Sep 28, 2016, 2:57 pm
Last edit by: JDiver
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 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
"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
Link to Wikipedia article about Aer Lingus
Aer Lingus IAG take over bid [Master Thread]
Feb 5, 2015, 2:47 pm
#136
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Feb 6, 2015, 3:54 am
#137
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Originally Posted by ATWonline
Scandinavian Airlines (SAS) has sold one of its 21 London Heathrow Airport slot pairs to an unnamed “major international carrier” for $60 million.
Maybe Deloitte weren't too high on their valuations afterall!
Feb 6, 2015, 4:23 am
#138
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Incidentally, the UK Court of Appeal will rule next Thursday on the Competition Commission's ruling that Ryanair sell down its holding to 5%.
A further appeal is expected from whichever side loses, so the ruling itself may not have such an impact on the current discussions. Though you can't totally rule out Ryanair wishing to sell now, at a time when they could more or less recoup their investment - going forward, it is hard to see them being able to get as good a price again for a long while.
A further appeal is expected from whichever side loses, so the ruling itself may not have such an impact on the current discussions. Though you can't totally rule out Ryanair wishing to sell now, at a time when they could more or less recoup their investment - going forward, it is hard to see them being able to get as good a price again for a long while.
Feb 6, 2015, 12:52 pm
#139
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What is interesting is the split between EI cabin crew on the matter. The younger members seem to embrace an IAG takeover but the older ones on better contracts fear an IAG takeover. I guess they feel they will have their conditions changed or be made redundant for lower paid new recruits.
Feb 7, 2015, 12:25 am
#140
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A flurry of articles today:
Aer Lingus Heathrow slots could be worth €1.2bn
Latest value set to exert further pressure on Coalition over €2.55-per-share for 25% stake
But - what is their "value" when they can't be sold?
It's hard to see every one of EI's slot pairs fetching a high price - not all slots are at times that would, for instance, be optimal for long haul flights. And putting a glut of slots up for sale could reduce the prices they attract.
IAG to outline cargo and passenger growth plans for Aer Lingus
Group to undertake to build traffic volumes into and out of Ireland
In addition to guaranteeing Heathrow slots for five years from Dublin, Cork and Shannon, IAG will promise to build traffic volumes in and out of Ireland. It will outline its intention to run more direct flights from Dublin to a range of destinations, as well as routing traffic from Dublin – as a hub in its own right – through its existing hubs in Heathrow and Madrid, the latter providing a gateway to Latin America.
Right or wrong, there is a growing sense that Aer Lingus could slip from International Consolidated Airlines’ Group’s (IAG) grasp purely because the level of political noise that followed its takeover approach has completely spooked the Government.
Originally Posted by The Irish Times
Aer Lingus Heathrow slots could be worth €1.2bn
Latest value set to exert further pressure on Coalition over €2.55-per-share for 25% stake
It's hard to see every one of EI's slot pairs fetching a high price - not all slots are at times that would, for instance, be optimal for long haul flights. And putting a glut of slots up for sale could reduce the prices they attract.
Originally Posted by The Irish Times
IAG to outline cargo and passenger growth plans for Aer Lingus
Group to undertake to build traffic volumes into and out of Ireland
In addition to guaranteeing Heathrow slots for five years from Dublin, Cork and Shannon, IAG will promise to build traffic volumes in and out of Ireland. It will outline its intention to run more direct flights from Dublin to a range of destinations, as well as routing traffic from Dublin – as a hub in its own right – through its existing hubs in Heathrow and Madrid, the latter providing a gateway to Latin America.
Originally Posted by The Irish Times
Right or wrong, there is a growing sense that Aer Lingus could slip from International Consolidated Airlines’ Group’s (IAG) grasp purely because the level of political noise that followed its takeover approach has completely spooked the Government.
Last edited by irishguy28; Feb 7, 2015 at 12:42 am
Feb 8, 2015, 2:41 pm
#142
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SNN is the Irish PIK.
Both Shannon and Prestwick thrived in the days when aircraft had to stop there for tech purposes. Neither are near to major O&D locations.
The legacy stuff means that both locations are great for aerospace work - i.e. maintenance. They make lousy hubs though as they have minimal traffic.
An acquisition of EI by IAG would be a boost to DUB as a hub for all the reasons discussed. This would probably actually increase EI's profitability and prospects of growth. Minimal impact on SNN.
Except political angst is driven by local politics. Even Dublin TDs aren't going to be positive - all they hear now are the squeals from unions whose long-serving members are on fairly toppy old contracts. Said members saw the BA/BASSA dispute the other side of the water and are well aware that WW is a tough guy...
Both Shannon and Prestwick thrived in the days when aircraft had to stop there for tech purposes. Neither are near to major O&D locations.
The legacy stuff means that both locations are great for aerospace work - i.e. maintenance. They make lousy hubs though as they have minimal traffic.
An acquisition of EI by IAG would be a boost to DUB as a hub for all the reasons discussed. This would probably actually increase EI's profitability and prospects of growth. Minimal impact on SNN.
Except political angst is driven by local politics. Even Dublin TDs aren't going to be positive - all they hear now are the squeals from unions whose long-serving members are on fairly toppy old contracts. Said members saw the BA/BASSA dispute the other side of the water and are well aware that WW is a tough guy...
Feb 9, 2015, 1:55 am
#143
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Feb 9, 2015, 5:53 am
#144
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Exactly what the crew said to me the other day! They didn't like him when he was at EI and they think he has not changed his spots. They are very concerned about their futures. Of course back then EI was a very different airline and in a very different position. I actually have more faith and doubt there is anything more to be read into his desire to bag EI.
Feb 9, 2015, 7:59 am
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Feb 9, 2015, 10:10 am
#146
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Government to reject Aer Lingus bid; Bloomberg
The government is preparing to reject IAG's indicative offer to buy its 25% stake in Aer Lingus, according to Bloomberg.
The news agency is quoting an individual familiar with the negotiations.
The stock has fallen by nearly 10% in Dublin.
A final decision has yet to be taken, according to the source, who asked not to be identified because the matter isn't public.
The Department of Transport has declined to comment on the status of deliberations, as did a spokeswoman for IAG.
Last week, IAG Chief Executive Officer Willie Walsh offered assurances on maintaining Aer Lingus routes between Ireland and the UK as he sought to overcome mounting political resistance to the proposed takeover of the airline he ran until 2005.
IAG has said it won't proceed without the endorsement of the government.
http://www.rte.ie/news/business/2015...bid-bloomberg/
The government is preparing to reject IAG's indicative offer to buy its 25% stake in Aer Lingus, according to Bloomberg.
The news agency is quoting an individual familiar with the negotiations.
The stock has fallen by nearly 10% in Dublin.
A final decision has yet to be taken, according to the source, who asked not to be identified because the matter isn't public.
The Department of Transport has declined to comment on the status of deliberations, as did a spokeswoman for IAG.
Last week, IAG Chief Executive Officer Willie Walsh offered assurances on maintaining Aer Lingus routes between Ireland and the UK as he sought to overcome mounting political resistance to the proposed takeover of the airline he ran until 2005.
IAG has said it won't proceed without the endorsement of the government.
http://www.rte.ie/news/business/2015...bid-bloomberg/
Feb 9, 2015, 11:03 am
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"'Premature' to say Government will reject Aer Lingus offer"
Aer Lingus has declined to comment
A senior Labour Party source has described as "premature" a Bloomberg report that the Government is preparing to reject the indicative IAG bid for its 25% stake in the airline.
The source said they were not expecting the issue to arise at tomorrow's Cabinet meeting.
Another source noted that there was a process for addressing the bid with the assistance of a special committee and that process was ongoing.
Bloomberg's report that the offer will be reject quotes an individual familiar with the negotiations.
A senior Labour Party source has described as "premature" a Bloomberg report that the Government is preparing to reject the indicative IAG bid for its 25% stake in the airline.
The source said they were not expecting the issue to arise at tomorrow's Cabinet meeting.
Another source noted that there was a process for addressing the bid with the assistance of a special committee and that process was ongoing.
Bloomberg's report that the offer will be reject quotes an individual familiar with the negotiations.
Last edited by NYCRuss; Feb 9, 2015 at 11:12 am
Feb 9, 2015, 11:09 am
#149
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Fingers crossed!
If the government turns up their nose at this deal, they can expect that any future offers - whenever they may come, and whoever might be making them - will be hostile.
If the government turns up their nose at this deal, they can expect that any future offers - whenever they may come, and whoever might be making them - will be hostile.
Feb 10, 2015, 2:25 am
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Politicians' posturing on Aer Lingus may haunt them later
Originally Posted by Irish Independent
Vociferous politicians, mainly from Labour but including the Taoiseach, may already have been backed into a position where they are defending the hierarchies and fiefdoms of the baggage hall at Dublin Airport rather than the interest of the Irish consumer or Irish tourism.