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]
Mar 16, 2015, 10:37 am
#181
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The frog boiling process continues, FR board approves TATL plan.....
http://www.lse.co.uk/AllNews.asp?cod...ic_Service__FT
http://www.lse.co.uk/AllNews.asp?cod...ic_Service__FT
Mar 16, 2015, 10:56 am
#182
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I'm not sure how that is directly relevant to the IAG/EI question....
And anyways, the timing of this "announcement" is of little direct consequence. FR have been saying this for years (literally - see threads below from right here on FT!). As they say today, they still don't have any aircraft available to them so it would 4-5 years before they could start...
2001: http://www.flyertalk.com/forum/aer-l...ic-routes.html
2007: http://www.flyertalk.com/forum/budge...ntic-08-a.html
2007: http://www.flyertalk.com/forum/budge...-atlantic.html
2007: http://www.flyertalk.com/forum/briti...c-service.html
2007: http://www.flyertalk.com/forum/budge...satlantic.html
2008: http://www.flyertalk.com/forum/budge...s-ryanair.html
2008: http://www.flyertalk.com/forum/budge...lights-us.html
2008: http://www.flyertalk.com/forum/budge...l-flights.html
2014: http://www.flyertalk.com/forum/budge...s-ryanair.html
And anyways, the timing of this "announcement" is of little direct consequence. FR have been saying this for years (literally - see threads below from right here on FT!). As they say today, they still don't have any aircraft available to them so it would 4-5 years before they could start...
2001: http://www.flyertalk.com/forum/aer-l...ic-routes.html
2007: http://www.flyertalk.com/forum/budge...ntic-08-a.html
2007: http://www.flyertalk.com/forum/budge...-atlantic.html
2007: http://www.flyertalk.com/forum/briti...c-service.html
2007: http://www.flyertalk.com/forum/budge...satlantic.html
2008: http://www.flyertalk.com/forum/budge...s-ryanair.html
2008: http://www.flyertalk.com/forum/budge...lights-us.html
2008: http://www.flyertalk.com/forum/budge...l-flights.html
2014: http://www.flyertalk.com/forum/budge...s-ryanair.html
Mar 16, 2015, 11:44 am
#183
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Ok, while not directly relevant, I think it does increase the stakes. An independent EI is likely to face increased TATL competition from both the various Joint Venture airlines and from FR over the coming years.
While the Irish politicians may believe that EI does not need the IAG deal, EI management must understand the competitive threats on the horizon. Cash will likely be tight as they try to replace the fleet while being attacked on all sides.
I thought this announcement was different in that it is not just one of MOL's rants, but the approval of the FR board to actively develop plans. Also the 5yr timeline mentioned sounds like it is a more serious proposal than previously.
Given the leveling out of growth under the FR historical business model, it makes sense that they need to explore new ways of growing over the longer term.
While the Irish politicians may believe that EI does not need the IAG deal, EI management must understand the competitive threats on the horizon. Cash will likely be tight as they try to replace the fleet while being attacked on all sides.
I thought this announcement was different in that it is not just one of MOL's rants, but the approval of the FR board to actively develop plans. Also the 5yr timeline mentioned sounds like it is a more serious proposal than previously.
Given the leveling out of growth under the FR historical business model, it makes sense that they need to explore new ways of growing over the longer term.
Mar 19, 2015, 3:15 am
#184
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Aer Lingus appears to be unnecessarily rocking the boat, in that it is baiting Ryanair, and doing the opposite of what IAG wants!
Etihad's James Hogan has also indicated his willingness to dispose of his holding to IAG.
Originally Posted by The Irish Independent
In a searing submission to the CMA, Aer Lingus has accused Ryanair of engaging in "wilful misinterpretation and misrepresentation" of the facts in a gambit to prolong a legal battle to prevent the larger airline from being forced to reduce its Aer Lingus stake.
But lawyers for IAG, which is headed by Willie Walsh and owns British Airways and Iberia, have pleaded with the CMA to refrain from appointing an independent trustee to effect the sale of most of Ryanair's stake in Aer Lingus, and instead grant Ryanair permission to sell its entire holding to IAG.
However, the Aer Lingus lawyers have argued for that trustee to begin work immediately, and be empowered to sell the shares owned by Ryanair to IAG, "so preventing the risk of Ryanair impeding the IAG merger".
But lawyers for IAG, which is headed by Willie Walsh and owns British Airways and Iberia, have pleaded with the CMA to refrain from appointing an independent trustee to effect the sale of most of Ryanair's stake in Aer Lingus, and instead grant Ryanair permission to sell its entire holding to IAG.
However, the Aer Lingus lawyers have argued for that trustee to begin work immediately, and be empowered to sell the shares owned by Ryanair to IAG, "so preventing the risk of Ryanair impeding the IAG merger".
Mar 19, 2015, 4:11 pm
#185
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So much for my theory, it seems they have back-tracked and there are no plans to go TATL.
Does make the FR board seem stupid, I thought the board would be more deliberate and considered in their statements
Does make the FR board seem stupid, I thought the board would be more deliberate and considered in their statements
Mar 31, 2015, 6:08 pm
#186
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The Irish Government grinds forward...
http://www.irishtimes.com/news/polit...port-1.2160654
Aer Lingus will not be sold unless “an acceptable price’’ is secured, Minister for Transport Paschal Donohoe has told the Seanad.
Mr Donohoe said many legitimate concerns had been voiced about the International Airlines Group’s proposed offer, and the Government had outlined the details and clarification it needed in that regard.
“The interdepartmental group has continued discussions with IAG,’’ he said. “I have made it clear I wish to see this matter brought to a conclusion within a number of weeks.’’
He said connectivity, including connectivity with the regions, and employment, were exceptionally high among the criteria
[Huffing and puffing from an Independent Senator]
Mr Barrett said he would welcome a decision by BA to enter the Irish market, but not if the price was the acquisition of Aer Lingus
Funny - BA already serves DUB from LHR AND LCY.
I wonder what an acceptable price is - when there are no other credible bidders?
Aer Lingus will not be sold unless “an acceptable price’’ is secured, Minister for Transport Paschal Donohoe has told the Seanad.
Mr Donohoe said many legitimate concerns had been voiced about the International Airlines Group’s proposed offer, and the Government had outlined the details and clarification it needed in that regard.
“The interdepartmental group has continued discussions with IAG,’’ he said. “I have made it clear I wish to see this matter brought to a conclusion within a number of weeks.’’
He said connectivity, including connectivity with the regions, and employment, were exceptionally high among the criteria
[Huffing and puffing from an Independent Senator]
Mr Barrett said he would welcome a decision by BA to enter the Irish market, but not if the price was the acquisition of Aer Lingus
Funny - BA already serves DUB from LHR AND LCY.
I wonder what an acceptable price is - when there are no other credible bidders?
Apr 1, 2015, 5:00 am
#187
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That "Mr. Barrett" appears to be dead set against any EI sale:
I believe he's the senator who, in questioning Willie Walsh during his appearance before the Oireachtas Transport Committee, could barely seem to hide his contempt for, and bitterness towards, IAG, Willie Walsh, and the whole idea of a sale.
In other news - Virgin Atlantic has weighed in - with the European Commission, apparently - and have therefore managed to wangle an invitation to appear in front of said Oireachtas Transport Committee. As Willie Walsh has said in recent days, he's more interested in hearing Irish peoples' opinions, rather than those of Virgin (who have no services to/from Ireland) and the likes of Donald Trump, who also weighed in saying the deal would be bad for Ireland.
Originally Posted by The Irish Independent
History shows ss Aer Lingus sale would be a grave mistake
British Airways has nothing to offer in the development of Irish aviation. I reject the pessimistic view of the Aer Lingus board and management that the airline has no future except as part of British Airways/IAG. The takeover must be rejected so that a new board can plan the future development of Aer Lingus.
British Airways has nothing to offer in the development of Irish aviation. I reject the pessimistic view of the Aer Lingus board and management that the airline has no future except as part of British Airways/IAG. The takeover must be rejected so that a new board can plan the future development of Aer Lingus.
In other news - Virgin Atlantic has weighed in - with the European Commission, apparently - and have therefore managed to wangle an invitation to appear in front of said Oireachtas Transport Committee. As Willie Walsh has said in recent days, he's more interested in hearing Irish peoples' opinions, rather than those of Virgin (who have no services to/from Ireland) and the likes of Donald Trump, who also weighed in saying the deal would be bad for Ireland.
Apr 1, 2015, 2:51 pm
#188
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As Willie Walsh has said in recent days, he's more interested in hearing Irish peoples' opinions, rather than those of Virgin (who have no services to/from Ireland) and the likes of Donald Trump, who also weighed in saying the deal would be bad for Ireland.
And Beardy has had the chance to run a LON-DUB service at anytime in the last 25 years. He hasn't. How did the EI wet lease, erm Little Red work out?
It seems as if every know-all has to be wheeled out before the IAG deal is authorised. Still - Willie is pretty shrewd - as he says in the RTE piece:
Mr Walsh said he would be "delighted" to see Virgin Atlantic granted its request to appear before the Oireachtas Committee.
"It's not unusual for Virgin to see if they can get something out of a process so it didn't surprise me. But I think it would be very interesting for Virgin to appear before the Oireachtas Joint Committee on Transport and explain their interests in the Irish market given that they don't fly here.
"As far as I'm concerned or aware they've never shown any interest in flying to Ireland or in serving the Irish market," he said.
The IAG boss said he was not surprised to hear Donald Trump's comments either.
"He's got a little golf course down at Doonbeg which is very close to Shannon airport. I was looking at the flight paths in and out of Shannon because I think he's taking a legal challenge against an airport near one of his resorts in the US because the aircraft are flying over it," said.
"I've never played the golf course but I believe it's beautiful and maybe I'll get an opportunity to visit there some day".
Mr Walsh also responded to an Irish Times Ipsos/MRBI opinion poll yesterday which suggested 54% of Irish voters believe the Government should not sell the State's shareholding in Aer Lingus.
"Maybe people need to be reminded that the Government sold Aer Lingus a number of years ago. The Government retains a minority stake in the business of just over 25%," he said.
Apr 5, 2015, 4:29 am
#190
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Ooh. Brandslap.
Didn't last long did it?
I assume a log of the huffing and puffing is being driven by i) North Dublin vested interests ii) The left who regard the disposal of a 25% stake as extreme capitalism and iii) Nationalism - Down With This Sort Of Thing.
Didn't last long did it?
I assume a log of the huffing and puffing is being driven by i) North Dublin vested interests ii) The left who regard the disposal of a 25% stake as extreme capitalism and iii) Nationalism - Down With This Sort Of Thing.
Apr 8, 2015, 9:15 am
#191
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Surely the writing is on the wall now? With only Beardie himself (of those actually involved in aviation) turning up his nose...
Originally Posted by The Daily Telegraph
(In an interview with Easyjet CEO, Carolyn McCall)
“Not many things are very clean and tidy, they’re complicated deals,” said McCall. “I would say personally that I think it [Aer Lingus-IAG] should go through, it’s rational consolidation. It’s going to be good for Ireland, it’s going to be good for IAG and it’ll be good for Aer Lingus.”
“Not many things are very clean and tidy, they’re complicated deals,” said McCall. “I would say personally that I think it [Aer Lingus-IAG] should go through, it’s rational consolidation. It’s going to be good for Ireland, it’s going to be good for IAG and it’ll be good for Aer Lingus.”
Originally Posted by The Irish Independent
(in an interview with Qantas CEO, Alan Joyce)
The Irishman who heads up Australian airline Qantas believes that IAG should be allowed to buy Aer Lingus.
The Irishman who heads up Australian airline Qantas believes that IAG should be allowed to buy Aer Lingus.
Originally Posted by Invezz.com
Etihad Airways would be willing to sell its minority stake in Aer Lingus (LON:AERL) if International Consolidated Airlines Group (LON:IAG) is successful in taking over the Irish carrier, the gulf airline’s chief executive has said. The comments come with the British Airways parent currently trying to win Dublin’s backing for the proposed takeover.
Last edited by irishguy28; Apr 8, 2015 at 9:21 am
Apr 8, 2015, 11:15 am
#192
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Apr 16, 2015, 6:12 am
#194
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Apr 16, 2015, 6:25 am
#195
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Beaten to it by BApilotinsider!
Originally Posted by The Irish Independent
A deal to sell Aer Lingus has moved closer as the deadlock of between the Irish government and Willie Walsh's IAG over the Heathrow slots edges towards resolution .
Speaking at an event in Dublin, [Minister for Transport Paschal Donohue] said: "I gave an update to the Cabinet yesterday that discussions are continuing with IAG. I emphasised to my colleagues that this is a matter I want to draw to conclusion soon," he said.
"It has been ongoing for a while, it is a complicated issue which is very important for the development of Aer Lingus and to our country. Whatever decision is made, I want it to be the right one for both and I anticipate that in the coming weeks we will be in a position to do so."
Speaking at an event in Dublin, [Minister for Transport Paschal Donohue] said: "I gave an update to the Cabinet yesterday that discussions are continuing with IAG. I emphasised to my colleagues that this is a matter I want to draw to conclusion soon," he said.
"It has been ongoing for a while, it is a complicated issue which is very important for the development of Aer Lingus and to our country. Whatever decision is made, I want it to be the right one for both and I anticipate that in the coming weeks we will be in a position to do so."