Do you really think BA are willing to give up on virtually all non-London based UK TA pax Frank? Because EI are targetting these pax big time ATM.
Did not actually state that.
If EI are targeting BA, then it makes sense for IAG to own both.
In a way, EI is targeting KL more than BA, because BA (or any feeder carrier) does not have the reach throughout the UK, thanks to the lack of capacity at LHR.
EI is not taking away from BA because BA is not present in these areas (i.e. UK airports not linked to LHR). By buying EI, IAG
as a whole gets access to this traffic.
I think from every angle EI are a great buy for IAG, either to protect the LHR slots, absorb them, or use DUB as an outlet valve for the UK regions as has been suggested. Would it be better for EI than continued independence though is questionable, since a decent chunk of their TA pax, which is their moneymaker atm, are coming at BA's expense. David and Goliath of course, but the little bit of business David is taking from the giant is crucial.
Agreed, on many levels it would be extremely foolish and a huge strategic bungle for IAG
not to Buy EI if the opportunity arises.
why on earth would IAG take over EI only to curb its transatlantic operation. Without it many UK and Euto routes would not survive. Willie Walsh is only too aware of this. Looking at this another way, giving more connectivity via Dublin can allow BA to build new routes at a crowded Heathrow and let's face it, it's going to be a while until new slots come up at LHR...
Exactly, it's sort of hedging bets. The EI trans-Atlantic operation complements the existing BA/IB/AA joint venture offering.
Iberia would not affected much due to BA and IB having different markets. How many UK airports did IB serve before the sale? Never many. How many does EI serve? A hell of a lot more than IB anyway. Why BA would want to jeprodise their UK and Domestic traffic is beyond me.
BA is not jeopardising it's UK and domestic traffic. BA would not be buying EI, IAG would be, and by buying it, would ensure that if BA loses traffic to EI on trans-Atlantic, the parent group IAG (which has the shareholders) is not. This concept should not be difficult to understand.
Why could BA and EI not co-exist in much the same as LH, SN, OS, LX, etc., do in the LH group?
If BA wanted a second airport for its TA traffic, it would use Gatwick or Glasgow/Edinburgh, not Dublin. Dublin is a very worrying competition for BA and they are growing fast.
It's been done before, it no longer worked, and it was ended.
BA did trans-Atlantic from LGW, MAN, and, back in the day, GLA/PIK.
If it is the case that DUB is indeed very worrying competition for BA and growing fast, then why not get a piece of the action?
From IAG's point of view, doesn't this make perfect sense? From EI's point of view does it not also make sense?
For EI, it would be "the devil you know". Another buyer may want to "do a BD" on EI and canabalise it for LHR slots. IAG would not, as BA has enough LHR slots now.
My opinion on what BA may do is they would mess with the schedule of the T/A flights or the UK flights if possible to make them far less attractive to transfers. T/A routes may be downscaled due to lack of passenger Demand and certainly would not grow anymore. Instead of going to Dublin, many English passengers would instead drive/fly to Heathrow and further increase the loads on BA' flights.
Why do this if it's going well? Why could IAG not run the airlines independently of eachother, like the LH group does with LH, SN, OS, LX, etc.?
Why would anyone want to grow a business that would hurt another of their business'? IAG in my view want to make as much profit as they can, and if this means smothering their competition while getting the added benefit of gaining a profit from another part of EI, than why wouldn't they buy it?
A company should not own two competing Airlines that are based only a few hundred miles from eachother. It just doesn't make sense.
Why ever not? It
does make sense! that's the whole point, IAG would make money from both.
It's not BA and EI in isolation. The parent company, IAG, would be buying EI, not BA.