Tuesday, 9 October 2012

British Airways Delivers Qatar Coup After Charm Offensive - Businessweek

Qatar Airways Ltd.’s move to become the first Gulf member of a global airline alliance represents a coup for British Airways (IAG) chief Willie Walsh, who had pursued the accord, and may lead to deeper ties between the companies.

The deal secures the second-biggest unattached carrier for Oneworld and gives British Airways and allies including American Airlines access to destinations in high-growth markets in Asia, Africa and the Middle East, where the U.K. operator has lagged behind rivals Air France-KLM Group (AF) and Deutsche Lufthansa AG. (LHA)

Qatar Air will become a Oneworld member within 18 months, with British Airways as its mentor, the companies said yesterday in New York. The accord was secured after Walsh, chief executive officer of BA parent IAG, courted counterpart Akbar Al Baker and comes after Qantas Airways Ltd. (QAN) ended a 17-year tie-up in favor of a deal with Emirates, the top Gulf carrier, and Air France agreed to start code-sharing with regional No. 3 Etihad Airways.

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