Aviation, Business, Management

Iberia and British Airways’ merger (two losers together don’t make a winner)

Finally they had to do it. Slumping for too long with revenues going down the drain finally made both companies not so choosy about each other, specially when the rest of the European partners are already married and the half-blood-European-Americans are not allowed. They finally had to sit together in the only remaining chair.

Borrowed from economist.com, thanks 🙂

Okay, I’m being a bit sceptical here, or even negative. There’s a huge positive thing in the news. At least now the different boards will be able to focus on the real problems of both companies, which are not exactly small. The airlines’ world has been turned upside-down, with some new winners (namely Ryanair who have opened around a half of all the new routes in Europe this second half of the year, and yes, sorry again, I’m a fan of their capacity to generate efficiencies) and some losers: flagship airlines.

They used to be so protected. In fact, they are doing what they are doing in order to be able to attain efficiencies (at least I hope so) but at the same time keep their privileged status (in Heathrow and Madrid) where they have been allocated far more than what they deserved, sometimes in the shape of priceless slots they are holding onto, and sometimes in the shape of better premises than competitors at the same price.

What’s funny is that they intend to do everything at the same time, both rejuvenating themselves and both retaining those beautiful curves. And for that they have chosen the least aggressive partner, of course. God forbid that they had to wake up earlier now they are married. Or maybe it’s the other way round and they are expecting their partner to tell them what they couldn’t tell themselves: to clean their share of their house.

Well, they say you can’t want to follow all the strategies at the same time and be successful. Anyway, Mr. Porter will be proud if they do it. Good luck to the newly wed. Let’s hope that the festivities are short. Inefficiencies and pensions are piling up and, most worryingly, the business model is outdated. Other airlines are becoming more efficient, and I’m not only thinking of low-costs. Time to work seriously. Time to finally realise that an airline is not a ministry!


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