Originally Posted by
akerosid
- IAG is on record as having stated that it wants to build hub at DUB. How does this manifest itself? What exactly is it going to do to ensure this happens (or is it all down to EI)?
- If there is a competition for new acft between BA, IB and EI for new long haul aircraft, in what circumstances could EI possibly win this, given that LHR and MAD are bigger hubs.
- If EI's business plans are found lacking, then why is senior management still in place? If they produce growth plans which result in aircraft intended for them being reassigned to other operators, either (a) the other markets are much bigger and EI/DUB will always be the cinderella, or (b) EI's growth plans are not sufficiently ambitious. Which is it, and what will be done to address it?
There's no doubt that IAG will want to grow EI and DUB, provided it can do so profitably.
IAG wanted to buy EI partly because of its strong brand recognition in the US and also because BA was losing transatlantic traffic from its frequent flyers in the regions to EI and DUB.
Joining Oneworld and the AA/BA/IB/AY transatlantic business, codesharing, leveraging BA's network and distribution in the UK, and adopting the Avios frequent flyer currency all will give EI a big fillip on the revenue side.
On top of that you have cost synergies and the application of IAG "know how" to areas like revenue management (which IAG completely overhauled at IB).
Remember, when comparing EI to both BA and IB, they have had the benefit of five years to gain revenue and cost synergies following the formation of IAG and IAG is still at an early stage in consolidating some back office functions like IT.
And for the record IAG's planned capacity growth in 2016 is 2.9% for BA, 6.2% for IB, 14.5% for VY and 9.4% for EI. So EI will have the 2nd highest growth rate for IAG in 2016.