BA-Iberia ‘like two drunks trying to prop each other up’
Sunday, 16 Nov, 2009
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Ryanair described the planned British Airways-Iberia merger as being like “two drunks trying to prop each other up”.
A spokesman for the Irish budget carrier said: “Flag carrier airlines throughout Europe are raising the white flag because they can’t compete with Ryanair’s rapid growth, low fares and no fuel surcharge guarantee.
“Consolidation is the only option for these high fares airlines as more and more passengers switch to Ryanair’s low fares.
“The merger of BA and Iberia is like two drunks trying to prop each other up; both have reported large losses, both are facing a winter of industrial action and both charge high fares and fuel surcharges as their passengers switch to Ryanair’s low fare services in the UK and Spain.
“Since consolidation of Europe’s high fares airlines has never led to lower fares, this merger will be great for Ryanair’s growth and we look forward to welcoming many more millions of BA’s and Iberia’s passengers as they switch to Ryanair’s low fares flights.”
The BA-Iberia merger means there will eventually be just four large airlines in Europe, according to Ryanair.
The low fares giant believes it will be there along with BA/Iberia, Air France/KLM and Lufthansa.
The combined BA/Iberia will carry approximately 60 million passengers a year with traffic declining by 4%/10% currently.
Ryanair will still be bigger carrying more than 66 million passengers this year as it grows by 15%.
“This merger is the latest in a long line of European high fares airlines merging because they can’t compete with Ryanair’s lowest fares and no fuel surcharge flights,” the Dublin-based carrier said.
In recent years Lufthansa has taken control of Swiss, Austrian, SN Brussels and BMI while Air France has bought KLM and Alitalia.
“Ryanair believes that all of these mergers will lead to higher fares and even more fuel surcharges from these flag carriers.
“Today’s announcement bears out Ryanair’s forecast that there will be just four large EU airlines – and of these four only Ryanair is committed to low fares and no fuel surcharges.”
by Phil Davies
Phil Davies
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