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]
Sep 18, 2015, 8:08 am
#331
Join Date: Mar 2011
Location: Tyrone,EU
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They are obliged to keep EI as its own identity. So this'll mean maintaining the Aer lingus website. I imagine they will use the Iberia model as the basis. In Iberia, you have a pot of Avios, which is distinct from your BA pot of Avios. You can move Avios between the different pots.
Booking an Iberia award on BA.com can cost significantly different amounts of Avios and fees than the exact same flight does on Iberia.com.
One assumes that somewhere down the line, IAG will get a single redemption engine in place that will behave pretty much identically regardless of the website being used, but that could be a long way away.
Sep 21, 2015, 1:56 am
#332
Join Date: May 2013
Location: MAD
Programs: IB+, BAEC
Posts: 3,106
As an IB flyer based in Madrid. I just hope that day never comes. I quite like the current arrangement.
Sep 21, 2015, 3:16 am
#334
Join Date: Jan 2014
Location: EIDW
Programs: Aer Lingus Concierge, Radisson Rewards Platinum, BW Diamond, Hilton Gold
Posts: 1,968
The old tier relationship was
Gold = Ruby
Prestige = Sapphire
Elite = Emerald
Aer Lingus is extremely generous to offer lounge access at Gold level, the equivalent BA Bronze doesn't
Sep 21, 2015, 3:18 am
#335
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Join Date: Mar 2008
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Oneworld has 3 tiers of status - Ruby, Sapphire and Emerald.
That would seem to imply that EI Gold would map to oneworld Ruby; meaning you have access to EI lounges, but not to lounges on any other oneworld partner.
But bear in mind that EI are changing Gold Circle; a new programme should be unveiled next year.
Sep 22, 2015, 4:47 am
#336
Join Date: Sep 2015
Location: EIDW
Programs: EI Gold
Posts: 44
@ROKNA & irishguy28 - thanks for your reply.
I was thinking about that in terms of EI's lowest tier providing lounge access in comparison to BA, and wondering if the GC revamp will change tiers with a new lower tier not providing lounge access.
I would imagine if the current 2,400 point threshold for GC membership became a BA Bronze style tier, and in the absence of point accumulation changes in a new system, the GC lounges in DUB and LHR for example would be pretty empty.
From my experience, it's pretty difficult to get any higher than GC Gold unless you're flying TATL regularly.
I was thinking about that in terms of EI's lowest tier providing lounge access in comparison to BA, and wondering if the GC revamp will change tiers with a new lower tier not providing lounge access.
I would imagine if the current 2,400 point threshold for GC membership became a BA Bronze style tier, and in the absence of point accumulation changes in a new system, the GC lounges in DUB and LHR for example would be pretty empty.
From my experience, it's pretty difficult to get any higher than GC Gold unless you're flying TATL regularly.
Sep 22, 2015, 6:40 am
#337
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Cost cutting
I wonder what's left to cut?
I don't have a subscription so that's as much as I can read...
Originally Posted by ATWOnline
Aer Lingus’ welcome party into International Airlines Group (IAG) will be “all about cost reduction,” according to Vueling CEO Alex Cruz. Cruz, who runs IAG’s Spanish low-cost carrier Vueling, said the acquisition is still very fresh. “It’s only just arrived; it’s literally just two or three weeks since deal was done,” he said, during the keynote interview at the World Low Cost Airlines Congress (WLCAC) in London on Sept. 15.
Sep 22, 2015, 1:26 pm
#339
Join Date: Aug 2010
Location: Naas at the weekend and FRA during the working week
Programs: EI Aer Club Concierge , BAEC Silver, Tesco clubcard
Posts: 409
@ROKNA & irishguy28 - thanks for your reply.
I was thinking about that in terms of EI's lowest tier providing lounge access in comparison to BA, and wondering if the GC revamp will change tiers with a new lower tier not providing lounge access.
I would imagine if the current 2,400 point threshold for GC membership became a BA Bronze style tier, and in the absence of point accumulation changes in a new system, the GC lounges in DUB and LHR for example would be pretty empty.
From my experience, it's pretty difficult to get any higher than GC Gold unless you're flying TATL regularly.
I was thinking about that in terms of EI's lowest tier providing lounge access in comparison to BA, and wondering if the GC revamp will change tiers with a new lower tier not providing lounge access.
I would imagine if the current 2,400 point threshold for GC membership became a BA Bronze style tier, and in the absence of point accumulation changes in a new system, the GC lounges in DUB and LHR for example would be pretty empty.
From my experience, it's pretty difficult to get any higher than GC Gold unless you're flying TATL regularly.
Sep 23, 2015, 4:35 am
#342
Join Date: Sep 2014
Location: Brexile in ADB
Programs: BA, TK, HHonours, Le Club, Best Western Rewards
Posts: 7,067
And don't forget the sizable discounts which IAG will get for it's aircraft when they buy in bulk, especially the larger aircraft like the A350.
Sep 23, 2015, 6:13 am
#343
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Location: Netherlands
Programs: KL Platinum; A3 Gold
Posts: 28,730
Indeed, there are opportunities for such synergistic cost savings going forward; but there will still be cost cutting within Aer Lingus in parallel to all of that.
Originally Posted by The Irish Independent
Aer Lingus is also planning bigger than anticipated cost cuts once the IAG deal is complete. Eighteen months ago, Aer Lingus set a target to achieve annualised savings of €40m by the end of 2016.
"Our ambition is to beat the €40m target independent of an IAG transaction, because we deem it to be necessary," said Mr Kavanagh.
"We're confident we can exceed that €40m. But obviously the opportunity that IAG brings allows us to have far more ambitious targets from a cost reduction perspective."
"Our ambition is to beat the €40m target independent of an IAG transaction, because we deem it to be necessary," said Mr Kavanagh.
"We're confident we can exceed that €40m. But obviously the opportunity that IAG brings allows us to have far more ambitious targets from a cost reduction perspective."
Sep 23, 2015, 11:53 am
#344
Original Poster
Join Date: Jun 2006
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Oct 28, 2015, 4:55 am
#345
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