BA CEO Walsh says combined BA-IB eyes 12 potential takeover targets

International Airlines Group, which will become the holding company of the combined British Airways/Iberia if shareholders agree to the merger in coming months, has defined a list of 12 potential airlines to merge with or buy, BA CEO Willie Walsh said Sunday at a press conference in Mumbai.

BA and IB signed a definitive merger agreement in April (ATW Daily News, April 9). Walsh, who will head IAG, said the list of 12 potential takeover targets was narrowed down from an original list of 40. He pointed out that the group will not pursue all 12 targets.

"The ambition of International Airlines Group is to consolidate this industry further and that is why we didn't call the combined company something like BA-Iberia," he said, noting the list is "just to give us a focus. We have had a number of meetings where we have looked at airlines around the world and identified those that would be attractive to us. We have not had any discussions with any airlines. There is nothing going on at the moment."

While declining to name any of the targets, he confirmed to The Daily Telegraph that the future tie-ups will be on the basis of 100% ownership rather than a new form of alliance. "It's with a view to full merger or acquisition," he said, adding, "When looking at this list, we have taken a view on how difficult a transfer would be. Some would be possible almost immediately. Some may be very difficult."

The list, which focuses on carriers in emerging markets, includes at least one LCC. "Latin America is very much on our agenda," he said. "If there was an opportunity to include a South American carrier in our portfolio, we'd be very interested."

British Airways CEO Willie Walsh. Photo: Courtesy, British Airways.

Discuss this news 24

07 Sep21:04

Greed,greed and more greed

By Tom.

Greed,greed and more greed and less choice for the travelling public. May you fail miserabely!

07 Sep21:05

Greed,greed and more greed

By Tom.

Greed,greed and more greed and less choice for the travelling public. May you fail miserably!

07 Sep21:55

Willie Walsh is dreaming in

By Khawaja Javaid

Willie Walsh is dreaming in broad day light

07 Sep22:37

The market is moving towards

By glenn e pickard

The market is moving towards consolidation, and Willie has no option but to move with it or get left behind. AF/KLM, DL, UA/CO and LH have already been there and done that.
Why not have Easyjet & GOL feed into the primary BA and IB hubs/systems?
The Regulators job will be to ensure strong competitive elements remain on all city pairs;ownership should be secondary.

08 Sep00:25

It appears to me; Tom thinks

By Mike Clayton

It appears to me; Tom thinks he's living in the 1900s still! And I'm being kind here, dear boy!

08 Sep03:55

Willie Walsh has demonstrated

By Steve

Willie Walsh has demonstrated that he is unable to manage BA's staff ..how can he be expected to manage the new 'super-carrier' any better? Of course he is doing his best to destroy all the unions involved instead of working WITH his staff to modernise fairly, but perhaps he could learn something from Southwest's approach before being allowed to destroy the whole concept of healthy competition? If I was a shareholder of BA I would seek to have him replaced NOW before he creates one of the biggest disasters in commercial aviation history..

08 Sep04:04

I beleive this is excellent

By i.Karimi

I beleive this is excellent idea. Willie can do it. May i recommend also if he look into Middle East, specially the Gulf region and Gulf Air could be part of IAG. Good luck Willie.

08 Sep04:19

Tom, Get your head up out of

By Anonymous

Tom,

Get your head up out of the sand and look at the world around you! In this industry, it's now the survival of the fittest and small is no longer beautiful. And how does it offer less choice to the public? It's not as if they will be allowed (or even want) to buy competitors - it sounds like they want to build a proper global brand, not just bits here and there.

Maybe you think BA should still be BEA and BOAC, or even Imperial Airways and BSAA....

08 Sep04:26

The move is interesting. The

By David Larcher

The move is interesting. The trend is there anyway. I think I would do the same in his position. However, it will be critical to see the real complementarity that he could acheive with these airlines and how he will manage to make the regulator swollow the pill.

08 Sep04:27

Steve, I -am- a shareholder

By Anonymous

Steve,

I -am- a shareholder in BA and my view is that he's a breath of fresh air and the best Chief Exec they've had in many moons for actually trying to sort out inefficiencies that seem to have built up over decades.

I, like many thousands of other shareholders would seriously hate to see him go. Long live Willie!

08 Sep04:56

They are so desperate! One

By Anonymous

They are so desperate! One World is the alliance of the no-brands. And of course they have to say they're keen on Latin America - they may loose LATAM to Star Alliance and then what? What a great alliance with BA-IB, AA and Malev, RJ, S7 and AB! Wow! I think they'll be successful buying second-league airlines, that's it. And I wish LATAM will be going to Star and be big there rather then staying in OneWorld and be in the shaddow of what Iberia wants them to be. If there's someone who's living in the 1900s here, that's Iberia and they like to play their "colonial dominance" in all latin america. Keep them underserved and well dependent on Madrid!

08 Sep05:34

Steve, I am also a BA

By GP

Steve, I am also a BA shareholder and Willie is only doing what should have been done decades ago. It is only a small element of the staff who are in dispute, and even they can not seem to agree what the dispute is over. Also if I remember correctly most Southwest staff are non unionised. That in itself says something.
Consolidation is inevitable with customers who want to pay less for more and costs such as fuel, landing and nav fees over which all airlines (even Ryanair) have no control, going ever upward
Air travel is not a god given right contrary to what James Oberstar and some of the US Govt seem to think, it is a shrinking market that needs to be chased and attracted.

08 Sep05:42

Willie Walsh cant even run

By Kapo

Willie Walsh cant even run his own airline, now he's CEO of IAG. There seems to be an exponential inverse relationship for rewarding performance in management -Falling Up.

I really dont know how they will acquire any controlling interest in airlines outside of Europe with reform for regulatory factors such as liberalistaion, air service agreements etc. moving along at snail's pace in most parts of the world. In Europe there really are slim pickings available outside the dominant LCCs.

Turning to Oneworld partners it wont be possible to buy AA,QF,CX in other parts of world, even basketcase JL would probably meet resistance from Japanese Government. LAN & TAM are bedding down a merger, with further question marks over which alliance that combined entity will choose. RJ doesn't provide much strategic interest apart from feeder to Levant, and MX are they still flying?

Some speculation on GF and SAA has been raised, but Asia is where the growth is and it is more probable that Asian carrirs will have the financial & market clout to be the real protagonists in airline consolidation. With this in mind Kingfisher may be useful, but how is it travelling financially.

Until effective regulatory reforms are made in Commercial aviation worldwide, there is little additional gain that a minority stake provides that present day alliances already offer, other than having a foot in the door. Whether this is the most efficient use of capital is questionable.

As for Willie good luck with Falling Up!

08 Sep06:15

Like some others have quite

By Anonymous

Like some others have quite rightly stated, Willy Walsh is day dreaming. Under the current environment where individualism is at play in most of the western world, no airline business will thrive irrespective of the merger/consolidation position. Empirical evidence suggests that the concept does not work well in the current environment where airline deregulation and airport privatisation are promoted. You can compare the finacial results of Dubai based Emirates and that of European/ American airlines.

08 Sep08:39

Old Wankin Willie seems to be

By bimjim

Old Wankin Willie seems to be seeking as much publicity as RyanAir's O'Leary... and with the same kinds of ridiculous statements and proposals.

C'mon Willie, get real!!! You can't even handle your own employees but you want to take on those of 12 more airlines? Maybe it's time you AND your Board should; be shown the door by the suffering shareholders.

08 Sep09:10

Wow! Very, very ambitous! And

By Livingstone

Wow! Very, very ambitous! And even more ambitous to shout it out to the whole world. If only the announcement won't bite him in his own tail...

...because BA is in the dark red almost ever since he took over as CEO
...because he didn't earn any money with EI either
...because the BA-IB merger will still need a lot of managment and financial resources before it will yield any profit
...because there are still lots of political obstacles before an airline outside Europe can be bought a "100%"
...because any airline that could be bought "almost immediately" is most certainly a basket case in desperate need of money (and they will queue at the BA doorstep now)

So actually going down that alley would be like walking into a mine field in broad daylight in my opinion. Look at what happend in the financial sector just a year ago. Or will he choose the politicians path: Create the mess and leave it to somebody else to clean up?

08 Sep10:47

ENOUGH with the Emirates

By IguanaDC3

ENOUGH with the Emirates comparisons already. It's an apples-to-oranges exercise in folly. They're a flash-in-the-pan which will self-extinguish in due time under the wgt of an air force's worth of fatso A380s. 'nuff said.

Oh, & to Steve above: Why's it always leadership's job to work with labor? Why's it not a 2-way street? Let's have Big Labor work with Mgmt as well!

08 Sep14:15

Great idea

By Wolfmann

Great idea

08 Sep14:16

Well said

By Wolfmann

Well said

08 Sep14:18

The Cabin Crew need to wake

By Wolfmann

The Cabin Crew need to wake up n smell the roses

08 Sep17:24

Bravo Willie,it's time to

By Tony

Bravo Willie,it's time to take over AY and SK(sk should leave from star asap) and show LH where is their place!Good luck for BA and new IAG.

08 Sep20:22

This is the reality of the

By Richard

This is the reality of the airlift industry today. Has anyone seen how big the American airlines have become? [Think Delta, and the 'New United'] then you will see that BA has a lot of catching up to do, even with AF - KLM and the German juggernaut, Lufthansa.

08 Sep23:49

Willie Walsh dream will never

By Khawaja Javaid

Willie Walsh dream will never come true

11 Sep18:22

Let me make very clear that

By Anonymous

Let me make very clear that BA has a HUGE pension deficit and is not a healthy company. The massive losses BA made in the last 2 years are well over 900 milj GBP! This year BA is on target to break even and maybe even make a profit. Since Walsh has been a CEO as BA it has been a nightmare for BA and their staff. Let me remind you of the T5 opening disaster, bad fuel hegging, ticket price deals with Virgin and the huge fines that followed. Now Mr Walsh runs his company like a bully and is forcing his frontline staff to break their contract or push them out. After the strikes of Unite, Mr Walsh does not care about a solution anymore and he will do exactly the same with you guys, at Iberia, when he is fully instated as CEO of IAG. The International Airline Group which is only interested in Money and Power. Forget when he says that "it will have the best interest in our passengers and staff". Pure GREED, GREED and GREED....see comments above. I fully agree! Get ride of this clown before its far 2 late.

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