What next for IAG?
Back to Forum- This topic has 78 replies, 32 voices, and was last updated 2 Sep 2015
at 19:26 by transtraxman.
-
- Author
- Posts
- Skip to last reply Create Topic
-
MrMichaelParticipantAlex, your dead right. Jan Carlzon was an awesome boss of SAS and it really was a pleasure to fly and do business with him/them in the eighties. He knew what customer service really meant, and his staff knew what it meant to not deliver it.
I am in the Flybe making no sense for BA camp. For the reasons given, it just would not fit barring a couple of routes.
As Bath_VIP says, Finnair would make sense, but I get the impression Finnair is doing pretty well in its niche market and thus room for growth of that would not be huge. IAG will want something currently under-performing, to put in place a business plan to turn it around. For me SAS fits the bill (as perhaps would Alitalia if Etihad had not come along and puts its nose in). With SAS you get an underperformer in a growing market, an affluent area and it would compliment IAG in having Aer Lingus to the West, Iberia to the South, SAS to the East and itself……jewel in the crown…BA in the middle.
26 Aug 2015
at 15:42
Carajillo2SugarParticipantWe have to think that IAG will want to create a decent hub at Dublin (I have a 2:1 from the University Of Life in ‘Stating The Bleedin’ Obvious’, so bear with me, please, caller.). In which case, they may already be taking a look at one particular airline that currently offers at least 8 regional connections from the UK to Dublin:
ABZ/GLA/EDI/NCL/IOM/CWL/BRS/LBA
This is an airline whose services already carry an Aer Lingus code-share flight number.
In addition, this company owns the airports at Southend and Carlisle, which may (or may not…) present additional opportunities to fill those long-haul flights we all expect to see operating from Dublin.
Step forward…… STOBART AIR
26 Aug 2015
at 16:07
theworldtravellerParticipantMaybe they can buy Easyjet and merge all the BA European operations into the low cost model
26 Aug 2015
at 16:26
AnthonyDunnParticipantUnless either Stobart or Aer Lingus are unhappy with the current arrangement, why upset the apple cart?
IAG’s strategy has been largely defensive: closing down/selling off its ex-regional operation, buying British Caledonian, Dan-Air and then BMI. The trans-Atlantic partnership with AA and AY is along the same lines. Was there not already a minority stake in Vueling inherited with the BA takeover, err, merger with IB? Taking over VY cemented the potential ability to close-down IB’s loss-making short-haul services if the unions remained recalcitrant. Which is probably why the latter soon saw the light.
The acquisition of EI is a reflection of the UK’s chronic inability to make a decision about runway expansion in London and the south-east. It is also a direct and very obvious tilt at much of KL’s westward-heading ex-UK regional business.
As has been pretty obvious for some time, the bean-counters running IAG are massively risk averse. So I would argue that it is unlikely that they would take a risk with an operation they know nothing about. I would have thought that the kind of deal IAG would prefer to do would be to takeover one of its franchise businesses where they know the numbers – such as Comair in SA. This would also enable them to grow southern African feeder traffic and expand across that part of Africa.
26 Aug 2015
at 18:26
AMcWhirterParticipanttheworldtraveller –
“can buy Easyjet and merge all the BA European operations into the low cost model.”
If BA had not sold off Go then it would already have its own LCC.
26 Aug 2015
at 18:32
AnthonyDunnParticipant@ AMcWhirter – 26/08/2015 19:32 BST
And to EZY…! When all around them were serving up undrinkable Nescafe brown liquid, Go had mastered the onboard art of coffee from a cafetiere. Simple things but that was one USP that brought me back time and time again.
BTW, there is not a snowball’s chance in hell of an IAG bid for EZY getting past the UK/EU competition authorities.
26 Aug 2015
at 19:22
FDOS_UKParticipant“I think the reality on Easyjet is IAG just couldn’t afford it. £7bn market cap would be too big for them to digest even if there was a strategic fit.”
Agreed, another interesting fact, passengers carried in July 2015
IAG – 47.47m
easyJet – 40.14m
In other words, easyJet carried about 85% of the passengers of the entire IAG operation (three airlines) – might be a big ask for them to take control and integrate that – maybe a tad of their management capability league?
I mean, if they can’t even sell tickets at the right prices (ex Norway and Germany, recently), can they manage such a large airline?
27 Aug 2015
at 02:17
FlightlevelParticipantFlybe is a different type of operation, until they can use Airbuses its not feasable, Easyjet is no way for financial & regulatory reasons. Finnair is possible & although SAS needs IAG thinking they wiil be even more nationalistic & protective than the Spanish & Irish & three governments to deal with & Star alliance competition! Certainly a non EU airline would be progress & Comair is a good start in that direction, direct flights to St.Helena anyone?
27 Aug 2015
at 05:53
AisleSeatTravellerParticipantAny takers for a Cathay Pacific takeover, strong into China (a good market even when slowing down)
Or Hong Kong Air?
Perhaps Bangkok Airways for an entry into Thai market to feed traffic to long haul operation (but limited value)
Other Asian carriers would be difficult given the level of state participation
As previously mentioned Sri Lankan would be good for entry to India and east to SEA
Africa is a weak spot for oneworld
27 Aug 2015
at 06:31
lesmclarenParticipantMartin J- ABSOLUTLY with you on that one!!
As AMcWhirter says happened with SAS I can see IAG going down the same road because they lack experienced customer orientated senior management and have not replaced the ones that have departed.
However it would be interesting for me if IAG did buy SAS, I have lifetime Gold with SAS but am about to lose my BA Gold card because of the cancellation middle of my year of “grandfather” rights. Maybe this would be a “backdoor” to getting my BA lifetime gold!! [IPPMF].27 Aug 2015
at 09:25
lesmclarenParticipantMr. Michael – I think you will find SAS is in the NORTH!!!
27 Aug 2015
at 09:29 -
AuthorPosts