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Aer Lingus IAG take over bid [Master Thread]

Old Sep 28, 2016, 2:57 pm
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Aer Lingus takeover by IAG

Executive summary: Rumours of IAG (International Consolidated Airlines Group, British Airways, IAG Cargo, Iberia and Vueling - Link to Wikipedia article) interest in acquiring EI strengthened in December 2014, with refusals and objections by then 29% owner Ryanair, EI Board of Directors and some Irish government leaders (a 25% stake was held by the Irish government).

Aer Lingus, currently headed by CEO Stephen Kavanagh, was acquired by IAG for 1.36bn in 2015; IAG took full control of Aer Lingus on 02 Sep 2015.

Aer Lingus is working to join the oneworld airline alliance and plans to expand service to the U.S. later this year and next, CEO Stephen Kavanagh said Wednesday.

...Aer Lingus will strive to join the oneworld alliance that counts British Airways and American Airlines among its founding members.

There are some advantages to joining the big-boys club, Kavanagh said. While Avios will be a competitive tool, ultimately, we believe that will result in our joining again oneworld, he said.

Link
to USA Today article - 18 May 2016
Aer Lingus is on target to join the OneWorld alliance next year (2017), when it should also be able to benefit from BA's joint venture with American Airlines.

"The next big integration issue will be Aer Lingus coming into the joint business on the transatlantic. That will require some systems changes," said (IAG CEO) Mr Walsh.

Link to article in Independent - 30 Apr 2016
On 26 May 2015, after months of negotiations on a possible IAG takeover, the Irish government agreed to sell its 25% stake in the company. Ryanair retained a 30% stake in Aer Lingus which it agreed to sell to IAG on 10 July 2015 for 2.55 per share. In August 2015, Aer Lingus' shareholders officially accepted IAG's takeover offer. IAG subsequently assumed control of Aer Lingus on 2 September 2015.

Link to Wikipedia article about Aer Lingus
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Aer Lingus IAG take over bid [Master Thread]

Old Feb 24, 2015, 10:35 am
  #166  
 
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Originally Posted by starflyergold
Really what does PD really know about aviation, I wonder what LV's opinion would be if he was still Minister . This is Irish politics at its worst, it almost makes me cringe. I am open to valid and realistic arguments, but when see the committee debates and the questions being asked, it is truly a joke. If IAG really wanted to, they could cripple EI in less than a year if they wanted to. As CM said today the issue here as far as the government shouldbe concerned is is it a good deal for "IRELAND INC"??
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Old Feb 24, 2015, 10:41 am
  #167  
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Originally Posted by eireman
I wonder what LV's opinion would be if he was still Minister .
You raise a good point. He is very much missed in Aviation and I feel is being wasted in his current guise.
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Old Feb 24, 2015, 5:41 pm
  #168  
 
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These politicians don't give a crap about aviation in Ireland or even how Ireland Inc. looks 10 years down the line, there's an election coming within at most 14 months and that's the relevant factor. In a country where populism has always played well - but especially since the crisis - you could probably make a better *political* case for completely nationalizing Aer Lingus than selling the government's stake in it.
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Old Feb 25, 2015, 11:45 am
  #169  
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Did someone say gombeen politics?
CITYJET chairman Pat Byrne has dubbed the Government's rejection of the IAG takeover offer for Aer Lingus "gombeen politics at its worst'"....
http://www.independent.ie/business/i...-31021049.html
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Old Feb 27, 2015, 6:37 am
  #170  
 
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I see "Socialist Party TD Ruth Coppinger said it would be really reckless for an island nation to give up its airline.

Speaking at a press conference to publicise a private members' Dil motion opposing austerity, she said Aer Lingus is a prosperous company and workers will resist its sale"

Hmmmm....

Anyway, meantime elsewhere WW plays another card

http://www.independent.ie/business/i...-31026734.html

That sounds like a bargaining position to me. I reckon a fiver (sterling or euro) that the slot guarantee period is longer than 5 years, less than 10 and that the transaction completes....
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Old Feb 27, 2015, 8:09 am
  #171  
 
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Originally Posted by londonbus
I see "Socialist Party TD Ruth Coppinger said it would be really reckless for an island nation to give up its airline.

Speaking at a press conference to publicise a private members' Dil motion opposing austerity, she said Aer Lingus is a prosperous company and workers will resist its sale"

Hmmmm....

Anyway, meantime elsewhere WW plays another card

http://www.independent.ie/business/i...-31026734.html

That sounds like a bargaining position to me. I reckon a fiver (sterling or euro) that the slot guarantee period is longer than 5 years, less than 10 and that the transaction completes....
Looks like EI is becoming that unobtanium material that formerly MOL and now WW wants.

It will be interesting to see the outcome of the talks with the unions - if the unions offer a vote of confidence at the end of the day for the takeover bid after WW does his charm offensive on them - the politicians (be it Taoiseach, TDs or whoever opposing) will look like the most short-sighted people in the house.
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Old Feb 27, 2015, 1:22 pm
  #172  
 
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Nice to see a government with the brains to stand up to airline mergers - which always, IMO, harm the consumer - and have the stones to actually do it.
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Old Feb 27, 2015, 3:29 pm
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Originally Posted by Indelaware
Nice to see a government with the brains to stand up to airline mergers - which always, IMO, harm the consumer - and have the stones to actually do it.
..except EI is in a weaker position come the next recession/oil price shock.


"Standing up" in this case is not pro-consumer. Its gombeenism...
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Old Feb 28, 2015, 1:00 am
  #174  
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Originally Posted by Indelaware
Nice to see a government with the brains to stand up to airline mergers - which always, IMO, harm the consumer - and have the stones to actually do it.
Except that this is actually a deal that is good for Ireland and good for the travelling public.

The government's misgivings come from their lack of "stones" - they fear being voted out of power, particularly the junior party's sitting candidates, whose seats are already all but lost, in constituencies with vocal Aer Lingus union groups.

And it's not a merger, per se - Aer Lingus would be run as a separate company, just as BA, Iberia and Vueling are run as separate companies.
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Old Feb 28, 2015, 12:54 pm
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Originally Posted by irishguy28
And it's not a merger, per se - Aer Lingus would be run as a separate company, just as BA, Iberia and Vueling are run as separate companies.
If it walks like a duck, quacks, like a duck, and has the same parent...
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Old Mar 1, 2015, 1:37 am
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Originally Posted by Indelaware
If it walks like a duck, quacks, like a duck, and has the same parent...
The transaction would drive a better deal for passengers from UK regional airports going transatlantic. EI doesn't have the resources to scale up. The transaction would achieve this.

Where it might be an issue is LHR-DUB; much in the way that the IB/BA transaction causes an issue LHR-MAD.
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Old Mar 12, 2015, 4:56 am
  #177  
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The FT is usually far more sober and reliable than other news outlets...

so let's hope this is true. This saga has run for long enough!

Originally Posted by The Financial Times
IAG and Dublin close to agreement on Aer Lingus takeover


People familiar with the deal IAG has made a 1.4bn bid for Aer Lingus said the UK-based company and the Irish government are closer to agreement than they have ever been.

The real sticking point is whether Mr Walsh and the Irish government will compromise on the Heathrow slots guarantee.

IAG has made clear that any extension of its five-year guarantee for keeping the Aer Lingus slots on Irish routes would have to be commercially sound. This would require significant concessions which Dublin may not be able to deliver.
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Old Mar 13, 2015, 3:57 am
  #178  
 
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Originally Posted by irishguy28
The FT is usually far more sober and reliable than other news outlets...

so let's hope this is true. This saga has run for long enough!
Amazing news indeed!

I hope local Irish news outlets doesn't make so much noise again - this deal really is a good one for Ireland - a once in a lifetime opportunity for it to revitalise its long-haul aviation plans and to strengthen Aer Lingus. If the news outlets does, I'm afraid the government have to resort to the populist "nay-nay-nay" rhetoric to seemingly appease the locals (which is super odd at least here).
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Old Mar 13, 2015, 12:20 pm
  #179  
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I took a quick glance through this thread and didn't see an answer to this question, however if it is there I apologize in advance.

If this does go though, will Aer Lingus rejoin OW? I have a small stash of OW miles I would love to use and I prefer flying though Dublin for the US Customs advantage.
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Old Mar 13, 2015, 2:04 pm
  #180  
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Originally Posted by kmht
If this does go though, will Aer Lingus rejoin OW? I have a small stash of OW miles I would love to use and I prefer flying though Dublin for the US Customs advantage.
IAG does indeed plan on having EI rejoin oneworld if the deal goes through.
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