BA to buy American Airlines???

http://news.sky.com/skynews/article/0,, ... 73,00.html

Heard his earlier on a news bulletin. So what will they be called - British American?

[Bazz]

They would only be allowed a 25% stake (same issues as SRB faces with VA) so I don't quite see how this would work?

[Pete]

Yup, if they're squabbling about SRB having undue influence over VA, even as a minority shareholder, sure as eggs is eggs, they won't let BA buy up AA.

Pete

Well firstly its important to note that the article says 'a group of businesses including BA', so that might handle the ownership issues.

Also, there have been stories for years about BA and AA getting closer together. I think I remember Rod Ellington saying that the reason they supported legal changes proposed on US ownership was to bring this about ...

However, I can't see this winning through - there are huge US regulatory issues to overcome. And if Continental and Delta made such a stink about Virgin America, think how they'd quake in their pants at a competitor the size of BAAA (that spells baaaaa! how sheepish!).

[Bazz]

Will we see the resurrection of the "No Way BA-AA" slogan?

[Scrooge]

From what I am hearing it is Morgan Stanley that is l;ooking to buy AA with BA acting as a management type thing.

This doesn't make sense.

1. AA don't own too many slots at heathrow

2. BA needs to get it's own shop in order first. Both the company and finances are in P.Poor state at the moment

BA can't even run itself properly let alone AA - I can't see this happening from a legal, practical or competitive view.

VS.