BA in talks with Brussels Airlines
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British Airways (BA) is reportedly in takeover talks with Brussels Airlines, according to The Times of London. The approach is thought to have been initiated by American Airlines. However the move may not be as straightforward as it initially appears; BA’s fierce rival, Virgin boss Richard Branson, owns a 30% in Brussels following its merger with Virgin Express in 2006.
Lufthansa, the German flag carrier, has already made an offer for Brussels, and BA is now weighing up whether to make a formal bid. The airline is likely to be valued at about EUR150 million (US$214 million). A source said; “BA has approached the board of Brussels and we are waiting to see if they make a serious offer.”
Doug McVitie, Managing Director of aviation consultancy firm, Arran Aerospace, believes a BA move for Brussels would be a logical step. “Brussels makes much more sense for BA than either Alitalia or Austrian. Air France-KLM is in the driving seat if they are daft enough to go for Alitalia, and Lufthansa will not want to let Austrian slip away.”
A wave of takeovers, mergers and alliances is expected to leave BA, Lufthansa and KLM-Air France as the dominant international carriers in Europe.
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