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AER Lingus is to axe its business class

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Old 25th Aug 2004, 09:07
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Angry AER Lingus is to axe its business class

From the Irish papers this morning. For what its worth I think it's a big mistake. I use the business class on a regular basis and it almost always at full load.


AER Lingus is to axe its business class and pull out of the One World Alliance.

The moves are part of the change to a no-frills airline which has already provoked fury from commercial users.

Exporters discovered last week that interline cargo would not be carried from September 1, and no cargo anywhere in Europe from January 1.

Customer service staff at the state airline said they were receiving irate phone calls from major multi-national companies.

The withdrawal from the One World Alliance is a direct result of the switch to a no-frills operation. Because it cannot provide a linked-up business class service, Aer Lingus will no longer be connected to airlines such as British Airways, American Airlines, Cathay Pacific, Iberia, Quantas and Finn Air.

The corporate service telephone lines have already been given the chop in the past few weeks, meaning business class customers have to book on the internet and make any complaints by e-mail.

"It has been murder at ground level here over the past few weeks, and it's causing major ructions with companies who are used to booking with us," an Aer Lingus employee said.

"Companies have been coming up and threatening to pull out of Ireland if this goes ahead. People are asking to speak to Willie Walsh, and they are now saying they will contact the Minister for Transport direct.

"The whole point of business class is that you can ring and book flights at the drop of a hat. And the business class section on the flights is always full, don't let anyone tell you otherwise."

The Aer Lingus source questioned why Willie Walsh was being allowed to make these changes prior to an official go ahead for privatisation.

A spokeswoman for the airline confirmed business class within Europe would cease from the second quarter of next year.

She added: "Membership of the One World Alliance is being re-evaluated, and the other members of the alliance are aware of this."

Meanwhile, Siptu shop stewards at the company are to seek a bumper pay rise of up to 15pc when they meet today to discuss their response to restructuring plans.

The airline has outlined radical plans to lay off 1,325 workers in a move that has raised fears among those who remain that they will be asked to do more work.

No decision has yet been taken by the union officials on the size of the pay claim being demanded for staff who remain after the lay-offs, but a figure of between 10pc and 15pc is seen as likely.

Yesterday Siptu's Aer Lingus branch secretary Christy McQuillan would not discuss a pay claim figure but confirmed the shop stewards were to seek a "sizeable wage claim".

Workers who remain with the airline want to ensure they too can share in the benefits of future growth based on their increased productivity and cost effectiveness, he added.

The union warned that its members have already given it an overwhelming mandate for industrial action if necessary.

Mr McQuillan said that the union did not accept there was a need to sacrifice such a large numbers of jobs.
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Old 25th Aug 2004, 09:30
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Sounds to me like they could be taking a major risk here. They'll surely have to axe long haul flights, they cannot be sustained without premium fare passengers. And leaving an established alliance? Not sure if that's a good thing or not.
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Old 25th Aug 2004, 12:40
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By pulling themselves out of One World they're gonna be asking for trouble. Surely BA would start competing on LHR - DUB? Isn't there some sort of agreement at the moment that only Aer Lingus operates this route?

With BA on the route + BMI operating business class on the route won't they lose cutsomers?
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Old 25th Aug 2004, 13:04
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not sure if BA would start LHRDUB - after all they have better things to do with slots (could they find the 8 or 9 they would require) and may not fancy a four way battle with EI, Ryanair and bmi.

After all they don't operate to BHD - instead don't they rely on support from bmi to transfer pax????
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Old 25th Aug 2004, 13:42
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I have heard a rumour, that ba are getting rid of their club europe service, does anyone know if that is true, or if they are replacing it with anything?
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Old 25th Aug 2004, 16:08
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EAL401, they are only axing their business class on short haul routes; it will stay on long haul routes (i.e. transatlantic and whatever other routes they develop).

Even though they are leaving oneworld, they will maintain interline agreements with other carriers in the group, particularly American Airlines.

With regard to LHR, I believe EI has seen the error of just feeding into BA's long haul flights. Much better, it seems to be concluding, to offer its own long haul services. With no developments looking likely this year on US access (thanks to the EU Commission ), we may see EI looking seriously at this option again later in the year. Hopefully they'll get the crew bunk issue sorted out too.
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Old 25th Aug 2004, 19:11
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It maybe that they will be getting rid of the business class branding but certainly charging you the same for the flexibility of the open ticket.

Most of the people that i have seen use it are only using it for the ability to change flights with no financial penalty.

I would advise them to keep the lounges as they are certainly an oasis of calm and keeps the hoi poloi on the outside.

If they got rid of the Trans Atlantic Premier it would probably close down the airline as this is an excellent service and generates a large cash flow for them bringing in alot of US dollars.

As for leaving One World i dont see the point of that as EI cant fly to all the destinations that they feed pax onto BA et al flights.

It seems that WW is going head strong for the LC model but beware, look at whats happening to MOL across the road.
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Old 25th Aug 2004, 22:39
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EI Premier Class

Quote "And the business class section on the flights is always full, don't let anyone tell you otherwise."
1)The business class section on all short haul flights is variable in size so of course they are going to keep empty seats to a minimum by tailoring the cabin size to the booked loads.
2) The days of 121 Premier class pax on heathrow flights are well and truly gone.
3) Premier has been axed from all but USA, AMS and UK flights for the past few months. Why is this such a big surprise?
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Old 25th Aug 2004, 23:15
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Hi
I was on the GLA<>DUB flight on Monday and the business section was full, then again there were only 2 empty seats according to the steward.

The flight back latter that day only had around 2/3 full in business class.

I dont mind if the business part is dropped, the only reason that I end up in business is because the trip was a bit last minute, but even then, they did manage to beat Ryanairs price and the flight departure/arrival times were better thant Ryanairs

I would say that they would certainly be daft to drop the Oneworld unless they have another idea?

On the subjuct of Oneworld, is Emeriates going to drop out of it? They will be dropping out of the BA Executive Club programme shortly, so no points with them.

I also hate funding MOLs pockets but thats for another thread one day.

regards
Radioman
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Old 26th Aug 2004, 00:16
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Strip yourself of your strong national identity. Replace the instantly recognisable symbols of Ireland - the green and the Shamrock, with an anonymous red dot. Sounds like a great marketing idea.....not.

Burn bridges with major partner airlines and drop the service which brings you high-yield traffic and helps your country's economy. Sounds like a great marketing idea.....not.

Lose your unique selling point and make yourself more like your main competitor. Sounds like a great marketing idea....not.

All sounds like the work of consultants, who will have 'flown' away with their whopping fee to create the next disaster.
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Old 26th Aug 2004, 07:20
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All sounds like the work of consultants, who will have 'flown' away with their whopping fee to create the next disaster
or of someone who is deliberately trying to run the value of the company down. Now who could that be.....? *strokes chin*
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Old 26th Aug 2004, 07:31
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did someone mention a management buyout perhaps.................
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Old 26th Aug 2004, 09:45
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if they do drop out of oneworld, and don't accept interline pax as much with the lc principle, will they still have the demand for 14 flights a day, or whatever they operate, between Heathrow and Dublin???? Could they chose to reduce this by just offering say 8 or 9 flights to consolidate the demand (I guess interline must make up at least 33% of their flight????).

If they do do soemthing like this, what will they do with LHR slots? Do Europe ex LHR using the lo-co principle to gain of BA and BD, operate more flights to Ireland (Knock, or Belfast even - or Derry with the rumour of FR looking to ditch) - or would they just sell them and make a tidy profit????
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Old 26th Aug 2004, 13:44
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Well, if you are going to be low-cost, LHR slots are not the cheapest in the world are they... time for SB to do one of two things -

1) force the EI board to demerge its slots in a way that allows the Irish government to take ownership of them and then offer them to any EU company including BA & BD (would have to under EU rules I'd say) who would operate full service and cargo.

2) tell Willie enough is enough - one Ryanair is sufficient.
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Old 27th Aug 2004, 09:28
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EI will achieve c.€100m profits this year and a margin bigger than easyjets (whose shorthaul model they appear to be following more closely than FRs).How is that running down the value of the company?

They lose the responsiblity for bag transfers and connections by opting out of oneworld (and the increased liabilities of the Montreal convention). I predict their next step will be to push "low cost longhaul" and try to steal share from BA, Virgin etc with sustained lower fares.

They actually appear to be doing a pretty good job for now.
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Old 27th Aug 2004, 17:23
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I am a self confessed Paddy.... Not a republican who would cheer Sinn Fein on to the ends of the world but I am proud of my heritage and my country.

For all of our faults we have a few good points. The black stuff is a major one... Our spuds another and prior to the smoking ban, a bit of banter and a pint in the local haunt. So when I am taxing onto stand in a foriegn port and having a good gawk out the window I am happy to see the great big green tail with the infamous and highly expensive shamrock staring right back at me not to mention the bangered up 732's or the RE ATR's bearing the tricolour... or even to go to extremes the old DC still knocking about quite recently in the Aer Turas livery. Then back in Dublin deplaning and seeing all the ground equipment in the once again infamous green colous with the once again infamous slanted shamrock... Now when I look out the window I see plain white handling equipment with a .com sticker plastered on the side or a 737 in the .com livery or even the LX 321's in plain white with a shamrock hanging off the back that somebody from FLS fecked onto the tail overnight while playing a good game of monopoly...

Walsh came along from FUA and turned EI from a goverment supported money hemerging high quality airline into a "low fares" operator with a twist. EI still allocated seats, flew you to Paris instead of an old airfield, the TAB system and an alliance with some very influencial partners and this all worked and EI started to make money and pay back it's debt to the Irish taxpayer (we hope) But now he is going too far... Axing C class?? Killing TAB ?? parting quite a strong alliance ?? and joining the same path of a major compettitor that EI always worked so hard not to be.

It's an absolute joke and this man needs to be stopped before us Paddy's end up with no National Airline, two LCC's and a heavily subsidised ATR operator.

As always, I am open to correction but I think I've been relatively precise....

DUBXH
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Old 27th Aug 2004, 17:52
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add to your list DUBXH that EI will not move to LHR T5 with the other oneworlders so connections to BA and QF will retain the trip on the bus, but probably with your baggage!

otherwise, nail hit on the head.

Hopefully BMI are pulling Baby off MAN-ORK and making it mainline as we speak so I can get YYZ-MAN-ORK...
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Old 29th Aug 2004, 16:24
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Guys

With EI pulling out of Oneworld, expect BA to enter the LHR-DUB with A321's next year

As for the "Premier" product, as of late its really awfull, actually crap!!!!!, About 4 weeks ago, I flew Premier from DUB-LAX and the service was nothing short of disgracefull. When the canapes where served, it was a case of taking what you were given, not like before when you took what you wanted. After the canapes were given ot to pax, I heard one of teh seniors congratulating herself, that she had enough left over for the crew

After the dinner had been served, I had to press the call button to ask for some more wine, and this was met with such a look that, I was made to feel a bloody nuisance

As far as I am concerned, EI can keep their premier service, If I, instead of my company was paying for it, it would be a different matter

And to finish, the premier service that is still going on some European routes, is not much better either
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