BA’achief executive Rod Eddington warned yesterday European airlines must merge or face ruin and he confirmed that BA was in renewed talks with KLM.
Eddington predicted that many of the European flag-carriers would disappear. “There may be more than three but I think there will be three major international carriers (in Europe,BA,LH,AF), rather than the 15 or so that exist now,” he said.
Last week by LH’s chief executive Juergen Weber, who predicted that mid-size European airlines such as Olympic would not survive because of the 11th September events.
I think that saying that may be only 3 major European airlines is a bit over the top,but i definatley think that we will see in the coming months airlines such as Virgin being forced into alliances to stop them going bankrupt,also new alliances being created between airlines.What are your opinions?
Regards Saab 2000
By: keltic - 26th October 2001 at 18:03
RE: Merge or face ruin?
Well it doesn´t have to mean a centralized hub with a centralized identity. Whats about different national airlines operating their natural niches?. I am talking about common management not fusion of symbols. As far as I am concerned, the image is not so important. In any case I understand who cares about it. I am aware how import is for some countries the national flags and colours. But one things, guys, if many european airlines don´t merge, they will dissapeared. That´s a sad fact. I feel that it´s necessary a bit of commercial pragmatism about merging national airlines. My only concern is competition. In any case, sometimes new operators come to market and this doesn´t mean lower fares. In Spain, the three regular airlines have agreed in secret the prices. I don´t know.
By: Rabie - 24th October 2001 at 20:44
RE: Merge or face ruin?
yes it would be a problem one big one but it can’t stay as it is – only easy jet and others like them make money – all others are struggling and they shouldn’t be.
howabout an open skies europe only for european airline ? that way it will end up with 2+ airlines (a oneworld and a star and maybe another) running round europe.
just my sixpence worth
rabie :9
By: mj2292 - 24th October 2001 at 18:52
RE: Merge or face ruin?
Strong opinions! I think that airlines would rather cut back and keep going than merge into a pan european airline! I as a customer feels a sense of pride when i see british airways in some far off destination (doesnt everyone?). A pan european airline wouldnt work, where would it hub? Flights to where? How would it connect all the cities like BA do?
I agree with what you are saying about small not meaning weak, just lets watch as these small strong airlines become bigger and bigger…..
Michael :)~
By: keltic - 22nd October 2001 at 18:50
RE: Merge or face ruin?
Who knows which ones will survive at the end. It seems that mergers are needed, not because I think the situation is serious (I think all this fuss is to reduce capacity and cut jobs) but in order to compete with the american ones. The problem is, like in case of money, people look for hint of soveranity in airlines more than mere carriers. Citizens are not pragmatical and think they are more….French, British, Spanish….whatever is they have the flag on planes. I think Pan European airline should be created (it doesn´t matter if it has the blue and stars flag on it) but something strong. Competence risk?, probably but big Swissair collapsed and small Easyjet is belligerant in many routes. Be small doesn´t mean being weak. In here, we have serious doubts that Air Europa could survive. I SAY MERGE
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October 22, 2001 at 5:04 pm