Despite our best guess, British Airwaysis getting hot and heavy with Iberia--though there's no word yet on shacking up with American. Most news outlets say the European duo is "holding talks," citing a news release posted on BA's website:
British Airways and Iberia are holding talks with a view to an all-share merger between the two companies. The negotiations are supported unanimously by the boards of both companies.
The British Airways and Iberia brands would be retained as part of a combined group.
It is expected that it will take several months to reach agreement on the terms of the merger and to finalise a joint business and integration plan for the combined group.
But the British Press Association says the deal is done, a pretty bold statement given how mergers tend to fall apart as talks proceed. Perhaps they know something everyone else doesn't?
It's definitely trendy these days for airlines to do a bit of merging. The latest one's taking place over the Spanish skies, and we highly approve because it's bringing together two low cost carriers that we actually like.
Spanish LCCs Clickair and Vueling Airlines have agreed to shack up together--with Vueling taking the top bunk. (Sadly, that means Clickair's cool name will disappear.) The two airlines have been negotiating details of the merger for months but just this week agreed that it's the best way to deal with rising costs.
The deal's not a sure thing quite yet: The Spanish authorities have to decide whether this merger goes against competition guidelines. We say go for it, in the hope that we'll get the perfect LCC with on-time flights and luxury leg room.
Southwest Airlines has been shopping for an international partner for some time now, a search that was likely accelerated earlier this year after ATA collapsed. Now the search is over: The low cost carrier just announced that it will initiate a code sharing agreement with WestJet by the end of 2009.
Though WestJet flies to a few destinations in Mexico and the Caribbean, a press release from the two airlines emphasizes the US-Canada link as the big part of this tie-up. The Canadian carrier also goes to Hawaii via Vancouver.
All that said, no specifics on routes or schedules have been released just yet, and the airlines also remind us that some of the details are subject to government approval. No wonder the deal with take 18 months to finalize.
Forgive us if we haven't been breathlessly reporting all the latest merger gossip: All these rumors and anonymous sources have us more than skeptical. But since everyone seems to be involved in something these days, here's a cheat sheet for all the merger mania swirling in the industry:
Delta and Northwest: These two are getting together, pending approval from the US government. You can keep up on both carrier's plans at the pompously named newglobalairline.com. Oh, and before you believe the hype that nothing will change when they get together, Northwest CEO Doug Steenland just announced that, yes, they probably will be cutting some service.
Well. Two days after we call out Continental for throwing together a pointless website, the carrier releases a pretty definitive statement updating the world on its merger plans. Here's what the airline had to say:
You must be nuts to think we're hitching ourselves to a dumpy, cash-hemorraghing legacy carrier who's only hope for survival is us.
Wait. No. The real statement was much more measured, and despite its firm dismissal of a merger, Continental didn't say it would never happen. Here's the real word from CEO Larry Kellner and President Jeff Smisek:
In the current industry environment, the best course for Continental is to not merge with another airline at this time...[We] very carefully considered all the risks and benefits of a merger with another airline, and determined that the risks of a merger at this time outweigh the potential rewards, as compared to Continental's prospects on a standalone basis.
Nice that the carrier is making use of the new website, but couldn't this just go out as a regular press release? And will Continental ever set up RSS feeds on the merger page, or do we just have to keep going back and refreshing the page for further updates?
Was Continental in the minority, thinking the new American Airlines blog was any sort of decent? Must have, cause the carrier has fired up its own stand-alone mouthpiece to spout opinions about airline mergers. You'll find it at co-industryconsolidation.com.
Thing is--and this is right outta the AA playbook--the new site doesn't actually tell us anything worth hearing. Here's a snippet of the "helpful" info Continental shares:
As we've said repeatedly for more than a year and a half, our preference has been to remain independent as long as the competitive landscape remained the same. However, the landscape is changing. We will review our strategic alternatives and make sure we remain a strong long-term competitor.
Southwest should be selling these legacy carriers PR classes.
Before you start planning your next trip with what could be the country's largest carrier, better wait for the deal to be approved. But wait, didn't Delta and NWA already announce a merger? They did, but Northwest's pilots are resisting a deal.
You probably won't notice it on the new marketing website created for the airline, but a mention of the sticking point is there:
With respect to Northwest pilots, Delta has committed to use its best efforts to reach a combined Delta-Northwest pilot agreement, including resolution of pilot seniority integration, prior to the closing of the merger.
In other words: Hang on one sec, while we beat these folks into submission. And we can think of at least one other person who won't like this news: Rep. James Oberstar. The congressman from Minnesota declared his anti-merger stance the last time Delta and Northwest were flirting. Can't imagine he'll enjoy the idea this time around, especially since Delta headquarters will be in Atlanta not Minneapolis.
As for us? We'll be standing by to welcome our new global airline overlords until they can, you know, actually get some pilots on board.
Someone--and we don't yet know who--just offered to take over Silverjet, one of a couple biz-class-only transatlantic airlines. Though its been flying since January 2007, the airline has yet to make any money.
That has us wondering who might've offered to buy it. British Airways is starting its own schmancy transatlantic service, and the deep-pocketed Virgin Atlantic doesn't need to take over a rival--it could just expand. John Weikle has more time on his hands, but Silverjet seems a bit too ritzy--and international--for his tastes.
Despite the shutdowns of niche long-haul carriers like Maxjet and Oasis, analysts are split on whether Silverjet has a chance at turning a profit anytime soon. The airline did carry a record number of passengers in March.
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