Airline Affairs

Ba’s Qantas Stake:

Among all the dramas associated with the British Airways/ USAir and Virgin Atlantic situations comes some good news for BA, namely the fact that the Australian government approved on December 17 the airline’s acquisition of 25% of Qantas for $665m.

BA has gone to great lengths to assure Australians that this is not a takeover of their airline but merely an investment. The Qantas board will be expanded from 10 to 12 members of which three will be BA nominees. BA (and losing bidder Singapore Airlines) wanted veto rights on important decisions but this request has been denied, the Australian government wisely saying that the board should have the final say on such issues and that the successful bidder should have an influence on the board with its shareholding.

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