Ba & Ei?

[FormerFlyer]

Now that the Irish government will be selling a majority stake in EI is this not the perfect opportunity for Mr Walsh to purchase it & operate a shedload of European routes on BA's behalf ex-LHR?

Simple really - purchase an existing low cost carrier & bring it in-house. Could it be done?

cheers ;)
FF

[Re-Heat]

Intuitively, an independent airline or affiliate would be able to apply for more slots at Heathrow despite flying for that airline - such as BMed is able to do - therefore increasing slot penetration at Heathrow and opportunities on more profitable routes - or lowering the cost base on existing ones.

Whether BA has the ability to acquire a stake is another matter - though its debt burden is now low enough to allow greater borrowing to fund acquisitions and purchases, it may be the case that with an impending reduction in capital when pension liabilities are brought on balance sheet that an investment of that kind might be more of a burden than not.

Ideally an acquisition should be able to make use of economies of scale - what if any could be made by such appear low as the workforces would ultimately demand integration and reversal of those cost benefits. If they acquire just a stake, they cannot control it to do as you suggest; if they acquite a majority stake and hence control, the benefits of slot acquisition are negated. A transferral of routes down to a lower cost base at the same flying base would also negate many union agreements.

So maybe - if there was a detailed analysis performed, but probably not.

[islandhopper]

Is that a yes or a no then..................:yuk:

[MarkD]

FF, as has been pointed out, why would you do that when GB and BMed are there? EI's industrial relations issues aren't going away any time soon.

[HZ123]

WW hasa shed load of IR problems to resolve at BA, namely Crews and Ramp staff, not forgetting T5 migration.

[PAXboy]

would be able to apply for more slots at Heathrow Of which there is an abundant supply, just waiting to be picked up ...

[flyer55]

Ba has alot going on at the moment ranging from a New Chief Executive and New Board Members to the planned changes to LGW. Who knows what BA will do ? EI are no frills ba is still a Full Frills Airline and depends on Willie Walsh if he likes Subsidaries and Franchises?
What about the Oneworld Alliance?

[Dash-7 lover]

Going on the recent 80% increase in profits, and If I was CEO of BA, I would stay clear of any 'lo-cost' notion because the general feeling is that the bubble is about to burst with the public on the locost idea.

[Irish Steve]

would be able to apply for more slots at Heathrow

And that could be one of the attractions of EI to other operators, they have a significant number of slots at LHR.

The Irish Gov't will be watching that very carefully, they won't be happy to see LHR lost as a link to Ireland, but at the same time, I can see the time coming when there will be changes to the way that LHR-DUB operates, and there are also a significant number of slots used to ORK & SNN.

[HZ123]

Many of your comments are flawed. BA has taken over CityFlyer, British Regional plus a number of others and our record is grim. The two mentioned came to us with good balance sheets and efficent operations. Visit what is left of them and you find BA's medling has as good as ruined them. Surely we do not need anymore.