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Old 20th Dec 2014, 12:49
  #2421 (permalink)  
 
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I thought they were Virgin slots and Aer Lingus were operating on their behalf.
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Old 20th Dec 2014, 12:54
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They were BMI slots given to VIR when BA bought BMI. They had to be used domestically and VIR were given them to compete with BA. When Little Red ends they actually go back to.....BA, or at least that's the case if nobody else steps in to compete with BA. Maybe EI can do this
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Old 20th Dec 2014, 16:41
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Given to VIR in a bidding competition, my point is you cannot assume Aer Lingus may automatically inherit the right to use them, or even be given the chance to use them.

I understood if VIR failed to use them for the 3 year period they would revert to BA, be interesting to see what happens.
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Old 20th Dec 2014, 20:39
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According to Jethro's site, EI-EWR will now be replaced with a 767, is there any truth to these claims?
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Old 20th Dec 2014, 22:42
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If IAG were successful in a bid for Aer Lingus, there would be a referral to the competition authorities, who would analyse the deal on a route-by-route basis.
Then give it a nod through as its not FR buying and watch as Dublin becomes a remote outpost as the jobs get moved elsewhere.
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Old 20th Dec 2014, 23:41
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EI

Oh dear it must be the season of goodwill , I agree with Racedo

FR and BA would close EI asap if they got control, jobs would go overnight

EI just does too well for both of their liking !
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Old 21st Dec 2014, 00:11
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I understood if VIR failed to use them for the 3 year period they would revert to BA, be interesting to see what happens.
My understanding as well unless another (EU) carrier wants to take it on. Can only think of EI and U2 as possible contenders, but not having an interest in it before, don't see what has changed.


FR and BA would close EI asap if they got control, jobs would go overnight
Don't see any circumstances where both FR and BA would be running EI.

In the event of BA and EI have to lose some LHR-DUB slots, it's unlikely that FR would want to operate the route. FR has clearly stated that it is not interested in LHR, CDG and FRA.

Would FR be allowed to lease out the slots? Unlikely.


EI just does too well for both of their liking !
Indeed, if that's the case, get a piece of the action. Buy EI and pocket the profits, don't fix it if it's not broken.
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Old 21st Dec 2014, 08:32
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According to Jethro's site, EI-EWR will now be replaced with a 767, is there any truth to these claims?
The 767 is for SNN to upgauge BOS for a few months and give DUB a third JFK using the 757 released; its a different lease.
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Old 21st Dec 2014, 11:34
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Oh dear it must be the season of goodwill , I agree with Racedo

FR and BA would close EI asap if they got control, jobs would go overnight
You have agreed with me before.................... you know you have

FR wouldn't close it as no need to do so just intergrate........... yup jobs would have gone but they not customer facing ones.

The No to Fr side said no need to lose any jobs at EI and then EI management proved FR correct in doing what FR said it would do.
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Old 21st Dec 2014, 12:06
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I were an EI employee, I'd pick IAG over FR for job security all day long! But it's not a choice I would enjoy making. It's immaterial anyway, competition authorities have repeatedly blocked and FR takeover, and IAG have made a bid they knew the EI board would reject. I think whoever BA are trying to scare off might be the one to worry about.
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Old 21st Dec 2014, 13:01
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IAG will never get it over the line even with a higher bid, EY and the Gov make up 30% so if FR backed them they will still find it dofficult to secure the other shareholders which all only have tiny shares. The fourth biggest holder (2.1%) said they would consider if an extra 35c per share was added.

The big question is will FR go to the market now or really drag it to Europe again and waste more cash.
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Old 21st Dec 2014, 17:44
  #2432 (permalink)  
 
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IAG will never get it over the line even with a higher bid, EY and the Gov make up 30% so if FR backed them they will still find it dofficult to secure the other shareholders which all only have tiny shares. The fourth biggest holder (2.1%) said they would consider if an extra 35c per share was added.
Never say never. If FR has to sell, it might as well be to IAG, and get a good price. The BA/FR businesses hardly overlap, maybe on a handful of city-pairs but no airport-pairs.

EY could only ever own 49% of EI, so much depends on the Irish government's attitude, and there would undoubtly be some "red lines". Does it need the dosh? Would it prefer "the devil you know" to "who knows"?
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Old 21st Dec 2014, 22:58
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IAG buying Aer Lingus would be 10x worse than Ryanair buying Aer Lingus.

IAG will efficetively shut down all transfer traffic from the Uk-Us via Dublin. The hub status that Dublin is hoping to achieve would be no longer possible and EI would probably pull out of Shannon and Cork.
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Old 22nd Dec 2014, 11:54
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IAG buying Aer Lingus would be 10x worse than Ryanair buying Aer Lingus.

IAG will efficetively shut down all transfer traffic from the Uk-Us via Dublin. The hub status that Dublin is hoping to achieve would be no longer possible and EI would probably pull out of Shannon and Cork.
History paints a completely different picture. Just look at Buzz.


It might be worth recalling what happened at Vueling if we want to predict the near future.

IAG offered €7 a share and were unsuccessful. They then returned with an offer of €9.25 (a 32%) increase and succeeded.

I haven't read what price IAG had in mind with their recent offer to the EI board but even if it was as low as €2 per share, if they follow their Vueling strategy, they could return with an offer of at least €2.64.
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Old 22nd Dec 2014, 20:23
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IAG will efficetively shut down all transfer traffic from the Uk-Us via Dublin. The hub status that Dublin is hoping to achieve would be no longer possible and EI would probably pull out of Shannon and Cork.
Not so sure...DUB might be an enticing option for UK regions to the US, and BA might well support that. If it takes some pressure off the LHR operation, it could be beneficial for BA. I actually think EI in IAG would be in a healthy position...finally having the protection and resources of a big group, and possibly playing a key role in that group via DUB.
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Old 22nd Dec 2014, 21:06
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IAG will efficetively shut down all transfer traffic from the Uk-Us via Dublin. The hub status that Dublin is hoping to achieve would be no longer possible and EI would probably pull out of Shannon and Cork.
Think that is most unlikely, what would be the point?

Surely the motivation for IAG to buy EI is:

(1) having seen (from the sidelines) LH asset strip BD's LHR slots after 2009, IAG would be reluctant to see another carrier/group do similar to EI at LHR and upset the current balance at "fortress Heathrow";

(2) if there's a profitable outfit with a thriving trans-Atlantic sector and a big presence at LHR up for sale, it would be stupid not to buy it;

(3) it creates the ability to channel trans-Atlantic pax from airports not linked to LHR through DUB and take on KL;

(4) it creates the ability to offer trans-Atlantic pax from airports an additional option of using USA pre-clearance at DUB;

(5) to leave EI as an Irish "flag carrier" (it may be a regulatory requirement) because it's profitable, and because BA doesn't need LHR slots, there's no need to asset strip EI's LHR slots.
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Old 22nd Dec 2014, 22:59
  #2437 (permalink)  
 
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Grrr

Did BA close down Iberia?
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Old 22nd Dec 2014, 23:04
  #2438 (permalink)  
 
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Nope, just focused them more on South America. Am I right in saying only BA routes to South America now are Buenos Aires, Rio and Sau Paulo? And only IB routes to NA are ORD, JFK, BOS and LAX? Obviously consolodations have been made there.

I find it unlikely BA are going to increase EI's TA schedule at the expense of their own, as opposed to reducing their SA offerings to suit IB, as has happened
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Old 22nd Dec 2014, 23:12
  #2439 (permalink)  
 
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Nope, just focused them more on South America. Am I right in saying only BA routes to South America now are Buenos Aires, Rio and Sau Paulo? And only IB routes to NA are ORD, JFK, BOS and LAX? Obviously consolodations have been made there.
If you mean BA, it may happen when it has sufficient longhaul aircraft, at present, it doesn't, hence the use of some the LHR slots it inherited for Mediterranean holiday sun flights.

I find it unlikely BA are going to increase EI's TA schedule at the expense of their own, as opposed to reducing their SA offerings to suit IB, as has happened
Agreed, maybe in addition if demand warrants it, i.e. there are sufficient numbers of connecting pax from UK airports served by EI from DUB, but not by BA from LHR.
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Old 22nd Dec 2014, 23:43
  #2440 (permalink)  
 
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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.

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.
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