Aer Lingus - 4

[Livinginthepast]

Quote "Weak EI surely in FR's interest, notwithstanding its large investment? Is this the long term goal; gradually, pythonlike, asphyxiating it to the point where only viable outcome is takeover by FR and MO'L effectively able to dictate terms?"

That is one hell of a nonwithstanding of approximately 500,000,000 euros. A takeover of Aer Lingus by Ryanair has been refused by the EU and unless there is a change in the ruling it will remain impossible and Ryanair may be forced to sell their stake.

Aer Lingus may be correct in positioning themseleves where they are in the market. They are not shoddy as some of the customers suggest but given the level of customer service experienced in Shannon it is easy to see where some may have got that opinion. The future is 'loco'. It may be loco with a degree of comfort and service eg. Tran Air, Jetblue, Aer Lingus rather than Ryanair as this model will be applicable to short haul and long haul.

The comments on subsidized child places for staff members is hopefully historic. I remember one rotation from Shannon to New York where a child of cabin crew was in one of the crew seats for take off and landing. I believe those perks have been severely curtailed and are only available on a standby basis now as I believe they have been for many, many years now. Of course they would be accommodated in Premier class on a sit there and say nothing basis. The question from management is why there are vacant seats in Business class and why they weren't sold. If a child of an employee were put in a vacant seat next to a paying passenger that would have an impact on the image of the company and that employee, if stupid enough to do that, would and should face severe disciplinary action.

Aer Lingus is a profitable airline and progressive. It is operating on a commerical basis now and there is an emphasis on both lowering the cost base and generating revenues. They are remarketing the Premier product and this will be rolled out at least as the A330 fleet is renewed. They have renewed the short haul fleet and prehaps what this needs an increase in fleet size to develop new markets. One of the reasons for abandoning Shannon is redeployment of aircraft.

Dubai is a difficult market. It represents a strategic interest along the lines of Shannon Heathrow. It should be pulled and the aircraft reployed on US or another Asian route if needs be. Same arguments apply as there are arguments for and against retention of the Shannon Heathrow route.

SAA should of course learned their lessons on the Shannon Heathrow route, and develop the business proactively. To offer to cut after the decision and the analysis has been made to cut the route and the resources deployed elsewhere is, as every child knows, to blot the stable door after the horse has bolted. There has been nothing more than an awaking to commerical realities. The loss of the Shannon stopover and the failure of SAA to protect it's routes are not going to spell disaster for Ireland. The loss to the Shannon area is overstated. If an additional A330 is based in Shannon, and a lot more could be, if SAA get proactive on this, in the medium term Aer Lingus will be looking for more people to work there. Why not be imaginative. Say, position Shannon as a European centre for aircraft maintenance and develop the substantial facilities that are already in place. Develop Shannon as a substantial freight hub along the lines of TNT in Liege. In a few short years, the link under the Shannon will be complete and the good people of Shannon will be able to bypass Limerick and more effectively use the Heathrow link they are so beloved of from Cork.

The future of Shannon lies with Shannon. It has not marketed itself well in recent weeks.