The International Air Transport Association, a group representing the global airline workforce, is speaking out against the industry’s inability to form formal mergers, instead forced to settle for joint ventures.
Two top airline executives spoke at an IATA event this week denouncing the restrictions on airline mergers, a view reports say is shared by the majority of the industry. IAG head Willie Walsh spoke at the panel discussion arguing that “the joint venture is a poor substitute” to a merger, but it is the market’s only available option. JetBlue head David Barger also spoke on the subject, slamming international ownership restrictions for the airline market as “so out of date.”
”Allow the open market to settle the winners around the world,” Barger said.
Walsh is reportedly looking to bring the matter to the attention of the Organization for Economic Cooperation and Development, suggesting that while competitive issues regarding joint ventures are an important topic, it may be more beneficial to discuss caps on foreign ownership.
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