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Old 9th Jan 2013, 12:24
  #1084 (permalink)  
BALHR
 
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What you're suggesting is impossible under Irish company law.

You are not getting EI's slots for BA, no matter what you so desperately and singularly desire.
Why is that the case?

Also BA really need the slots to compete with its rivals in Europe, the Middle East and North America and sadly unless LHR is expanded, they will have to look buy some from other operators, however since the BMI takeover there are not many left that hold a large number, only VS, LH and EI, not a good prospect then…

For the record, I am firmly against the FR takeover bids for EI, I would much prefer BA buying a big enough stake in EI to end this whole saga and then buy their LHR slots (the money used could be used to buy back the FR shareholding)

BA days serving the "island" of Ireland are numbered and some may say very numbered. EI are hammering BA at both DUB and BHD and BA will not be in Ireland for very long more. Fact 12 months from now departure boards to LHR may be very different. Another fact is that BA have too many slots at LHR now and this can be seen by the slot sitting on a number or routes.

BALHR
What are you on BA will not get EI slots and I fail to see how it would be a benefit to both carriers if EI sold to BA which won't happen unless the airline was in deep financial trouble which its not and is profitable with lots of cash in the bank.
If EI stubbornly refuses to sell their LHR slots, then they might as well use their own slots that are currently used for LHR-DUB/BHD (which would be scraped) and just codeshare on EI’s LHR/LGW-IRE routes

Also do you have any evidence/figures in relation to both BA and EI loads/profits on LHR-DUB/BHD/SNN/ORK?

However “BA” does not have “too many slots” in fact they barely have enough to compete with its rivals…

As for the potential benefits of EI selling their LHR slots:

1: They can buy back FR’s shareholding in the airlines, thus ending this idiotic saga

2: BA can better compete with its rivals in Europe, the Middle East and North America

3: BA will face “pressure” to maintain LHR-DUB/BHD for longer-term

4: BA/EI will have a closer partnership with each other, meaning EI can still get some benefit out of LHR-DUB/BHD

5: Yield will improve in relation to LHR-DUB/BHD

In other words, very good for both airlines…

AF Cityjet cutting a bit

and NO CHANCE FR will have any say in EI , in any form so dream on and IAG with EI slots......BA have no need of any more slots they are squatting all over the place and its actually causing their operation to suffer, especially on LHRDUB
CityJet is up for sale and I can only see BA CityFlyer buying it…

Anyway, they have very little out of DUB; nearly all their ops are in LCY
Like I said again BA badly need additional slots even after buying BMI, they hold a smaller proportion of slots at LHR/LGW when compared to its rivals in Europe, who holds bigger shares at airports that can handle more flights (AF-KL at CDG/AMS and LH in FRA/MUC/ZRN and they have even more than that…)

With VS in bed (for now…) with DL, EI is one of the few big holds of slots at LHR still standing…

It would also improve yields on LHR-DUB/BHD, which would benefit both airlines (EI will still codeshare on BA’s LHR-DUB/BHD flights)

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
I was talking about a cultural point of view, but it’s not just that, there are many differences from the fact they operate different types of Narrow-Body Aircraft, the fact FR has hubs all over Europe whereas EI is focused on the NL/ROL market and right up to employees T&Cs

All the point you make are also very good ones, I can see why the Irish Government + EI Employees are massively against the deal and I agree with them

So I suggest the 3-point plan to make sure EI remains free from FR control:

1: Sell their LHR slots to BA, which would give EI vast amounts of cash

2: Use that cash to buy back FR’s stake in the airline

3: EI could then re-sell that sake to BA in return (guaranteeing that FR will never gain a majority stake in FR), both airlines form a close partnership with each other (more codeshare partnerships and maybe even some ATI)

Do you think it is a good idea?
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