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British Airways buys L'avion, transatlantic business class market successfully monopolized {Gadling}
Jul 2nd 2008 4:02PM How does this acquisition impact the British Airways and OpenSkies brands?
The effect of this acquisition on the parent airline's brand should be generally positive, due to two key factors. Firstly, the lack of competition would surely help the OpenSkies brand since there is no direct comparison for their services. Moreover, lack of competition results in lower price pressure - which means that OpenSkies can charge more realistic fares and be profitable sooner than later.
Secondly, the acquisition is of an all-business class airline, which adds greater value to BA/OpenSkies, since L'Avion had planes that offerred more luxury to the customer. So instead of sprucing them up, BA just needs to remove some seats to include Economy class, if they choose to.
In the end, this does mean the end of cross-Atlantic all-business airlines, and bodes well for British Airways as well. A win-win situation for both the airlines. A questionable one from the customers' perspective though.
Talking travel with Patricia Schultz, author of "1000 Places to See" (plus book giveaway) {Gadling}
Jun 28th 2008 3:24PM Paragliding over Rio de Janerio
