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#574072

PegasusAir
Participant

Interesting that some of the suggestions are, surely IAG have more than enough to do without buying any more carriers at this time. They still havn’t started paying a dividend yet and I suspect that IB is still not where it needs to be. Has the IB acquisition yet been value enhancing given the purchase price and subsequent losses? It is still nowhere near being robustly profitable and don’t forget that there is another carrier – Iberia Express tucked in here with separate management and fleet. Of course the IB acquisition eventually resulted in the full ownership of Vueling which appears to have been a good buy but there is still much to do here as well. Vueling I believe has only one base outside Spain, in Rome, and has nowhere near the market penetration that FR or EZY have across Europe. Add to that the juggling of new aircraft deliveries replacing the gas-guzzlers (747’s and A340’s of BA and IB) versus keeping them flying longer due to the low fuel price and using the new aircraft for increased frequencies or new routes and with the integration of EI coming up, I think all together there is much to keep IAG busy without any more acquisitions. Of course, if say Finnair came on the market they would have to seriously look at it – One World and strategic but I doubt they want to be pro-active. I think WW will want to increase shareholder value with the existing group first – well I hope he does!.