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]
Jan 31, 2015, 8:33 am
#91
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Indeed...the deal may appear to be off but that is only because just one side has had its say so far.
I don't think any other potential bidder would preserve the nature and brand of EI as well as IAG would. And the Heathrow slots would be in far greater danger should anyone else - ie an airline/group with even fewer slots than EI holds - take them over. (Ryanair had come up with a remedy that involved selling most of EI's slots in an attempt to gain clearance for a takeover. That shows just how ridiculous Ryanair's vision for Aer Lingus was).
In short, if IAG are rebuffed, then it's hard to see what other group would want to deal with Aer Lingus - or rather, with the Government.
Of course, Ryanair could sell to anyone who could then attempt a takeover, leaving the government in a minority.
IAG could even pounce, in the future, after being rebuffed by the government, buy out FR and other investors for a song (the share price will dive after IAG are rebuffed), and then have a controlling stake and no obligation to follow any of the promises currently on the table.
This story is not quite over yet!
I don't think any other potential bidder would preserve the nature and brand of EI as well as IAG would. And the Heathrow slots would be in far greater danger should anyone else - ie an airline/group with even fewer slots than EI holds - take them over. (Ryanair had come up with a remedy that involved selling most of EI's slots in an attempt to gain clearance for a takeover. That shows just how ridiculous Ryanair's vision for Aer Lingus was).
In short, if IAG are rebuffed, then it's hard to see what other group would want to deal with Aer Lingus - or rather, with the Government.
Of course, Ryanair could sell to anyone who could then attempt a takeover, leaving the government in a minority.
IAG could even pounce, in the future, after being rebuffed by the government, buy out FR and other investors for a song (the share price will dive after IAG are rebuffed), and then have a controlling stake and no obligation to follow any of the promises currently on the table.
This story is not quite over yet!
Last edited by irishguy28; Jan 31, 2015 at 8:47 am
Jan 31, 2015, 8:48 am
#92
Join Date: Mar 2002
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Thread on 'What's Next' has been merged in to this master thread, as it is all part of the same evolving story.
GoldCircle
Aer Lingus Forum Mod team
GoldCircle
Aer Lingus Forum Mod team
Jan 31, 2015, 9:42 am
#93
Join Date: Nov 2014
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Indeed...the deal may appear to be off but that is only because just one side has had its say so far.
I don't think any other potential bidder would preserve the nature and brand of EI as well as IAG would. And the Heathrow slots would be in far greater danger should anyone else - ie an airline/group with even fewer slots than EI holds - take them over. (Ryanair had come up with a remedy that involved selling most of EI's slots in an attempt to gain clearance for a takeover. That shows just how ridiculous Ryanair's vision for Aer Lingus was).
In short, if IAG are rebuffed, then it's hard to see what other group would want to deal with Aer Lingus - or rather, with the Government.
Of course, Ryanair could sell to anyone who could then attempt a takeover, leaving the government in a minority.
IAG could even pounce, in the future, after being rebuffed by the government, buy out FR and other investors for a song (the share price will dive after IAG are rebuffed), and then have a controlling stake and no obligation to follow any of the promises currently on the table.
This story is not quite over yet!
I don't think any other potential bidder would preserve the nature and brand of EI as well as IAG would. And the Heathrow slots would be in far greater danger should anyone else - ie an airline/group with even fewer slots than EI holds - take them over. (Ryanair had come up with a remedy that involved selling most of EI's slots in an attempt to gain clearance for a takeover. That shows just how ridiculous Ryanair's vision for Aer Lingus was).
In short, if IAG are rebuffed, then it's hard to see what other group would want to deal with Aer Lingus - or rather, with the Government.
Of course, Ryanair could sell to anyone who could then attempt a takeover, leaving the government in a minority.
IAG could even pounce, in the future, after being rebuffed by the government, buy out FR and other investors for a song (the share price will dive after IAG are rebuffed), and then have a controlling stake and no obligation to follow any of the promises currently on the table.
This story is not quite over yet!
No matter what happens, the plot thickens...
Jan 31, 2015, 10:35 am
#94
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The politics around this are toxic.
I hadn't realised that all DUB - USA services HAD to stop at SNN until 1990 - and then 50% stopping there until comparatively recently.
Parish pump politics at its worse. Hard for Ireland to compete with DUB as a hub (which it should do - remember that the population of Birmingham alone is over a million - and it has no air connectivity to London) when you have rampant begrudgery driving government policy.
I hadn't realised that all DUB - USA services HAD to stop at SNN until 1990 - and then 50% stopping there until comparatively recently.
Parish pump politics at its worse. Hard for Ireland to compete with DUB as a hub (which it should do - remember that the population of Birmingham alone is over a million - and it has no air connectivity to London) when you have rampant begrudgery driving government policy.
Jan 31, 2015, 10:46 am
#95
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Aer Lingus IAG take over bid [Master Thread]
So if the small minds in Leinster House do manage to put the mockers on this deal, it will be interesting to see if EI move forward with IAG in some other manner, eg expanded code sharing, reentry into Oneworld, etc. Something along those lines might make sense for both sides.
Jan 31, 2015, 5:01 pm
#96
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It would appear that IAG are keen to grow Aer Lingus' transatlantic business. With BA and Iberia potentially driving additional connecting traffic to Dublin, along with Aer Lingus' own growing connecting numbers, there is even scope for brand new routes to be opened from Dublin - perhaps even to cities that currently are not served by BA or IB.
I'm not sure there would be much reconfiguration of "route structures", particularly on the part of BA. Probably the route that would change the most is Dublin to Heathrow - there is likely to be some rationalisation of services there. I would hope that the majority of Aer Lingus' shorthaul network is maintained.
I can't see the longhaul network being radically changed at all - when the planes can be sourced, I can only see them growing the long-haul network from Dublin.
I'm not sure there would be much reconfiguration of "route structures", particularly on the part of BA. Probably the route that would change the most is Dublin to Heathrow - there is likely to be some rationalisation of services there. I would hope that the majority of Aer Lingus' shorthaul network is maintained.
I can't see the longhaul network being radically changed at all - when the planes can be sourced, I can only see them growing the long-haul network from Dublin.
As/when it does go through, there are some interesting possibilities with respect to route structure. I could see DUB as kind of a 'reliever' hub for LHR, operating to many non-OW hub and secondary US cities (in due course perhaps with the new LR A321, much as US carriers do now with the 757), offering one-stop connections to the UK and continental Europe without going through LHR.
Feb 1, 2015, 5:51 am
#97
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I for one, am very concerned about maintaining the "connectivity" to LHR & feel it would be disastrous not to have access to LHR in order to connect onwards "to the world". The amount of passengers on the EI flights to LHR, that are "connecting" always amazes me, so I'm obviously not the only one who goes to LHR to "get on the worldwide network" that flies out of there.
I don't see any other way of getting to Heathrow, certainly not if you're based at ORK or SNN, without those EI flights, so I'm very worried about retaining those Heathrow slots. But I would like to understand those with the point of view that "maintaing connectivity" is not something important & something from another decade !
Feb 1, 2015, 6:50 am
#98
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Gone are the days LHR was central for connectivity. In my experience many of my colleagues avoid LHR like the plague (hassle of changing terminals, obnoxious security and in most cases higher fares to fly via LHR).
If, and that is a big if, BA was to reduce LHR flights you can be sure that many of these other carriers will increase their capacity to take the traffic.
Feb 1, 2015, 9:25 am
#100
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So if the small minds in Leinster House do manage to put the mockers on this deal, it will be interesting to see if EI move forward with IAG in some other manner, eg expanded code sharing, reentry into Oneworld, etc. Something along those lines might make sense for both sides.
That said - IAG could perhaps come back and pursue a new takeover without working with the Government. It was stated on the News At One today that the government would be unable to defend the Heathrow slots in such a scenario.
Feb 1, 2015, 9:29 am
#101
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Feb 1, 2015, 3:06 pm
#102
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Feb 1, 2015, 3:21 pm
#103
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Could you clarify on that point......
I for one, am very concerned about maintaining the "connectivity" to LHR & feel it would be disastrous not to have access to LHR in order to connect onwards "to the world". The amount of passengers on the EI flights to LHR, that are "connecting" always amazes me, so I'm obviously not the only one who goes to LHR to "get on the worldwide network" that flies out of there.
I don't see any other way of getting to Heathrow, certainly not if you're based at ORK or SNN, without those EI flights, so I'm very worried about retaining those Heathrow slots. But I would like to understand those with the point of view that "maintaing connectivity" is not something important & something from another decade !
I for one, am very concerned about maintaining the "connectivity" to LHR & feel it would be disastrous not to have access to LHR in order to connect onwards "to the world". The amount of passengers on the EI flights to LHR, that are "connecting" always amazes me, so I'm obviously not the only one who goes to LHR to "get on the worldwide network" that flies out of there.
I don't see any other way of getting to Heathrow, certainly not if you're based at ORK or SNN, without those EI flights, so I'm very worried about retaining those Heathrow slots. But I would like to understand those with the point of view that "maintaing connectivity" is not something important & something from another decade !
Feb 2, 2015, 6:32 am
#104
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In favor!
I, for one, would love to see EI back in one world. I have no problem with the brand, and FAR prefer EI to FR. I live north of Belfast (which also splits LHR between EI and BA), and still drive to Dublin for the excellent pre clearance. My regret, AA has pretty well left Dublin for US, an altogether worse product, and I cant, OK will not, use EI outside of O*. The faster the better.
I, for one, would love to see EI back in one world. I have no problem with the brand, and FAR prefer EI to FR. I live north of Belfast (which also splits LHR between EI and BA), and still drive to Dublin for the excellent pre clearance. My regret, AA has pretty well left Dublin for US, an altogether worse product, and I cant, OK will not, use EI outside of O*. The faster the better.