5 being a disaster. Yes, it was a complete fiasco on it's opening, but since then things have changed dramatically. T5 is now running fantastically, there is of course the odd hiccup but BA's punctuality now reaches an average of 96% on all flights compared with an average 45% 2 years ago at T1 and T4. Connections are far smoother and quicker thanks to being under 1 roof.
Mark, Bracknell
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Added:
Saturday, 14 November, 2009, 10:59 GMT
10:59 UK
I guess this means BA fans will have to develop an affinity for paella and sangria, and Iberia fans will have to get used to drinking tea! Looks to me like a desperate move by two companies in trouble.
Dominick, Florida, USA
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Added:
Saturday, 14 November, 2009, 10:58 GMT
10:58 UK
The merger is really the only way BA can survive. Over the last few years it has killed off most of it's short-haul services. I'm sure the bean counters worked out they were unprofitable but for people lving outside of Heathrow who used them to connect to BA services, we were left with other airlines (KLM and Iberia). Iberia however is much better managed than BA and much more forward thinking. Hopefully the merger will resort in more Spanish ownership an ideas and BA might well survive.
Lee
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Added:
Saturday, 14 November, 2009, 10:55 GMT
10:55 UK
The4 whole project is redolent of the Merger between the New York Central and Penssylvania Rairoads in the USA duing the 1960's. Both roads were in financial trouble anmd had incompatible operating systems.
Fairly soon after the merger the merged company, Penn Central, went bankrupt.
Toujours la meme chose! "
David Toulman, Walkington. East Yorkshire, United Kingdom
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Added:
Saturday, 14 November, 2009, 10:50 GMT
10:50 UK
Wee Willie seems to be living on a different planet;the 2 Companies will keep their own Identities,so where are the savings coming from,also Spanish Labour laws are much tougher than those in the UK? Next, because of bad service I have made it apoint not to use BA;and last year we flew to Peru via Madrid,the only good thing was the Airport at Madrid. I don't know if Wee Willie has looked at the of the "rolling stock" because the state and age of the planes leaves much to desired,also the caterer
John Ogden, Paris, France
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Added:
Saturday, 14 November, 2009, 10:46 GMT
10:46 UK
For me it's terrible news. B.A. my favourite airline BY far merging with my least favourite! The last 5 times I flew with Iberia my luggage was lost for on average a week and the last time permanently!
A sad day. Willie Walsh is destroying B.A.
Mattydab oywilson, Santa Cruz 6 Region, Chile
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Added:
Saturday, 14 November, 2009, 10:41 GMT
10:41 UK
"Customers and employees are never the winners, company decisions are taken for the sole benefit of shareholders and those making the money! John Conroy, Belfast, United Kingdom"
That's because company law in the UK says that the directors MUST act in the best interests of the shareholders. Employees and customers are not the owners of the company and have no part to play in this kind of decision.
If you want to have a say in matters like this, risk your money and buy some shares.
John Smith, Why has global temperature not risen since 1997?
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Added:
Saturday, 14 November, 2009, 10:39 GMT
10:39 UK
in an industry, where the biggest player have no more than 5% of market share, this is good news.
[Gheryando], Italy
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Added:
Saturday, 14 November, 2009, 10:39 GMT
10:39 UK
'Mergers lead to monopolistic practices and price rigging.It is not good at all, and the public will end up paying higher fares.'
They don't need to merge to fix prices - that's been going on for decades with countless half-hearted investigations. Why have a monopoly when under-the-table cartels will do.
It's funny though - people hanker after nationalising the railways. British Rail - expensive, dirty, late and poor service. At least these days, its just expensive, late and confusing.
[Angry_Brit], United Kingdom
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Added:
Saturday, 14 November, 2009, 10:37 GMT
10:37 UK
Profit margins used to be greater in all walks of life. This allowed great waste, but that didn't matter. In aviation as an example a few passengers provided income and profit to keep an army of crews, cabin staff, engineering and support in big airlines. it allowed shoestring companies to compete in other market sectors.
These days it all volume. Planes full, minimum time on ground (seats never cool).
As always, profit is life, so now efficiency drives.
Mergers are inevitable today.
[twyfordshanks]
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Added:
Saturday, 14 November, 2009, 10:22 GMT
10:22 UK
This merger has been a long time coming. In fact, for the past decade BA has tried to merge with other airlines such as KLM and Qantas. The merger with IB has been around for the past 2 years when the company was very profitable so to say it's out of desperation is ridiculous. Fuel, one of BA's biggest costs, will be cheaper as they will have more weight than if they were alone. The brand will remain the same, so forget British Iberian Airways. Some people have no clue and just jabber away!
Mark, Bracknell
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Added:
Saturday, 14 November, 2009, 10:19 GMT
10:19 UK
I feel that the merger will only benefit shareholders (fair enough) but because the purpose is to reduce costs, so less people helping = less customer service and if BA decides to predominantly use Iberia's system because it's cheaper then well say goodbye to a great british airline. Oh did i mention that a cross over in systems and personel will probably lead to a disorganised service and loss of bags - just imagine Heathrow T5 all over again but X500 for the next 2-3 years. Not for me ...
Cristobal, Spaniard in London
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Added:
Saturday, 14 November, 2009, 10:07 GMT
10:07 UK
Those wingeing about the excessive fares of BA should firstly consider the full cost of flying with Ryan Air or Easyjet before dismissing BA.
We flew BA recently and our experince was that against Easyjet there was about £50.00 difference. However once you allow for the then included food and drinks, plus the ability to choose your seats (important when flying with children) the "extra" is not too important.
clive hamilton, woking
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DEBATE STATUS
Total comments: 450
Published comments: 405
Rejected comments: 33
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