European and US airlines are lining up to take a stake in Iberia as only two carriers remain in the fray for part of the Spanish flag carrier's former holding in Aerolineas Argentinas.
A senior source at Iberia has disclosed that Air France, American Airlines, British Airways, Continental Airlines and KLM are all bidding for up to 10 per cent of the Spanish flag carrier. American and Continental, meanwhile, are still bidding for a stake in Aerolineas, in which Iberia retains a 10 per cent stake.
The process around the bidding for the Iberia stake is unclear, but the Spanish carrier appears to favour the stake being split between a European and a US carrier. The source at Iberia says the intention is that any equity partners will also be involved in the alliance with Aerolineas.
Other than publicly acknowledging its interest in the Aerolineas deal, American is maintaining silence. Continental has adopted a much higher profile, with chairman Gordon Bethune alleging that if American's bid is successful, its rival would control 70 per cent of the US-Argentina market.
Bethune says Continental is seeking 'only a small equity position' in Aerolineas, sufficient to provide access into Argentina. 'The investment proposal that Continental is offering depends on maintaining and expanding the key international routes of Aerolineas, ensuring that existing Argentine staff and crews would support these flights,' says Bethune.
Aerolineas has confirmed that the 63 per cent of the carrier held by Andes Holding is up for sale. Once an airline partner is found, the remainder is expected to be listed.
Source: Airline Business
