I know for a fact BA have plenty of slots at LHR , given they are launching new routes recently both Domestic, Europe and Longhaul
LHR however has no slots for new entrants they mut rent from incumbents, even BA has rented out slots currently.
So plenty of scope to expand for BA , not much scope for anyone else however, which means BA are going todo just fine for the foreseable , main issue MAY be suitable aircraft i.e plenty of aircraft for domestic shorthaul and mid haul but short on suitable longhaul planes to complete with those Middle East folks
Not sure why anyone thinks BA have a slot shortage but it keeps being mentioned on this forum despite the evidence to the contrary.
VS/DL deal , mystifies me but isnt it a sign that two airlines are aware of the huge potential BA have in the next few years to expand at LHR , especially to USA where they really are dominant. AA are ceeding scheules and capacity to BA so this will ensure BA continue to grow to USA.
Only issue I see for BA at LHR is the need for A380 B787 aircraft to repalce the less fuel effeicent fleet currently used, and I know BA will get that sorted.
Can we move on from BA perceived slot shortage at LHR its not true.
Really, while they have a lot more slots in LHR that they have had in the past (thanks to their takeover of BMI), it’s still nowhere near enough to have enough short-haul (connections), medium-haul and long-haul routes to compete with its rivals in Europe, I mean look at it this way, BA* currently has 52.5% of the slots at LHR (Along with 20% at LGW), on the other hand Lufthansa has 70% of the slots at FRA and even more so in MUC and Air France-KLM has 60% of the slots at CDG and AMS, all of which can (and do) handle more flights than LHR, that gives them a vast advantage (and I haven’t even got to the other hubs, such as LH’s hubs at ZRH for example)
That is why BA European rivals have more extensive networks to South America (which is taking market share from BA’s sister airline IB), China and Africa than BA, while BA has the advantage in terms of flights to India and America, LH (with help from UA) is now not that far behind in both cases (most of all the latter)
To say that BA has plenty of scope to expand is not true, since LHR cannot expand, so they have to buy as many slot as legally allowed (and really pushing it…) in LHR, LGW (at least until LHR is expanded) and LCY for the time being, the might just be enough for now…
For the long term, BA needs to put a lot of pressure on the government allowing expansion at LHR (and I mean a lot), with the airports of Europe facing NIMBY preassure
The lack of long-haul aircraft can be fixed by delaying retirements and refurbishing them and ordering more planes than they currently have (it’s clear they need more A380s + 787s than they currently have)
The VS/DL deal makes absolutely no sense at all, all they are getting for paying for 49% of VS is a bigger share is a bigger share of the LON-NYC and they paid a massive price for that, not only that but they have “tied” themselves with a airline who’s business plan is based on SRB’s passion, ego and stubbornness
I would suggest to DL that rather than take a massive risk which could help them end up in a financial crisis (which meant they were almost bought by US, luckily they turned themselves around and look where they are now…) and look closer to home…
In fact look toward an airline based only a few hundred miles west of ATL and are neighbours at JFK, it’s a airline that has a large share of the LON-NYC market, has a strong position in Latin America and a large hub in the southwest, however they are in BK due to the fact they have labour issues (something DL does not have, even after merging with NW, who have had a poor record on labour reations) and like when DL was in their position, US is circling round them (remember, a merger with US will bring very little to that airline, so why don’t Delta buy this airline (which also brings the added benefit of allowing DL to better compete with UA in NYC…
As for the name of this airline, well it called American Airlines…
*This figure includes IB, whose flights are effectible operated by BA (to Madrid + Barcelona), but not AA however (should it also be included?)
BALHR, not a valid argument, demand still exists in Spain and IB needs a strategy that focuses on its uniqueness points i.e connectivity to South America, making itself a carrier of choice to the region and also it needs to slim down its cost base. Activity around Vueling and Iberia express is an attempt to shift to cost base on some short haul markets, especially those that are hotly contested.
Back to the point, this is not a valid arguement as I have said Spain has huge inbound tourism and demand is still very strong. Moreover, drawing a parallel. Ireland as an Island is so much smaller geographically and in population terms, and its main 2 carriers are quite profitable. Lets focus on Aer Lingus for comparison as FR it has so many other markets to rely on.
EI is profitable, in the depts of austerity in Ireland, has still returned profit, all the while contending with the leanest competitor in the industry.
These times of crisis are a time to reform, slim down the cost base and become more competitive.
I am not saying that IB is condemned to die and there is not enough demand in Spain (there is, but much less that before), but IB faces massive challenges not just from Spain, but from outside of Europe, even their network to Latin America is being attacked even by fellow OW member LATAM
The problems of Iberia go well beyond the airline, it’s a reflection of Spain as a whole a country with large debts, poor economic growth, banks that badly need bailouts, high (most of all youth) unemployment, harsh austerity, poltical disputes, nationalism etc
Aer Lingus had the luxury of restructuring their business when time where good, so when time went really, really bad, they were able to weather the storm quite well, IB does not have that, while they have been relatively conservative in expansion, they have a high cost base, ordered too many A340s, fails to attract enough of the Premium Market and most of all failed to expand east…
I just feel that both BA and IB face massive (but very different) challenges and rather than IAG face a near-impossible task to fix both of them them, both airlines themselves to fix them while maintaining close ties with each other…