There is no reason why BA North Atlantic passengers to/from the UK regions or mainland Europe need to be funnelled through LHR. With EI firmly in the IAG camp these passengers could over time be hubbed through DUB on EI aircraft carrying BA's code. Over time this would free up seats on BA's LHR network for growth - be it higher yielding point to point passengers, or new connecting passengers currently using other routes.
Pax to/from airports with no links to LHR could connect over DUB, for the few US/Canada airports served by EI.
EI links several (18 is it?) UK airports to DUB.
If as a result IAG can consolidate EI/BA frequencies slightly on LHR-DUB and free up a few slots, that would be the icing on the cake for them.
Especially if a slot surrender is not needed, or fails to entice another user onto LHR-BHD and LHR-DUB.
Again, put a number on adding more connections over DUB. Aer Lingus and Dublin Airport are stretching existing facilities today, they have less tha ten aeroplanes on the pond and a handful of US destinations. It is in now way, strategic growth. There is *every* reason to keep squeezing more and more via LHR as that's where the clear majority of IAG connections are, not to mention American. The hard product on an AA B763 on DUB-US is inferior to anything on a B777 out of LHR.
Agree that it is limited, but only 7 UK airports are linked to LHR. This could be away of grabbing some of the action from KL at UK airports that aren’t linked to LHR with pax currently connecting over AMS. KL also links several UK airports to AMS.
FDF--- wouldn't Star Alliance want any slots that had to be surrendered? Surely all of the alliances currently at LHR would want them. It's probably not enough to attract an outsider such as U2 though.
Definitely! but
AFAIK, they would have to be used on LHR-DUB, LHR-BHD. Would any of LH, SN, OS, LX, etc. be up for it? Only mentioned KL as it has longstanding links with, and knowledge of, the UK because of the UK-Netherlands open skies agreement going back to the 1980s.
U2
is a rank outsider, but who knows. Would only really expect it at LHR in the event of expansion there, but that‘s another very long-running story.
I'd be surprised if IAG would throw EU1bn around just for a short term punt. They must see some long term strategic value as well. Walsh is also astute enough to know that he wouldn't get away with asset stripping EI for it's LHR slots and wiping it off the map like he did with BMI. EI has a stronger brand and market loyalty in Ireland than BA will ever have, and is currently profitable. As such it would most likely remain as a complementary stand alone operation and brand within the IAG group.
Exactly, and BA doesn’t need slots at present, it needs longhaul aircraft.
As mentioned previously, "BA-Ireland" doesn’t cut it any more than "BA-Espana" or "Iberia-UK" would.
Yes of course IAG will continue to squeeze as much traffic through LHR as they can, that's their model. But having a secondary hub available in DUB (and with the benefit of US pre-clearance to boot) gives them options and a safety valve in the longer term especially if LHR R3 gets kicked into the long grass again.
Yes, regretably that is more than likely. Even if not, there’ll be delays, they’re talking 10 years!
There is also the strategic reason, that no one else should get their hands on EI’s LHR slots and asset-strip them and compromise "fortress Heathrow". That has to be important in IAG thinking, doesn’t it?
Given the cash EI have in the bank, the LHR slots, the assets (they normally own roughly 50% of their fleet right?) and the fact they are a profitable business, I think this was deliberate undervaluation by IAG, they put in a bid they knew would get rejected to put a shot across someone's bow. Either giving the shareholders a heads up that they're interested, or warning a rival that IAG may start a bidding war and make things very expensive.
Classic negotiating ploy!
I don't think the unmentionable will be looking at getting 49% of EI just yet, they are bound to be up to their necks in s*** with AZ now
Indeed, and the LH group aren’t exactly overflowing with cash either.
Why would BHD go to BA? Aer Lingus could be used as a feeder into the BA network at LHR from BHD. We all know Aer Lingus' cost base is much lower than BA under the current model
No particular reason, perhaps because it’s a UK domestic route?
Wonderful to be an "armchair" airline CEO isn't it!