NYTimes.com Article: British Airways Shows Interest in Iberia

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British Airways Shows Interest in Iberia

October 6, 2003





MADRID, Oct. 5 - Days after Air France and KLM said they
would merge, surpassing British Airways as Europe's biggest
airline, Rod Eddington, the chief executive of British
Airways, said in a newspaper interview published Sunday
that his company might merge with Iberia Airlines of Spain.


"Iberia and British Airways, in many ways, are natural
partners in Europe," he said in the interview with the
leading Spanish daily, El País. "Spain is a strategic
market for Great Britain. I think we have a good
opportunity, and so I would like us to end up in each
other's arms."

He declined to give a timetable for a merger, but suggested
it would not happen soon. "We are going to spend the next
6, 12 or 18 months working and watching the success of the
strategy adopted by Air France and KLM," he said.

The airlines already have code-sharing agreements, which
let them book passengers on each other's flights, and
British Airways controls 9 percent of Iberia. Both airlines
belong to the OneWorld Alliance.

British Airways' sales volume - 10.9 billion euros ($12.6
billion) in 2002 - was more than twice that of its
potential partner. But Iberia, according to El País,
controls roughly 15 percent of all routes between Europe
and Latin America.

Mr. Eddington met in Madrid with chief executives of Iberia
the day after the Air France merger made headlines, fueling
speculation that the British and Spanish airlines would
combine. Mr. Eddington said in the newspaper that the
meeting had been planned a year in advance.

http://www.nytimes.com/2003/10/06/business/worldbusiness/06AIR.html?ex=1066446908&ei=1&en=dd96b7348e131770


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