What next for IAG?Back to Forum
Anonymous26 Aug 2015
Following the acquisition of Aer Lingus, what is next for IAG?
Perhaps the purchase of Flybe (BA has or had a 15% stake when it sold BA Regional to the carrier a few years back) with full OneWorld membership, in order to build regional traffic into Dublin (complementing the Irish carrier’s network into the UK) and potentially Gatwick (no slots at Heathrow for that expansion)……… any thoughts?
Internationally, I am not sure where the opportunities exist, Cathay Pacific perhaps (not Malaysian, as it is now fully stated owned, through the Sovereign Wealth Fund) ……. again thoughts?26 Aug 2015
With a change in government in Sri Lanka, the national airline could be privatised. With SriLankan already a member of the oneworld alliance, it could be a good acquisition for IAG as the route overlap is minimal.26 Aug 2015
They should look at Rwandair – which is looking for investors, and will help fit a gaping hole in the IAG & Oneworld networks – Africa.
It is a small but fast growing and well run airline, very well locatad for routes into central, eastern and southern Africa, and for coming from Asia, for example KL, HK or Doha, an ideal stop on route to West Africa, which is also growing in their network..
Rwanda is a far more stable country than it used to be, and has been growing steadily for many years.26 Aug 2015
I think I recall BA sniffing around SAS in the past. It needs some decent management in place that it has not had since the eighties. Norwegian have eaten in to the Scandinavian domestic market like a knife through butter with SAS seemingly standing back and watching. At least BA put up a fight against the Loco’s. Scandinavia is and will likely remain an affluent region with plenty of opportunity for a good airline to make hay.26 Aug 2015
I don’t run an airline … for me I would love them to start a new hub in Kazakhstan or another of the former soviet republic flyover states; use as a hub for Asia or Oceania bound flights. Fly A380s by the truck load and then push them onto something smaller to seed flights into china, assign, oceania etc. Less flight miles than ME3.26 Aug 2015
MrMichael recalls the days when Jan Carlzon was in charge at SAS and it was arguably the most successful business airline in Europe.
It was SAS who attempted to buy B.Cal but was pipped to the post by BA.
Not so long ago it was LH who was looking at buying into SAS but nothing ever happened.26 Aug 2015
I’d prefer if IAG tried and created a smoother and more consistent customer experience across its current empire rather than looking for the next takeover candidate.26 Aug 2015
Buying Flybe would probably be the next thing if they wanted to another airline. Maybe they should stop think about UK and Europe, and think about expand in Asia.26 Aug 2015
I’d be very surprised if BA was interested in Flybe. No Gatwick slots, no Heathrow slots and a series of random routes between second tier destinations. I can’t see much there that Aer Lingus couldn’t do.
In fact they must be reaching the point where competition authorities would take an interest in anything UK/Western Europe focused.
Rwandair is an interesting one, but relatively small and half the world away.
Top of the head but could they buy Comair?26 Aug 2015
I might be wrong but I suspect BA would only be interested if it was a feeder for long haul routes.
I’m not sure that point to point traffic adds much value which is why Flybe rarely seems to make a profit. Too much competition from the other LoCos which have economies of scale.26 Aug 2015
I don’t see the point of buying FlyBE. Their network doesn’t really fit into the existing network.
For me it should be Finnair. That would complete the geographical spread of Europe. At the moment, they have EI serving North America, IB serving LATAM and then Finnair serving the Far East.
I’ve pointed out before that IAG have a cost advantage over the LH/AF group as with 3 airlines at the 3 corners of Europe, all feeder traffic goes in the same direction as the onward destination. Whereas for LH/AF half of their feeder is going in the wrong direction which makes the whole journey time longer. From a passenger point of view that might not matter but from the airline point of view, time = cost. I have seen this point made in an IAG presentation before so it is something they have in mind.
SAS might be an alternative but Finnair are already in the OneWorld alliance.26 Aug 2015