British Airways Seeks Chinese Partnership

British Airways has been reported to be seeking a partnership with a Chinese airline, as it seeks to expand it’s operations in the world’s second largest economy.

British Airways logo

The boss of British Airways, Willie Walsh has confirmed that the London based carrier was conducted negotiations with the Chinese airlines, China Eastern and China Southern, in the hope of securing partnership agreements.

Mr Walsh told the telegraph.co.uk:

“We met informally for a number of years but we’ve been having more formal discussions over the past couple of months.”

“We’ve been for some time in discussions with China Eastern and China Southern with the view to codesharing with British Airways and we’re optimistic that we’ll make progress there.”

At the moment British Airways conducts flights to the Chinese cities of Shanghai, Beijing and Chengdu. In creating a partnership with a Chinese carrier, BA hopes to be able to gain a slice of China’s domestic flight market.

One reason why British Airways is thought to be seeking it’s fortunes in Chinese waters is the fact that European Union and the US rules do not allow a foreign company to gain majority ownership of it’s airlines.

Also, British Airways has been forced to pay out compensation, along with other airlines for flights which have been delayed or cancelled. According to the website, www.bestflightdelaycompensation.com, British Airways long distance flights to locations such as Cape Town, New York And Tel Aviv suffer delays more often then inter-european flights and the mount of people seeking compensation has risen exponentially in recent years.

Stocks Rally Despite Oil Price Slump

Stocks gained traction across Europe today, despite a massive and unexpected rise in rates of the Chinese Yuan, which are held overseas. According to Reuters below:

Stocks rose in Europe on Tuesday, lifted by a recovery in oil prices, but after a slump in crude to a fresh 12-year low and a dramatic surge in offshore Chinese yuan deposit rates had earlier rattled investors.image from reuters

“There is a notion, perhaps misplaced, that oil may find a floor at present levels as it’s already down 17 percent so far this year,” said Brenda Kelly, head analyst at London Capital Group.

“The cheap and easy money is not here to stay but it seems it may be here for some time yet. A combination of bargain hunting and technical buying is also contributing.”

Read more at Reuters.