Reply To: What next for IAG?

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MrMichael
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@ Bath_VIP – 02/09/2015 10:06 BST. I think Finnair might well fit nicely in to IAG….however I understood Finnair is successful in its almost niche like market. I still have my money on SAS….a takeover makes more economic sense if you get it cheap due to underperformance and can then turn it around. SAS fits the bill, especially given the strength of the Nordic economy’s. The problem with SAS is the Governments of Denmark, Norway and Sweden want non stop flights from their hubs to long haul destinations. With the exception of NY it just won’t work. It’s feeder services from the outlying areas are now dominated by Norwegian, and those Norwegian boys are now muscling in on the long haul too.

An IAG takeover will give more feeder traffic to the Scandic capitals…making their Long Hauls viable. Just like Dublin in the West with the take over of Aer Lingus, they can use Copenhagen in the East to do the same….increasing the destinations from Copenhagen to the East will again ease the problem of LHR capacity. If you look at the prices SAS charge, it is a ruddy miracle anyone gets on. It should not fall foul of competition authority’s barring the LHR-Copenhagen/Oslo/Stockholm sectors….but that is just a matter of freeing up more slots and using higher capacity aircraft. As for Star Alliance…..well what a coup for Oneworld…leaves a huge gap in Star Alliance Northern Europe.

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