Originally Posted by Alan Fry (Post 35399339)

No, there will be savings from a BA/Easyjet merger and BA would do a takeover of Easyjet with shares, if that was the case ten BA/Easyjet would work

Originally Posted by Tim Deegan (Post 35399344)

Easyjet's profits would just be swallowed up by BA's losses, and then Easyjet's service would suffer, probably leading to them changing from being the best budget airline, to being as bad as or worse that Ryan Air.

How is your logistics company getting on Alan? I presume they aren't very busy?

I thought you didn't like big corporations, and preferred smaller independent companies instead?

Originally Posted by Alan Fry (Post 35399351)

Easyjet service will not suffer, it is already worse than BAs for starters and like you said, users of low cost carriers do not care much about service

I like companies (big or small) that are well run and care more about profits

Originally Posted by Tim Deegan (Post 35399361)

You have never used Easyjet, so how do you know?

Easyjet do what they are designed to do very well indeed, and make big profits from doing so. They are a completely different type of airline to BA.

BA on the other hand have been lowering their standards (according to many users), are overcharging, and are making big losses.

The way for BA to compete is to concentrate on their profitable business customer routes. And then either shut down their none profitable routes, or make them profitable by operating more like Easyjet, and lowering their prices.

Originally Posted by Alan Fry (Post 35399365)

You cannot deny that even Easyjet cannot provide the same service as a full service airlines

Originally Posted by Alan Fry (Post 35399365)

If I was running BA/Easyjet, I would provide both services on the same routes, but with far more Easyjet services on those routes and less BA services (more do want Easyjet rather than BA), os it could work for both airlines. I will also improve BA's standards and retain Easyjet's standards

In other words, it will be like Qantas/Jetstar (where I would also be looking for BA to merge with)

Originally Posted by Tim Deegan (Post 35399380)

Of course they could if they wanted to. But they would have to charge more, and like BA they would lose customers. So it's a no brainer Alan :rolleyes:



You aren't runnig BA, and you never will be.

As I said previously in this thread (read the posts), BA tried this and failed. Then Easyjet took over GB Airways from BA. Easyjet also bought out Go in 2002. So if anyone is going to take over anyone, then Easyjet would be more likely to take over BA, or at least part of it.

Originally Posted by Chris (Post 35399275)

That's why you're not running BA, or any other large business. You are quick to offer an opinion but if your prodigious post rate has proved anything, it's that you largely comment from your position in orbit around some planet other than this one.

Publicly-traded companies like BA cannot just buy up other companies in order to 'get the profit'. Buying another company on that scale is a vastly complex and expensive business. It costs a lot of money to do it - money that belongs to BA shareholders who could, if they wished, simply take out of BA by selling their BA shares and then invest in Easyjet instead. That would be a rather more efficient use of capital.

A PLC's remit is to enhance shareholder value, not destroy it, or even hold it static (which in a market economy is the same as destroying it). BA would have to show how buying Easyjet would *improve* return on capital employed. It won't try to buy that company because it's unlikely it old show any such thing.

Oh, and the competition commission would probably have something to say about it too.

Originally Posted by Tim Deegan (Post 35399380)

You aren't runnig BA, and you never will be.

Originally Posted by Alan Fry (Post 35399390)

If I was running BA/Easyjet then I would keep Eastjet as a low cost airline, also the reason Go failed was that when it launched, the market was crowded with LCCs and Go was not big enough to compete, BA should have bought Easyjet then and they would need to now

Originally Posted by Sirius (Post 35399394)

I don't think he knows there is a difference between a chat programs and a forum.

---------- Post added at 17:32 ---------- Previous post was at 17:31 ----------



Can you imagine the mess if he was

Originally Posted by Hugh (Post 35399393)

Point of information - BA/IAG made a pre-tax profit of over 500 million Euros last year.

Originally Posted by Tim Deegan (Post 35399404)

You need to get a few facts straight in your head Alan:

http://en.wikipedia.org/wiki/Go_Fly

Originally Posted by Alan Fry (Post 35399405)

I do know the diffrence and I would be no worse at running BA than the current management

Originally Posted by Alan Fry (Post 35399408)

It was sold becuase of a change of management, BA should still have bought Easyjet

Originally Posted by Tim Deegan (Post 35399412)

Alan we have all read your ideas about running a company, and I think Gerald Ratner had a better idea about running a business :D

---------- Post added at 17:45 ---------- Previous post was at 17:44 ----------



Easyjet bought part of BA, not the other way around. :rolleyes:

Originally Posted by Alan Fry (Post 35399419)

I would certainly run a business better than Gerald Ratner :D