Manufacturing Industry

British Airways may team up with Swissair

Airline Industry Information, Sept 25, 2000

After abandoning merger talks with KLM Royal Dutch Airlines, British Airways will apparently be conducting merger talks with Swissair according to recent speculation.

The British carrier has also indicated that it may consider offers for its low-cost airline Go, or that it may demerge and list Go as a separate entity on the London Stock Exchange according to PA News.

Commenting on possible talks with Swissair, a spokesperson for British Airways stated, `We speak to a wide range of people about a wide range of things. Much of that does not come to anything [but] consolidation will take place in Europe and we believe we will become an active participant.`

An aviation analyst has stated that it is unlikely British Airways will sell Go just yet as the low-cost carrier is still in its start-up phase. The analyst did indicate however that British Airways was probably keen to `focus on its core business to restore it to a sound financial performance.`

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