[AnthonyDunn]

BigDog. – 11/07/2014 22:17 GMT

The smart move would have been to avoid IB, let it fail and build a long haul version of Vueling. based in the thriving northern Spain region – saving billions and allowing an independent BA to thrive unencumbered by a corpse.

Well, sadly, neither BA management nor its so-called investment bankers had your M&A experience or understanding of market timing so they did the deal when they did for the price they paid. IAG managed to get the labour court of arbitration (or whatever it is called in Spanish) to agree to a certain level of redundancies. That figure was lower than what IAG/IB wanted as the necessary figure to achieve the level of cost cutting required and this is, presumably, why they are now coming back for an entirely predictable second bite at that particular cherry.

Interestingly, immediately below the Torygraph article on IAG/IB (tendentiously referring to BA in its strapline), there was the following item about a revenue and profit warning from AF/KL:

http://www.telegraph.co.uk/finance/markets/marketreport/10955096/Market-report-Airlines-hit-by-Air-France-warning.html

I also seem to recall sundry recent rumblings from LH management in Frankfurt about their cost structure and the unfair competition provided by the Gulfies. At least IAG/IB/BA are not sitting on their hands in the face of both intensified competition and cost pressures. However, what I do fear is that in an accountant dominated entity like IAG, they know easily enough how to strip out costs, they do not know how to add value and invest in customer service standards that attract passengers.

[BigDog.]

@AnthonyDunn – 12/07/2014 02:13 GMT
However, what I do fear is that in an accountant dominated entity like IAG, they know easily enough how to strip out costs, they do not know how to add value and invest in customer service standards that attract passengers.
+1

Not wishing to “out” Hippocampus” Anthony, but given the nature of his posts, it is reasonable to assume Hippo is an insider, probably a fairly senior waterside (as opposed to airside) one.

So some may view the newly announced cuts as being at odds with an indsiders? view that .. ” Iberia is delivering on its promise with a rapacious expansion, backed by the unparalleled expertise of IAG”… However when the usual hyperbole, dogma and inept leadership is factored in, I guess it is not.

[WillieWelsh]

BigDog, I suspect that Hippo might have met his end along with the other incarnations of the late VintageKrug.

Isn’t it so much more peaceful and adult around here these days!

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