Aer Lingus rejects / now accepts IAG takeover offerBack to Forum
Hmm… reading CAPA’s SWOT analysis of IAG dated 09 January 2015
and you can see a compelling case for the Aer Lingus deal to divert west-bound UK regional traffic via DUB and onto emerald green or red, white and blue metal based out of DUB. This is given the constraints on LHR and the never-ending uncertainty as to whether any runway expansion will EVER take place in London and the south-east. So, whilst I doubt that there are any fears for Irish jobs, this could be viewed as a direct tilt at AF/KL’s UK regional feeder traffic strategy via AMS.
As IAG has made sundry vague commitments about increasing its Asia-Pacific route network, it rather looks as if it’s running out of LHR capacity-based excuses for not doing so.26 Jan 2015
The answer to your question is…..NO
As I’ve said on other posts, and I’m not meaning to be controversial here, I wouldn’t expect IAG to have any real bother gobbling up EI too. And when I say IAG, let’s call it for what it really is …
“BA” with Iberia and Vueling as lap dogs
IAG might be registered in Madrid but the real decisions are made at Waterside and a such are there to protect the (incumbent government) airline of this country..26 Jan 2015
@ canucklad – 26/01/2015 10:58 GMT
If you check the share register for IAG, whilst you are going to find almost all the major UK institutional investors, I somehow doubt that you will see HM Government or any agency thereof. There is no incumbent government airline in the UK; Mrs Thatcher saw to that. This is not the Persian Gulf.26 Jan 2015
Agreed, maybe not on paper, but actions speak louder than words…….
BA’s dominant position has been maintained ever since they were privatised, and to ensure that, just think about the almost nepotistic relationship between BA’s management team and the establishment.
Starting with Lord King, then Colin, sorry Lord Marshall, and a whole raft of senior executives since, ensure that dominance isn’t.
Granted Mr Walsh hasn’t endeared himself to the current lot, but I’ve no doubt BA still manage to have a healthy (for BA) voice in Whitehall.
And I’m not having a pop at BA, it’s in their best interests, I’m having a pop at all ex-state owned airlines that have benefited from blatant protectionism to the more subtle favouritism, and BA is probably in the latter category.
And my bitterness is based on the demise of such great airlines as CP, BCal, UTA, Wardair, Ansett etc. The way AC was protected was nothing short of a scandal!!26 Jan 2015
But the UK does not have a single “flag carrying” airline.
We’ve got Virgin Atlantic, then the UK positively encouraged the expansion of O’BlarneyAir as well as EZY who have prospered and thrived across Europe off the back of their initial UK bases… As for regional carriers, there is still BMI Regional and also FlyBe. Whilst I share your sense of loss at the likes of BCal and recognise that LHR is fortress London Airways, we’ve no way got a completely monopolistic market – particularly with the advent of the LoCos and the state-owned/supported Gulfies.26 Jan 2015
Again I can’t disagree, factually BA is not our only international carrier and we have a completive and thriving regional market because of the LoCo’s …..
But, I have to ask why BA is so special that they merited a move to a brand spanking new terminal, not once, but twice and at one of the world’s busiest and most prestigious international airports.
And how much did BA pay towards their brand spanking new homes ?
Sort of like AF at CDG, AC at YYZ and dare I say it EK at DXB……26 Jan 2015
This is very bad news for London based travellers BA will almost certain ally stop aer lingus offering those crazy j class fares to the us via dublin, which is the best way to fly business has you clear US passport control tin Dublin for about a third of what BA charge.
Please block this deal.26 Jan 2015
@ canucklad – 26/01/2015 15:18 GMT
I have rather got the impression that BA considers that they have (a) paid too much by way of landing and other charges and (b) not got nearly enough control over the design and operation of their principal operational centre… It’s a moot point indeed how this compares and contrasts with the experience of KL at AMS, AF at CDG, LH at FRA & MUC etc.27 Jan 2015
You’ll note I chose my airlines carefully, not mentioning KL or LH.
On the other hand AF benefited from a huge investment (waste of money) at CDG. Terminals were built specifically to “Enhance” the AF experience. Non-French airlines were left to 1970’s T1,
Same thing happened at Pearson; AC had a brand new spanking terminal built for them. The rest were left to slum in the old terminal.
Oh, and funny, and ironically enough, the DAA has also built a shiny new terminal and who’s benefitted……. Aer Lingus!!27 Jan 2015
DAA’s T2 also houses the US Customs Pre-Clearance facility, used by several Transatlantic airlines.
However, Aer Lingus derive a lot business from transatlantic passengers originating in UK and Europe. No doubt IAG would like to get their hands on this.
No doubt the Aer Lingus brand carries some value too. The advertising “great care, great fare” leans heavily on the staff, who are very customer focused:
I also remember an equally group of customer focused staff….they wore the uniform of BMI were excellent ambassadors for their employer……..until they were taken over by LH.
BMI is now history……..I hope that if the IAG takeover is successful, that Aer Lingus does not suffer the same fate.
Another perspective:27 Jan 2015
It’s great to see you comment on this topic. I’d love to know what your further thoughts are from an Irish perspective.
As someone who is happy customer of Aer Lingus, do you see this more of a threat or an opportunity for the company to strengthen? So far we’ve been quite BA/LHR centric.27 Jan 2015
“IAG pledges to maintain Aer Lingus identity as takeover wins backing”27 Jan 2015
And, interestingly, meedjah comment in Ireland (RTE to be precise) to the effect that any IAG takeover would see increased investment in equipment and routes…
Silence so far from O’Blarney and his board and from the Irish Government.27 Jan 2015
Pledges are pointless. If it suits IAG to maintain the Aer Lingus identity then it will, if it doesn’t it will find some way around them.
Transfer pricing, allocations regardless of head office diktats etc can all be manipulated to paint whatever picture Walsh and co wants to suit their agenda and justify subsequent changes to terms.
Sad day for all bar the IAG shareholders.27 Jan 2015