FlyerTalk Forums - View Single Post - IAG Half Year Results & Termination of Air Europa Deal
Old Aug 6, 2024 | 10:53 am
  #26  
PLeblond
Formerly known as tireman77
 
Join Date: Dec 2013
Posts: 7,794
Originally Posted by Pilot37
Actually, the Ireland v UK link was not that much of a factor for the IAG purchase of EI, it was the simple fact that Dublin (at the time) wasn't slot constrained and could be used to launch a whole host of new transatlantic routes which BA would struggle with given LHR's 'full' status. The proof is the number of new North American destinations EI has launched since the take-over and BA is also very happy to funnel a lot of economy passengers via EI (40% of their North American capacity was used by transit passengers last year).

TAP has a very strong grip on the Europe - Brasil market and I think this is an easy way for IAG to essentially guarantee they are No.1 in terms of passengers and freight to South American via Lisbon and Madrid if the take-over went through. Lisbon will eventually get a new airport and thus more slots will open up, but with such a strong historical connection between the Iberian peninsula and South America, having the 2 flag carriers for Spain and Portugal in your stable gives you a huge presence and revenue opportunity.

Pilot37
Valid points and thanks for the added information on the EI deal.I’m not sure I’m onboard on the freight side, though. TP seems to be operating 3 x A339’s daily between LIS & GRU. Had there been significant freight, then I don’t understand the decision for the A339 as that much traffic would make more sense with a 777 or a 787-10, or at the very least A359. If freight were a significant factor, they should have made a better choice of metal.

I checked Brazil’s largest trading partners and in Europe, the Netherland’s was top (#4 overall) followed by Spain (#7). LATAM is operating a 777 daily to LIS & a combo of 777/787s to MAD. Given that, it would make sense to me to absorb TP into IB and run LIS as an alternate IB hub and get some 777Xs for MAD/LIS-GRU routes.

Of course, and as usual, if I were that smart, I’d be on an airline’s route and fleet planning team and have access to a plethora of actual data.


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