BA and Iberia eye Gulf Air takeover
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Gulf Air is one of 12 carriers targeted for takeover by British Airways and Iberia, according to media reports.The two European airlines, which aim to conclude merger talks later this year, plan to create the largest airline group and have drawn up a shortlist of airlines on their consolidation wish list.In addition to Bahrain’s flag carrier, BA and Iberia have pinpointed carriers such as Qantas, Cathay Pacific, Air Berlin, Kingfisher Airlines, Chile’s LAN and Brazil’s TAM.The airlines already have a joint venture planned with American Airlines, which will lead to the creation of International Airlines Group (IAG).Speaking at the launch of a code-sharing agreement with India’s Kingfisher earlier this week, BA CEO Willie Walsh said consolidation was the long-term goal – one that would probably not be completed until he retired for the British airline.”I have sat down with Iberia and we initially looked at 40 like-minded airlines who believe that the future of the industry lies in consolidation,” he said.”We have narrowed this down to 12. Becoming the biggest airline group in the world is not a bad ambition to have.”The creation of IAG is expected to be completed by the end of the year. Walsh will become Chief Executive of IAG, and BA finance director Keith Williams will become Chief Executive of BA. BA and Iberia will continue to operate as separate brands following the merger.
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