The Hawks Are Ready To Strike

BA-KLM could be just the first cross-border deal

After a year of flying low--with operations deep in the red and a badly damaged stock price--British Airways PLC is struggling back. Over the past few months, it has dumped Chief Executive Bob Ayling and replaced him with Rod Eddington, a well-regarded Australian airline executive. Now, with 50-year-old Eddington at the controls, BA is embarking on a gambit that could break down the biggest barriers in the airline industry. On June 7, BA announced that it is in talks with Royal Dutch Airlines (KLM) that could lead to a takeover of the carrier.

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