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BA-Iberia M&A shows Asian airlines on buyers radar
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BEIJING: The acquisition plan outlined by British Airways and Iberia aims to land in Asia, with several viable companies waiting at the end of the runway.
BA-Iberia have earmarked Asia as a key region for expansion once their own merger completes, though restrictions on foreign investment could narrow their range of acquisition targets.
There was a time not so long ago when that target list would have been thin. But the airline industry's growth across Asia has put forth a strong list of possible candidates.
Analysts believe India's Kingfisher Airlines, with whom BA signed a codesharing agreement earlier this week, would be BA's prime target along with Australia's Qantas.
They also view Chinese carriers Air China, China Southern and China Eastern as willing recipients of foreign investment.
BA's Chief Executive Willie Walsh said earlier this week that BA and Iberia -- whose merger will create the world's third-largest airline by revenue and be called International Airlines Group (IAG) -- had compiled a list of 12 potential targets. -Reuters
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