Aer Lingus has 'no plans' to rejoin oneworld [proposes entering JV with AA/BA etc]
Nov 16, 2017, 1:56 pm
#1
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Aer Lingus has 'no plans' to rejoin oneworld [proposes entering JV with AA/BA etc]
I came across a very interesting article this morning which appears to contradict the noises from Willie Walsh when IAG purchased Aer Lingus.
'Aer Lingus has "no plans" to rejoin the Oneworld global airline alliance, CEO Stephen Kavanagh has said. ... However, Mr Kavanagh said that Aer Lingus continues to work towards joining the existing alliance between British Airways and American Airlines.
"We believe… that we can bring more choice to the market place and grow in connected businesses without compromising any of our existing businesses or the consumer," he said. "We're about building cost efficiency and capacity."'
I thought it strange there was no mention of EI joining oneworld in the recent IAG Capital Markets Day presentation, now we know why.
Source: https://www.independent.ie/business/...-36320589.html
'Aer Lingus has "no plans" to rejoin the Oneworld global airline alliance, CEO Stephen Kavanagh has said. ... However, Mr Kavanagh said that Aer Lingus continues to work towards joining the existing alliance between British Airways and American Airlines.
"We believe… that we can bring more choice to the market place and grow in connected businesses without compromising any of our existing businesses or the consumer," he said. "We're about building cost efficiency and capacity."'
I thought it strange there was no mention of EI joining oneworld in the recent IAG Capital Markets Day presentation, now we know why.
Source: https://www.independent.ie/business/...-36320589.html
Nov 16, 2017, 2:09 pm
#2
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By the 'existing alliance between BA and AA' I wonder if they mean the JV (but if so it also includes IB and AY)? It's disappointing and I hope there is another way through which EI flights will be made to count towards status qualification on BAEC and get full lounge access rights.
Nov 16, 2017, 2:13 pm
#3
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Yes @orbitmic, I too read that to be a reference to the JV. This is very disappointing news, if it has been reported correctly.
USA Today has this:
'Now, however, Aer Lingus' appears to have put oneworld membership on the back burner while it instead prioritizes entering into the trans-Atlantic joint-venture partnership currently in place between American, British Airways, Iberia and Finnair.
The joint venture allows those carriers to closely coordinate schedules, sell seats and share revenue on each other’s flights across the Atlantic. Typically, reciprocal frequent-flier benefits are offered as well, which presumably would extend to Aer Lingus if it becomes part of the joint-venture set-up.
"Aer Lingus has been focused on joining the transatlantic joint business," IAG said in a statement to Today in the Sky on Wednesday. "These processes take time and at this stage the airline hasn’t developed a detailed business case on oneworld given its priority for joint business entry."'
ISource: https://www.usatoday.com/story/trave...rld/865526001/
USA Today has this:
'Now, however, Aer Lingus' appears to have put oneworld membership on the back burner while it instead prioritizes entering into the trans-Atlantic joint-venture partnership currently in place between American, British Airways, Iberia and Finnair.
The joint venture allows those carriers to closely coordinate schedules, sell seats and share revenue on each other’s flights across the Atlantic. Typically, reciprocal frequent-flier benefits are offered as well, which presumably would extend to Aer Lingus if it becomes part of the joint-venture set-up.
"Aer Lingus has been focused on joining the transatlantic joint business," IAG said in a statement to Today in the Sky on Wednesday. "These processes take time and at this stage the airline hasn’t developed a detailed business case on oneworld given its priority for joint business entry."'
ISource: https://www.usatoday.com/story/trave...rld/865526001/
Nov 16, 2017, 4:30 pm
#5
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The wording used by EI's CEO was explicit "no plans". Willie Walsh had previously stated EI would join oneworld (likely in 2017 or early 2018) but if there are no plans that clearly isn't going to happen any time soon. It appears strategy/focus has changed at EI/IAG.
Nov 16, 2017, 9:28 pm
#6
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We have given up all hope at this stage...
It is not clear why there are no reciprocal arrangements in place yet, at least with BA.
Apparently (re-)joining OW is also a prerequisite for joining the JV. Completely confused.
Nov 16, 2017, 9:56 pm
#7
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Didn't Walsh a few years ago state that he thought airline alliances were on the way out and the future lay in JVs and bilateral agreements?
https://airwaysmag.com/industry/emirates-iag-ceos-question-future-airline-alliances/
Predicted airline alliances would not be around in the future.
https://airwaysmag.com/industry/emirates-iag-ceos-question-future-airline-alliances/
Predicted airline alliances would not be around in the future.
Nov 16, 2017, 10:07 pm
#8
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When will EI become a full member of Oneworld?
We have given up all hope at this stage...
It is not clear why there are no reciprocal arrangements in place yet, at least with BA.
Apparently (re-)joining OW is also a prerequisite for joining the JV. Completely confused.
We have given up all hope at this stage...
It is not clear why there are no reciprocal arrangements in place yet, at least with BA.
Apparently (re-)joining OW is also a prerequisite for joining the JV. Completely confused.
Nov 16, 2017, 10:12 pm
#9
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I guess that the costs of joining OW far exceeds the benefits for AI if they join the JV.
They could still get into some "partnership" for the FFP as suggested below, but I do not know what this will mean:
https://www.ausbt.com.au/aer-lingus-...-join-oneworld
They could still get into some "partnership" for the FFP as suggested below, but I do not know what this will mean:
https://www.ausbt.com.au/aer-lingus-...-join-oneworld
Nov 16, 2017, 11:00 pm
#10
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I guess that the costs of joining OW far exceeds the benefits for AI if they join the JV.
They could still get into some "partnership" for the FFP as suggested below, but I do not know what this will mean:
https://www.ausbt.com.au/aer-lingus-...-join-oneworld
They could still get into some "partnership" for the FFP as suggested below, but I do not know what this will mean:
https://www.ausbt.com.au/aer-lingus-...-join-oneworld
Nov 17, 2017, 12:21 am
#11
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We have "no plans" for Brexit but are still pressing on with it (allegedly).
All just words - there are no plans until there are plans. However as the CEO says, cost is a key factor so if joining OW would push that up they may not be interested.
All just words - there are no plans until there are plans. However as the CEO says, cost is a key factor so if joining OW would push that up they may not be interested.
Nov 17, 2017, 1:52 am
#12
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S Kavanagh on the local radio this morning announcing the new Dublin-Seattle route stated that the "airline has never been more profitable." With more transatlantic routes than ever and good LF's maybe the urgency has gone out of OW and JV entry as not being in them does not seem a barrier to growth at the moment. When the fleet is expanded with the A321-NEO's maybe the uplift from OW will be more important then. I also imagine the fact that AerClub functionality is still struggling and that there is no time plan in place to allow capture earnings on partner airlines they are probably a long way off having the FFP functionality that would be required by OW.
Nov 17, 2017, 3:41 am
#13
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Didn't Walsh a few years ago state that he thought airline alliances were on the way out and the future lay in JVs and bilateral agreements?
https://airwaysmag.com/industry/emirates-iag-ceos-question-future-airline-alliances/
Predicted airline alliances would not be around in the future.
https://airwaysmag.com/industry/emirates-iag-ceos-question-future-airline-alliances/
Predicted airline alliances would not be around in the future.
Nov 17, 2017, 3:56 am
#14
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I thought it strange there was no mention of EI joining oneworld in the recent IAG Capital Markets Day presentation, now we know why.
Source: https://www.independent.ie/business/...-36320589.html
Source: https://www.independent.ie/business/...-36320589.html
His expression of desire to enter the JV, however, means that EI *has* to join the alliance. The anti-trust immunity is only granted to members of the alliance, so alliance membership is (currently) a pre-requisite for participation in the JV.
(If EI could fully participate in the JV without the need to go through oneworld, you can be pretty sure that they would already be co-operating/participitating in this manner).
