Deutsche cuts BA rating after doubts over American tie-up
AILING airline British Airways (BA)was dealt a further blow yesterday, after Deutsche Bank cut its rating for the airline from “sell” to “hold” ahead of its second-quarter results.
“We believe that the main positive catalysts for the stock – the merger with Iberia and anti-trust immunity with American – are at risk,” said Deutsche’s Geoff Van Klaveran .
The news came as the airline said it was ready to fight concerns over antitrust immunity on its proposed tie-up with American Airlines (AA) and Spanish carrier Iberia, after EU regulators raised concerns over the talks.
BA said the proposed three-way tie up would not dominate transatlantic markets, despite the European Commission stating it would do “competitive harm” on seven routes between Europe and the US.
The EChas told the three airlines, who have been in talks over a transatlantic tie-up for over a year, that they may have to give up take-off and landing slots if they want to go ahead with the merger.
But BA dismissed the comments. “We don’t believe that this is necessary given the number of airlines flying between the EU and US,” it said.