views

CITY VIEWS: ARE AIRLINE MERGERS THE ONLY WAY THAT THE LIKES OF BRITISH AIRWAYS CAN SURVIVE?

FRANK EGER | GLOBAL BULK CARRIERS
“I think more mergers are inevitable given the increasing oil and transportation costs. Bigger is better these days, but it was a bad move for British Airways. They shouldn’t have merged with Iberia but somebody like Lufthansa, which is a profitable company. ”

RYAN PIPER | GRANT THORNTON
“Margins are being squeezed all over the airline industry and, with so many cheap flights available, the only way to make money is by securing volume. British Airways and Iberia makes no sense as there are no brand or customer base synergies between them.”

SALLY GRIFFITHS | BAYLEY NEEDHAM
“I think we will most probably see more firms deciding to merge in order that the industry can remain competitive. The British Airways and Iberia merger will push out the smaller airlines operating in the UK. ”