IAG, British Airways & Niki
Dec 28, 2017, 9:44 am
#16
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Dec 28, 2017, 4:39 pm
#17
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If IAG buys Niki it will get a hold of central Europe market and the crown jewel the German market with slots at congested airport such as WIE, TXL and DUS. Oneworld will have access again to the entire continent.
Dec 28, 2017, 6:13 pm
#19
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While loving the idea of a OneWorld presence in central Europe again, I would not welcome that expansion of the Vueling brand. LH would love it and walk all over them. At least LH gives you a semblance of legroom, a drink, a snack and a punctual arrival. Vueling gives you none of those.
Dec 29, 2017, 4:24 am
#20
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While loving the idea of a OneWorld presence in central Europe again, I would not welcome that expansion of the Vueling brand. LH would love it and walk all over them. At least LH gives you a semblance of legroom, a drink, a snack and a punctual arrival. Vueling gives you none of those.
Last edited by kanderson1965; Dec 29, 2017 at 5:05 pm
Dec 29, 2017, 4:33 am
#21
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While loving the idea of a OneWorld presence in central Europe again, I would not welcome that expansion of the Vueling brand. LH would love it and walk all over them. At least LH gives you a semblance of legroom, a drink, a snack and a punctual arrival. Vueling gives you none of those.
Dec 29, 2017, 6:04 am
#22
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The key question here has little to do with snacks and legroom, the heart of the matter is why is IAG doing this? The answer to my mind is that they want a backdoor route into Europe's second largest aviation market where they are currently under-represented. IAG have the biggest and third largest European markets pretty much sewn up. What model would suit them best? Bear in mind VY already have some footprint in DACH, I would have thought maintaining the Niki brand in the style of Aer Lingus the more likely outcome.
Dec 29, 2017, 8:33 am
#23
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The key question here has little to do with snacks and legroom, the heart of the matter is why is IAG doing this? The answer to my mind is that they want a backdoor route into Europe's second largest aviation market where they are currently under-represented. IAG have the biggest and third largest European markets pretty much sewn up. What model would suit them best? Bear in mind VY already have some footprint in DACH, I would have thought maintaining the Niki brand in the style of Aer Lingus the more likely outcome.
Dec 29, 2017, 1:26 pm
#24
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Dec 29, 2017, 1:45 pm
#25
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Beeing the only bidder has advantages, of course. According to German Business papers, price was said to be 40 M €, so looks considerably cheaper, but the additional liquidity provided is almost equally large.
OK, future will show what role this new IAG member will have. Personally I hope they will make it OW member, covering the white spot left by AB, to cover Eastern Europe.
OK, future will show what role this new IAG member will have. Personally I hope they will make it OW member, covering the white spot left by AB, to cover Eastern Europe.
Dec 29, 2017, 2:04 pm
#26
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There are some more specifics here on the FT's website (paywall), an extract below:
https://www.ft.com/content/358464e8-...3-513b1d7ca85a
Elsewhere it is reported that Vueling will set up a separate, Austrian incorporated 100% owned subsidiary, and will be run separately from Vueling at least initially.
https://www.ft.com/content/358464e8-...3-513b1d7ca85a
Peggy Hollinger, Industry Editor
British Airways’ parent, International Consolidated Airlines (IAG), is paying a total of €36.5m to acquire Niki, the insolvent Austrian airline, after Germany’s Lufthansa pulled out because of competition concerns. IAG beat interest from other potential bidders with a bid of €20m to acquire the carrier and up to 15 Airbus A320 family single-aisle aircraft, as well as a portfolio of take-off and landing slots at airports, including Vienna, Düsseldorf, Munich, Palma and Zurich. IAG said it would also inject a further €16.5m to provide the carrier with liquidity.
The new company, to be a subsidiary of IAG’s low-cost carrier Vueling, will employ about 740 former Niki employees to run the operation. Willie Walsh, IAG chief executive, said: “Niki was the most financially viable part of Air Berlin and its focus on leisure travel means it’s a great fit with Vueling. This deal will enable Vueling to increase its presence in Austria, Germany and Switzerland and provide the region’s consumers with more choice of low-cost air travel.”
British Airways’ parent, International Consolidated Airlines (IAG), is paying a total of €36.5m to acquire Niki, the insolvent Austrian airline, after Germany’s Lufthansa pulled out because of competition concerns. IAG beat interest from other potential bidders with a bid of €20m to acquire the carrier and up to 15 Airbus A320 family single-aisle aircraft, as well as a portfolio of take-off and landing slots at airports, including Vienna, Düsseldorf, Munich, Palma and Zurich. IAG said it would also inject a further €16.5m to provide the carrier with liquidity.
The new company, to be a subsidiary of IAG’s low-cost carrier Vueling, will employ about 740 former Niki employees to run the operation. Willie Walsh, IAG chief executive, said: “Niki was the most financially viable part of Air Berlin and its focus on leisure travel means it’s a great fit with Vueling. This deal will enable Vueling to increase its presence in Austria, Germany and Switzerland and provide the region’s consumers with more choice of low-cost air travel.”
Dec 29, 2017, 2:57 pm
#27
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The 15 aircraft makes more sense, but I suppose those are retained on a lease otherwise it looks like an incredible price given the going rate for an A320.
What also makes sense in not repeating the mistakes of BA Deutschland, another LCC is probably the safer business model. Will be interesting to follow hoe this evolves with Level.
What also makes sense in not repeating the mistakes of BA Deutschland, another LCC is probably the safer business model. Will be interesting to follow hoe this evolves with Level.
Dec 29, 2017, 4:34 pm
#29
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Dec 30, 2017, 4:57 am
#30
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