BA parent unfazed by Gulf airlines' Euro ambitions

British Airways parent IAG said on Monday it was unconcerned about the challenge of Gulf airlines in Europe.

Antonio Vazquez, chairman of the aviation giant which is seeking to build on its formation from a merger of the UK carrier with Spain’s Iberia a year ago, said it is working to identify new takeover targets including long-haul carriers.

Vazquez said IAG wasn’t concerned about losing out in Europe to Middle Eastern carriers such as Etihad Airways, which has taken a 29 percent stake in Oneworld recruit Air Berlin, or Qatar Airways, which last week said it is examining deals in the region after last year buying Cargolux International.

“We aren’t worried about Gulf carriers coming to Europe,” he said in comments published by Bloomberg on Monday.

“What really concerns us is regulation, which hampers any potential corporate activity.”

He added that Qatar Airways seemed a likely candidate to purchase Spanair, the Barcelona-based carrier controlled by the regional government of Catalonia.

Vasquez said IAG was looking at opportunities beyond European airlines such as Deutsche Lufthansa’s BMI, which it has agreed to buy, and Portugal’s state-owned TAP SGPS, in which it has declared an interest.

“We are definitely interested in seeking other acquisitions,” Vazquez said in Madrid. “In Europe, everything is really taken, so it’s difficult to do anything. So we would be keen on looking for long-haul airlines.”

IAG’s chief executive officer, Willie Walsh, said prior to the company’s formation that he’d drawn up a list of 12 possible partners from an initial pool of about 40.

IAG, as International Consolidated Airlines Group SA is known, remains confident it can end strike action over the planned Iberia Express discount unit, the chairman said, adding that the operation will commence flying on March 25.

Iberia’s mainline operation will invest in long-haul flights and build Madrid as a hub while seeking to improve its short- and medium-haul business, he said.