Entries in BA (8)

Tuesday
May222012

Nine BMI routes get BA numbers as integration proceeds

British Midland International routes flown between London's Heathrow Airport (IATA: LHR; ICAO: EGLL) and nine European and African destinations will acquire British Airways flight numbers tomorrow, as part of the integration process first announced late last year.  The nine routes affected will be those flown between Heathrow, and the BMI destinations of Agadir, Morocco; Basel, Switzerland; Bergen, Norway; Casablanca, Morocco; Hanover, Germany; Marrakech, Morocco; Nice, France; Stavanger, Norway; and Vienna, Austria.  According to British Airways, all departure and arrival terminals at Heathrow will remain the same, as will estimated departure and arrival times.

On April 19 this year, International Consolidated Airlines Group, led by former British Airways CEO Willie Walsh, bought BMI from Lufthansa.  BMI withdrew its membership in the Star Alliance last month.  British Airways is part of the Oneworld airline alliance.

Also, Virgin Atlantic will launch a four times weekly non-stop round-trip route between Heathrow and Vancouver International Airport (IATA; YVR; ICAO: CYVR) Thursday.  The route will operate in both directions on Tuesday, Thursday, Saturday, and Sunday.  According to results returned by the search engine on Virgin Atlantic's website, the route will be operated with the Airbus A340-300.  The flight is approximately ten hours long in both directions.

related story

BA and Iberia respective shareholders both approve merger (Nobember 29, 2010)

original stories

bmi flights changing to BA flight numbers (British Airways)

BMI to be 'integrated quickly' into British Airways (Airport Watch UK)

Virgin Atlantic Launch Flights to Vancouver (Virgin Atlantic)

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Friday
Jan212011

British Airways and Iberia unite under one holding company

British Airways (BA) and Spain's largest airline Iberia officially merged under the holding company International Consolidated Airlines Group earlier today.  This move creates the second-largest European-based airline by some measures, and the third-largest by others.  Germany's Lufthansa was the continent's largest airline by most major measures in 2009.

The merger will give British Airways greater access to South America than it had previously, and Iberia will enjoy greater access to North America than it had previous to the merger.

The final shares of British Airways stock were traded on the London Stock Exchange late yesterday, according to The Guardian, a U.K.-based newspaper.  The merger is valued at a little more than 6 billion GBP (7.09 billion EUR, 9.59 billion USD).  Former British Airways CEO Willie Walsh will assume the same post at the new company.

related stories

BA and Iberia respective shareholders both approve merger (November 29, 2010)

British Airways resolves Iberia merger concern over deficit (September 23, 2010)

DOT grants anti-trust immunity to BA-Iberia-AA alliance (July 22, 2010)

BA-Iberia merger approved by the EU (July 14, 2010)

original stories

British Airways, Iberia merger takes effect (Yahoo Finance)

British Airways trades for last time ahead of Iberia merger (The Guardian)

Monday
Nov292010

BA and Iberia respective shareholders both approve merger

Earlier today, shareholders in British Airways and Iberia Airlines voted "overwhelmingly" in favor of a proposed merger between the two European carriers which would create the third-largest airline in Europe.  Among European-based carriers only Lufthansa and Air France-KLM would be larger.  The resulting business entity will be called International Consolidated Airlines Group.  The London-based Daily Telegraph reported that Willie Walsh, CEO of British Airways, would like to consolidate additional airlines within this new holding company in the future, and that this is the reason for the "bland" holding company name.

The merger is worth an estimated 5.7 billion GBP (6.76 billion EUR; 8.89 billion USD) and will be executed entirely with company stock.  According to the New York-based Wall Street Journal, shareholders of British Airways will receive a share of International Consolidated Airlines Group for every share of British Airways they own, and shareholders of Iberia Airlines will get 1.0205 shares of the new holding company for every share of Iberia.  Iberia reported on its website that five years from now, the new multinational corporation expects the airlines' combined efforts to produce 400 million EUR (337 million GBP; 526 million USD) annually in excess of the sum of the two airlines' individual expected revenues.

Both British Airways and Iberia are members of the Oneworld airline alliance.

Operational headquarters of the airline resulting from this merger will be in London, and corporate headquarters will be in Madrid.  Each city is the capital of its respective country.  Despite the move, the two merging airlines "will keep their separate brands and identities" according to the Wall Street Journal today.  The merger is scheduled to be officially complete on January 21 next year.  The Daily Telegraph noted solemnly that British Airways' individual ticker symbol would no longer be visible on the London Stock Exchange, as of January 24 next year.

Mr. Walsh, and Iberia CEO Antonio Vázquez Romero will hold a press conference at Madrid's Hotel Intercontinental on November 30, at 10:00 in the morning local time, according to Iberia's press release.

British Airways is the highest-profile airline headquartered in the United Kingdom, and was founded in 1974, from the merger of the British Overseas Airways Corporation and British European Airways.  It is based in the borough of Hillingdon in London.  Its largest hub is Heathrow International Airport (IATA: LHR; ICAO: EGLL).  It operates 239 aircraft (Airbus and Boeing) to destinations on all six permanently inhabited continents.  Company stock is currently traded on the London Stock Exchange, although the "BA" ticker symbol will be replaced by the ticker symbol for International Consolidated Airlines Group next January 24.

Iberia Airlines was founded in 1927, and is the largest carrier based in Spain, by number of passengers carried.  It is headquartered in Madrid, and maintains hubs at Barajas Airport in the Spanish capital (IATA: MAD; ICAO: LEMD), and also at Barcelona Airport in the northeast of the country (IATA: BCN; ICAO: LEBL).  It operates an all-Airbus fleet of 116 aircraft to 99 destinations in Europe, Asia, Africa, North America, and South America.

related stories

British Airways resolves Iberia merger concern over deficit (September 23, 2010)

DOT grants anti-trust immunity to BA-Iberia-AA alliance (July 22, 2010)

BA-Iberia merger approved by the EU (July 14, 2010)

original stories

BA, Iberia holders approve merger (Yahoo Finance)

Iberia and British Airways shareholders approve merger (Iberia Airlines)

BA, Iberia Shareholders Back Merger (Wall Street Journal)

British Airways shareholder vote to trigger end of BA name on stock market screens (Daily Telegraph)

Thursday
Sep232010

British Airways resolves Iberia merger concern over deficit

Earlier today the largest airline based in Spain, Iberia Airlines, cleared another obstacle to its anticipated merger with British Airways (BA).  Iberia announced that it was happy with British Airways' plan for dealing with its 3.7 billion GBP pension deficit (4.36 billion EUR; 5.8 billion USD).  The United Kingdom's highest-profile airline showed Iberia how it plans to put 330 million GBP (388.55 million EUR; 517.67 million USD) annually into pension funds for the next sixteen years.

The anticipated merger would unite the two airlines under the same holding company, called International Airlines Group.  However, each of the two airlines would retain its long-established logos and branding schemes.  British Airways CEO Willie Walsh would become CEO of International Airlines Group, while Iberia CEO Antonio Vasquez Romero would become Chairman of the Board.  The holding company's operational headquarters would be in London, and its corporate headquarters would be in Madrid.  Iberia claims the merger will allow visitors from Europe to obtain inexpensive airfare to Central America.  The website www.beatthebrochure.com reports that the merger will make available "a vast array of services offering cheap flights" between destinations all over the globe.

British Airways was formed in 1974 with the merger of the British Overseas Airways Corporation and British European Airways.  It is the United Kingdom’s highest-profile airline, and is headquartered very near its main hub Heathrow Airport (IATA: LHR; ICAO: EGLL) in the London borough of Hillingdon.  British Airways flies a fleet of 237 aircraft to destinations on all six permanently inhabited continents, and also maintains a hub at Gatwick Airport (IATA: LGW; ICAO: EGKK) southeast of London.

Iberia Airlines is the Spanish flag carrier, and was founded in 1927.  It is based in the national capital of Madrid.  Iberia maintains its largest hub at Barajas Airport in Madrid (IATA: MAD; ICAO: LEMD).  Spain's second-largest city Barcelona is a focus city for the airline.  Iberia flies 116 aircraft to 120 destinations in Europe, Asia, Africa, North America, and South America.

related stories

DOT grants anti-trust immunity to BA-Iberia-AA alliance (July 22, 2010)

BA-Iberia merger approved by the EU (July 14, 2010)

original story (www.beatthebrochure.com)

Wednesday
Sep082010

British Airways enjoys strike-free August, fairly steady numbers

The number of passengers carried by British Airways (BA) this past August was down slightly from the number the airline posted in August 2009.  The airline explained this decrease by pointing out that it cut capacity on a number of routes including between London and Hong Kong.  However, Unite the Union, which represents the airline's cabin crew employees, claimed that instability created by the airline's stubbornness in labor negotiations, is to blame for the decrease.  Unite staged a series of strikes this past spring, and has hinted at additional strikes during Christmas this year if the two sides cannot reach a compromise.  British Airways claimed that it has the ability to bring on temporary non-union cabin crew workers "in large numbers," to fill in for any unionized workers who would participate in any strike later this year.

In 2010, strikes have cost the United Kingdom's highest-profile airline around 150 million GBP (231.7 million USD; 182.5 million EUR).

British Airways was founded in 1974, from the merger of the British Overseas Airways Corporation and British European Airways.  It is headquartered in the borough of Hillingdon in London.  Its largest hub is Heathrow International Airport (IATA: LHR; ICAO: EGLL).  Unite the Union is a British and Irish trade union formed in 2007 with the merger of Amicus the Union, and the Transport and General Workers’ Union.

related stories

British Airways and cabin crew union adjourn without agreement (August 2, 2010)

BA links CEO’s bonus to ending labor disputes (June 10, 2010)

Unite says it will strike through summer if demands not met (June 9, 2010)

original stories

British Airways strikes fail to deter travellers (Daily Telegraph)

BA faces Christmas strike threat (Daily Telegraph)