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Inside Track: British Airways And Iberia Advance Merger Plans
NOVEMBER 16, 2009 --
The boards of British Airways and Iberia this month signed a memorandum of understanding, bringing the airlines one step closer to the all-stock merger that's been more than a year in the making. Operating as a single holding company, dubbed TopCo, the € 15 billion merged entity would retain each brand as a national flag carrier, while preserving the current operations of each airline. Completion of a deal could take another year. The carriers expect to sign a definitive merger agreement in the first quarter next year, which will require shareholder approval no later than "early November 2010, with completion expected to occur approximately one month following such approval," they said. The deal requires approval from regulatory authorities and both carriers' shareholders. British Airways CEO Willie Walsh during an investor presentation this month in New York said, "We've now been talking to Iberia for some considerable time, but those discussions received some renewed impetus as the result of change in top management at Iberia during July," he said, referring to Iberia's Fernando Conte stepping down from the CEO post.
Amtrak To Upgrade Acela With Free Wi-Fi
Amtrak plans to launch free wireless Internet on Acela Express trains in the second quarter of next year. The government-owned rail provider said Wi-Fi installation already is underway on Acela Express trains, which serve Boston, New York and Washington, D.C. "This service will initially be offered at no cost to our customers," Amtrak said in its financial plan. Amtrak expects the free service to help increase ridership, adding $4.3 million in incremental revenue through the end of fiscal year 2014, according to Amtrak estimates. In addition to Acela, Amtrak said it is preparing to extend Wi-Fi to other services, "depending on market response," with Northeast Regional trains likely the first.
Marriott To Introduce Green Hotel Prototypes
Marriott International next year will introduce U.S. Green Building Council-certified prototypes for its midprice, select-service and extended stay brands, the company announced this month. In April, Marriott plans to make available a prototype for its midprice Courtyard brand that is certified under the USGBC's Leadership in Energy and Environmental Design standards. The prototype cuts energy and water consumption by 25 percent and saves owners about $100,000 in design planning, Marriott said. The Courtyard Settler's Ridge in Pittsburgh, scheduled to open next summer, will be the first property based on the prototype. Marriott also intends to introduce similar prototypes for its midprice Fairfield Inn, select-service SpringHill Suites and extended stay Residence Inn and TownePlace Suites brands.
PwC Further Lowers U.S. Hotel Expectations
PricewaterhouseCoopers this month continued to move its U.S. lodging industry expectations downward, although the firm said industry performance indicates the initial stages of economic and lodging demand recovery. For 2009, PwC now expects revenue per available room to drop 16.4 percent and average daily rate to drop 8.8 percent compared with 2008 levels. These are slightly larger than the forecasted 16.1 percent and 8.7 percent respective decreases the firm issued in September (BTNonline, Sept. 10). While both of those metrics will continue to move slightly downward in 2010, occupancy would increase slightly to 55.8 percent, according to PwC.
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