EI - Aer Lingus to operate direct IAD-MAD service from 2010
 

...in codeshare with United, but aircraft and crew will be provided by EI

http://www.google.com/hostednews/ap/...vFwPgD95S9F1O0

United, Aer Lingus boost trans-Atlantic pact

By SHAWN POGATCHNIK – 1 hour ago

DUBLIN, Ireland (AP) — United Airlines and Ireland's Aer Lingus unveiled an agreement Thursday to operate a new joint trans-Atlantic service between Washington, DC and Spain as part of their recent code-sharing deal.

The two airlines said they would launch a shared Washington Dulles-Madrid service beginning in April 2010 and were mulling other possible joint ventures to exploit the year-old "open skies" pact between U.S. and EU aviation authorities.

Since November the two airlines' code-sharing has allowed customers to make linked-up journeys on a single booking within United's American and Aer Lingus' European route networks. Until now, however, the partners had not cooperated in forging any new routes under open skies, which allows airlines to fly from outside their home countries.

United chief executive and chairman Glenn Tilton said in a statement that the success of their code-sharing deal "provides for a deeper commercial relationship with Aer Lingus, and capitalizes on the unique strengths of both our companies."

Aer Lingus chief executive Dermot Mannion told a Dublin press conference he expected cooperation with United to deepen because both sides were benefiting strongly.

Aer Lingus' corporate planning director, Stephen Kavanagh, told The Associated Press that Aer Lingus would provide the crews and aircraft for the Washington-Madrid service — but the bulk of traffic would come from United's U.S. customers. He said the two airlines would split profits and risks equally.

Aer Lingus has never operated a trans-Atlantic service from outside Ireland before. It currently flies from Ireland to New York, Boston, Chicago, Washington and San Francisco, but cut its Los Angeles service last November citing the sky-high cost of fuel.

Kavanagh said Aer Lingus was "actively looking" to expand its own trans-Atlantic services from Ireland once again now that fuel prices have plummeted. He said reviving the Los Angeles route was a leading candidate.

Traditionally, U.S. airlines have favored London's Heathrow for their trans-Atlantic services but increasingly are seeking less crowded, costly and convenient transfer points.

Aer Lingus operates services between Ireland and six major European short-haul hubs: Heathrow, Amsterdam, Frankfurt, Madrid, Paris and Rome. United has other code-sharing partners that operate connecting flights at Madrid.

Thursday's deal comes at a time of unusual uncertainty for Aer Lingus, a formerly state-controlled airline that the Irish government floated on the Irish and British stock exchanges in 2006.

Aer Lingus is embroiled in a renewed takeover battle with Dublin-based rival Ryanair, Europe's No. 1 no-frills carrier, which is already Aer Lingus' biggest shareholder with a 30 percent stake. Ryanair's latest bid, launched last month and due to expire Feb. 13, values Aer Lingus at euro750 million ($975 million) or euro1.40 a share.

Aer Lingus shares were trading 0.8 percent lower Thursday at euro1.37 on the Irish Stock Exchange. This reflected investors' widespread view that the Ryanair bid will fail at that price, because it has attracted virtually no interest from other shareholders.

Earlier Thursday, Ryanair chief executive Michael O'Leary told a Dublin press conference he didn't plan to raise the euro1.40 price on offer and insisted it would be the best that Aer Lingus could hope to get. He forecast that Aer Lingus shares would plunge back below euro1 if Ryanair's overture was spurned.

MAD-IAD
 

Strange arrangement, isn't it? Not so much as new route strategy for Aer Lingus as an extended wet-lease to operated a United route.

Odd.

doomed

[QUOTE=irishguy28;11122557]...in codeshare with United, but aircraft and crew will be provided by EI

http://www.google.com/hostednews/ap/...vFwPgD95S9F1O0

United, Aer Lingus boost trans-Atlantic pact

By SHAWN POGATCHNIK – 1 hour ago

DUBLIN, Ireland (AP) — United Airlines and Ireland's Aer Lingus unveiled an agreement Thursday to operate a new joint trans-Atlantic service between Washington, DC and Spain as part of their recent code-sharing deal.

The two airlines said they would launch a shared Washington Dulles-Madrid service beginning in April 2010 and were mulling other possible joint ventures to exploit the year-old "open skies" pact between U.S. and EU aviation authorities.

Since November the two airlines' code-sharing has allowed customers to make linked-up journeys on a single booking within United's American and Aer Lingus' European route networks. Until now, however, the partners had not cooperated in forging any new routes under open skies, which allows airlines to fly from outside their home countries.

United chief executive and chairman Glenn Tilton said in a statement that the success of their code-sharing deal "provides for a deeper commercial relationship with Aer Lingus, and capitalizes on the unique strengths of both our companies."

Aer Lingus chief executive Dermot Mannion told a Dublin press conference he expected cooperation with United to deepen because both sides were benefiting strongly.

Aer Lingus' corporate planning director, Stephen Kavanagh, told The Associated Press that Aer Lingus would provide the crews and aircraft for the Washington-Madrid service — but the bulk of traffic would come from United's U.S. customers. He said the two airlines would split profits and risks equally.

Aer Lingus has never operated a trans-Atlantic service from outside Ireland before. It currently flies from Ireland to New York, Boston, Chicago, Washington and San Francisco, but cut its Los Angeles service last November citing the sky-high cost of fuel.

Kavanagh said Aer Lingus was "actively looking" to expand its own trans-Atlantic services from Ireland once again now that fuel prices have plummeted. He said reviving the Los Angeles route was a leading candidate.

Traditionally, U.S. airlines have favored London's Heathrow for their trans-Atlantic services but increasingly are seeking less crowded, costly and convenient transfer points.

Aer Lingus operates services between Ireland and six major European short-haul hubs: Heathrow, Amsterdam, Frankfurt, Madrid, Paris and Rome. United has other code-sharing partners that operate connecting flights at Madrid.

Thursday's deal comes at a time of unusual uncertainty for Aer Lingus, a formerly state-controlled airline that the Irish government floated on the Irish and British stock exchanges in 2006.

Aer Lingus is embroiled in a renewed takeover battle with Dublin-based rival Ryanair, Europe's No. 1 no-frills carrier, which is already Aer Lingus' biggest shareholder with a 30 percent stake. Ryanair's latest bid, launched last month and due to expire Feb. 13, values Aer Lingus at euro750 million ($975 million) or euro1.40 a share.

Aer Lingus shares were trading 0.8 percent lower Thursday at euro1.37 on the Irish Stock Exchange. This reflected investors' widespread view that the Ryanair bid will fail at that price, because it has attracted virtually no interest from other shareholders.

Earlier Thursday, Ryanair chief executive Michael O'Leary told a Dublin press conference he didn't plan to raise the euro1.40 price on offer and insisted it would be the best that Aer Lingus could hope to get. He forecast that Aer Lingus shares would plunge back below euro1 if Ryanair's overture was spurned.

Irish crews- well most likely the Pilots, but the FA are going to bear nothing resembling an Irish complexion- sad!

Very odd/confusing development.
a) Why announce so far ahead of time? People will have forgotten this announcement by the time service actually starts.
b) Service to Madrid will be head-to-head with IB, a core OW carrier (with the networking benefits of OW, which are set to expand dramatically) and also anational "flag carrier". Tough sell.
c) Aer Lingus has name recognition in Britain, plus the British regions are in general absymally served in terms of direct TA flights. Consequently it would appear to have been more natural for EI to have gone after MAN-XXX or GLA-XXX traffic. [Though of course they could try and serve these via DUB, which they have never really pursued in any depth.]
d) Who will think of EI as other than an oddity when wanting to travel from US to Spain or vice versa?

Oh dear lord.

I don't understand an important point about this plan - the fleet utilization aspect. I believe EI has 3 A330-200 planes - with one on order, but also retiring one, so the net number will stay as three. Now, it has been posted that these three planes will be the ones devoted to the new IAD-MAD venture. Key question, is what planes does EI then have to serve the US west coast - none as far as I can tell!! i.e. I don't believe the other L/H aircraft, the A330-300 planes, have the range to serve SFO and/or LAX?

I actually thought EI may have picked up the MAN-ORD route from BD, as with their new UA deal it would go well with all UA connections out of ORD

That would have made some semblence of sense..but anyway

Mannion has been quoted in one piece of coverage I read as saying that EI have some flexibility in terms of returning aircraft back to their lessor so some of the older planes don't have to go out as originally scheduled.

This would make more sense. I can not see MAD-IAD on EI ever getting off the ground. By 2010, MOL may be in charge at EI. He is a lot closer to taking over than this time last year.

Ryanair's offer has been rejected by the Irish government and it is unlikely that Ryanair will raise their offer. So EI remains an independent entity for the time being.

And MOL may no longer be running Ryanair in 2010, if his oft-reported quote of a few years ago to retire in 2008/9 really is true.

The government rejected €1.40 per share on Thursday, Friday the share price was down 13% to €1.18. TATL traffic between the US and IE will be soft this year, with leisure travelers not spending and business cutbacks. By the end of the summer the offer most likely will be less. Two years ago FR were offering €2.80 per share. MOL is 47, a takeover of EI would be to him, his greatest achievement. FR are not going away.

http://www.rte.ie/business/2006/1215/ryanair.html

This is a man that bought a taxi license, so that he could travel in the bus lane and beat the traffic.

http://www.guardian.co.uk/environmen...try.travelnews

Duplicate post.

I really don't know what to make of this announcement. UA to buy EI? EI to join *A? UA to stop paying for expensive airplanes and let an operator with lower costs do the work?

Interesting that LAX is high on the list for "revival". I had understood that it was just a winter timetable issue brought about by high fuel costs and the fact that EI should be rotating the fleet out one by one for a refit. Seems like they didn't expect to restart the service.

who will earn miles on this service? EI & UA card holders I assume, but what about other *A member card holders? any thoughts?