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Old 27th May 2015, 19:33
  #2932 (permalink)  
Fairdealfrank
 
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Why aren't they up in arms? Perhaps because there is as yet no formal bid or transaction for the competition regulator (CMA or DG COMP) to evaluate? Once IAG makes a formal bid and there is something for the regulator to look at, you can expect it to get involved.
Probably because VS isn’t whinging this time. Which other carrier wants to LHR-DUB? It’s not an issue.



The whole debate rages on about the finer details of the promises that IAG is expected to make. Yes we need a commitment that IAG would not scrap flights from Ireland to the UK, and that guarantee looks good for 7 years. But there are 2 issues here:


1. BA could simply axe their own 8 times daily DUB LHR route and put the slots elsewhere, and EI could step up the route to 321's as opposed to 320 (and the rare 319s on the route these days). So in effect, capacity could be reduced...


2. Qatar Airways are in the background with a large interest in IAG, while the most likely would be prevented from taking over a majority of the group, changes in dynamic and ownership, may put any agreements made now between Ireland and IAG is doubt... not as if the Irish government could regain its shareholding.


All in all DUB LHR is a very attractive route of significant scale. So it will be in place, we can be very sure about that. But it is Cork and Shannon that needs the assurances the most....


EI-BUD
Why would BA cut LHR-DUB? This is not about LHR slots, BA has more than it can handle with the takeover and closing of BD, hence the increase in its shorthaul holiday routes from there. AFAIK, this is because of a current shortage of suitable aircraft which, once resolved, should see the commencement of new BA longhaul routes.

Because of the shortage of rwy capacity at LHR, more UK airports are connected to AMS and DUB than to LHR, and consequently, EI and KL take a great deal of transfer pax that, given sufficient LHR rwy capacity and therefore sufficient links to smaller UK airports, could be BA’s.

Buying EI gives IAG an opportunity to grab some of this transfer traffic. Equally important, it prevents another carrier from doing so.

That is what IAG ownership of EI is really about, it’s not BD reheated.



This in my view can only be a positive development. Despite commentators on RTE explaining how the company has been profitable etc. the fact is that Ryanair is growing its point to point traffic, and the Aer Lingus needs to be part of something bigger.
Yes, this deal very much benefits EI. Also looking forward to EI’s return to the Oneworld Alliance.


This has to be good news for EI...in today's world, smaller airlines are struggling, and security comes from being part of a bigger group. EI is a well-run and profitable small airline, but to maintain that position will become more difficult against the consolidated big guys. Now, IAG can bring investment in a significant way...4 new transatlantic routes for a start. That has to be attractive. LHR will be secure, as FR and others will provide the competitive pressure. And I've always seen this move as IAG ensuring they have insurance against the lack of an R3 at LHR. They can now route north American TA business via either LHR or DUB and south American via LHR or MAD. If you live in Glasgow or Manchester, a BA / EI flight via DUB to JFK / BOS / SFO / IAD / YYZ / MCO etc. might be a tempting proposition...
Agree, it’s win-win all round. Also when it comes to new aircraft, being part of IAG can secure a better deal.

The LHR rwy issue has a bearing up to a point: expansion at DUB could be much bigger if (when?) the rwy doesn’t materialise.


BA1/3 taking on pax at Shannon! That'd be an interesting development.
Would be surprised if there were huge numbers queuing up for it.
Its a niche and very expensive route.
Pax joining/ leaving at SNN wouldn’t disrupt the schedule and wouldn't add to costs, so may as well do it, but it’s going to be a problem on the eastbound leg!

If EI moved their flights to T5, it would vastly improve the experience of connecting in Heathrow.
Had taken it for granted that this would happen! The common travel area arrivals channel is now set up there, and it would also make transfers a whole lot easier. Moreover, IB are also at LHR-5.
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