Frankly, I just see why FR is even interested in EI, since they have very
little in common with each other, only that they both have large ops in DUB
(which is the only reason)
BALHR maybe from a culture point of view very little in common, I assume that is what you mean? EI and FR networks overlap massively. FR is on a large proportion of EI routes all across Ireland to UK and Europe and where is no competiton between airport pairs, FR has an alternative serivce that competes with EI for passengers e.g. CRL/BRU, BVA/CDG, BGY/LIN-MXP, CIO/FCO, LHR/LGW- STN- LTN etc..... list goes on.
EI have a great market segment ex ROI for themselves, are competitive on price and are winning most markets, UK destinations are a prime example EI and EIR collective has seen FR back off in many areas and watch this space. BRS FR retreating to x2 daily, ABZ FR withdrawl, EI are stepping up BHX to offer maximum connectivity via DUB and in the process offer the customer highest convenience and frequency.
FR are not happy with their returns on Ireland UK routes and in many cases the 738 is simply not cost effective to make they work, afterall FR is reliant on point to point. EI Is not solely reliant on this.
FR want to purchase Aer Lingus for the following reasons and lets be very clear about it:
1. Gain Control of Irish Aviation and give 2 fingers to Dublin Airport authority, this must be MOLs greatest wish,
2. Bring EI and FR together so that he can disable a very formiddable competitor, EI have developed a good approach to making the business work and it is a great example of a small company being very capable to competing and winning the battle against a dominant giant company. Routes like Stockholm and Verona have worked splendidly for EI and FR have already withdrawn Stockholm, thanks to EIs ability to feed into T/A they can develop routes without fear of FR.
3. Gain a foothold onto T/A business using a carrier who has made a profitable business across the Atlantic, not many have.
Make no mistake MOL may say that he would run EI as the current brand that it is, but he will overturn everything for competitive advantage including any promises that he may make in the process of purchasing the company, and any legal issues that arise of court cases as a result, he will see the cost as an investment into highlighting FRs low fares blah blah blah. He will never accept the Unions and that will be the achilles heel for the EI brand if the union attempted to challenge him should he gain control. he simply would close it down and bring FR in, cut back, have the market sewn up, and then lever higher prices and dictate to Dublin Airport what goes on...
EI-BUD