A new 3 way is being proposed. BA/AA/CO. This far more appropriate than the proposed mergers in our view and is the appropriate response by all 3 players.
Digging beneath the surface - it is interesting to see who wins here. Actually all 3 do.
BA and AA get further into bed. The likelihood is that the US DoT will finally allow the transatlantic version of the Code Shares to take place as a result.
AA gets a long sought after link to CO and protects its base. Fortress Texas! AA has benefited for many years from the withdrawal of DL from the Dallas hub. This has left fares high.
CO probably gets the most immediate value with incremental revenue which should outweigh the loss of the Skyteam business.
BA's shares rose this morning 5% on the news.
No comments:
Post a Comment