British Airways becomes an attractive bid for U.S. carriers

Ailing carrier, British Airways is beginning to look more and more appealing to U.S. airlines that are finding difficult to stay afloat in the aviation industry. In the wake of problems in the U.S. stemming from a weaker dollar and higher fuel prices, U.S. carriers are searching for a quick-fix solution to support the industry.

American Airlines is in a unique position among major U.S. carriers, as it has not filed for Chapter 11 bankruptcy in order to restructure. It has also formed a firm bilateral partnership with British Airways. In addition, budget carrier, Continental airline, has been pushed aside by the Skyteam group temporarily. Meanwhile, Delta and Northwestern Airlines are in the process of forming a merger as a last-minute option. According to analysts, the U.S. just does not have enough flying room for three major airlines. Some argue that even two airlines are unfeasible.

Continental, which has rejected a takeover from Star Alliance’s United Airline, is now left with option of joining OneWorld, headed by British Airways in Europe.
British Airways is lagging behind its European rivals, i.e. Air France, Lufthansa in terms of expansion on the continent and is looking somewhat feeble as global competitor. The British carrier’s biggest problem seems to be Heathrow Airport, which some say is the worst airport that the U.S. caters to in the European Union. Despite that, the airport is also become British Airways’ negotiating point with American carriers since Heathrow is still the most significant hub for U.S. airlines into Europe.

www.britishairways.com