FlyerTalk Forums - View Single Post - Aer Lingus as a possible model for US Airways.
Old Sep 25, 2004 | 7:56 pm
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chicagorich
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Originally Posted by shuttle_boy
Notwithstanding the difference in size and market conditions, there are many similarities between U's current situation and the challenges Aer lingus faced some time ago.

Both faced fierce competition from LCC in the local market. EI from Ryanair (who imported the WN model into Europe) and U from WN et al.

Both have a transatlantic operation and were members of larger global alliances. EI was in One World, U is now in *A.

Both fly a fleet of newer Airbus and older Boeing aircraft.

Both have a heavily unionized workforce.

Air lingus seems to have been able to morph into a quasi LCC in the local ( domestic and European market), and expand service in that market whilst retaining the transatlantic operation.

Indeed it seems that U is adopting many of the same tactics, simplified fare structure, greater emphasis on the internet as a channel of distribution, droping short and unprofitable routes, low cost marketing by slogan (EI Low fares, Way better. U No fees, No Brainer), repainting aircraft to publicise the web site etc. I know a lot of this is standard practice for the post 9/11 industry, but there seems to be enough similarities and EI was able to come back from the brink and is now profitable.
I had read that Aer Lingus was dumping business class altogether and would pull out of OneWorld.....

Aer Lingus planning to axe business class service
online.ie
2004-08-25 07:50:02+01

Aer Lingus is reportedly planning to axe its business-class service as part of its latest restructuring plan.

Reports this morning said the move would force the company to withdraw from the One World Alliance, which linked Aer Lingus with several other airlines.

Aer Lingus has already announced plans to cease its interline cargo service as part of the restructuring plan, which is designed to help the airline compete with Ryanair by transforming it into a "no frills" carrier.

The axing of the cargo service has sparked anger among many firms operating in Ireland, and the move to drop the business-class service is expected to prompt a similar response.
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