Thursday, 8 April 2010
BA will fly high with Iberia deal
Full article on guardian.co.uk
Just like the bookies, the City has a remarkable knack for getting to the nub of an issue. It seems whenever the serious matter of money is concerned, the invisible hand of the market has an almost transcendental capacity for clairvoyance – far more so than the meanderings of journalists or pundits.
So it was last month, when shares in BA spiked dramatically upon the (one would assume) worrying news that strike talks with Unite had collapsed. And so it will be again today, now that Britain's flag carrier has sealed a crucial merger deal with Spanish airline Iberia.
International Airlines Group, as the new company will be called, is unlikely to win any awards for its name. But the commercial reasoning behind this partnership could not be sturdier, and the synergies it looks set to bring about – estimated to raise a staggering £350m for the airlines every year – should be welcomed with open arms by shareholders, customers and employees. And yes, that includes cabin crew...