As the details emerge of the deal - it has been agreed - the regulatory fun begins.
The Professor understands the deal will be very similar in appearance (to the customer) as the AF/KL with the retention of brands and coordinated activity. However since AF/KL was a takeover - the process of protracted approvals will be long and complicated.
It is not quite a merger of equals. I believe it is a 55%45% split in favor of the former British Carrier.
However the harmonization of rules particularly union contracts will take years to accomplish. Regulatory approval is another matter with the 4 way atlantic alliance still not agreed. BA will have to give up some slots at LHR and IB some at MAD.
With no viable local Spanish Carrier (Air Europa perhaps) able to pick these up in MAD then it becomes a little harder to work out. Virgin is of course going to make a lot of noise about things at LHR.
So let the fun begin!
Cheers
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