IAG, British Airways & Niki
Jan 3, 2018, 10:51 am
#46
Join Date: Oct 2006
Location: Brighton, UK
Programs: BA Gold, IC Ambassador, HH Gold, SPG Gold, Fairmont Platinum
Posts: 3,166
Vueling is not that bad actually, I have flown them a few times this year on routes BA/IB don't fly and if you pay for priority checkin and boarding and an extra leg room seat it is very pleasant, and with Priority Pass for lounge access it is no different to flying BA shorthaul in Economy.
Where I would like IAG to take a leaf out of LH's book (and that of other other carriers with LCC subsidiaries/associated airlines too) would be (1) to offer Avios and TP/equivalent earning on all IAG flights across all IAG FFPs, (2) to allow spend of Avios across all FFPs, and (3) to extend applicable status benefits across all IAG airlines - while not all IAG airlines offer the same benefits, most offer some form of priority check-in/boarding/seat selection pax with status in their own programme. Extending status benefits in this way would cost IAG very little (maybe some lounge access costs at third party lounges, though they could exclude third party lounge access with other IAG-group FFPs), but would drive some sales to IAG airlines and increase customer loyalty.
Implementing these changes would also make things less confusing for passengers. At the moment flying on VY or IB and trying to earn BA Avios, or vice versa, is complex when it should be simple. At the moment with BA as my main programme, I am incentivised to fly on another OW airline if BA do not fly the route need, but there is little incentive to book VY, EI or Level if I need on a route not flown by BA or IB. If I want to earn Avios or TP flying with VY it gets complicated (book flight on BA site, then access on VY site to pay for seat selection and priority checkin etc).
If VY/a subsidiary is going to operate in Germany/Austria/Eastern Europe, at the moment there is more incentive for my to fly LH group and earn on *A and receive *A status benefits, however this could change if IAG offer earning, burning and status benefits across IAG.
Where I would like IAG to take a leaf out of LH's book (and that of other other carriers with LCC subsidiaries/associated airlines too) would be (1) to offer Avios and TP/equivalent earning on all IAG flights across all IAG FFPs, (2) to allow spend of Avios across all FFPs, and (3) to extend applicable status benefits across all IAG airlines - while not all IAG airlines offer the same benefits, most offer some form of priority check-in/boarding/seat selection pax with status in their own programme. Extending status benefits in this way would cost IAG very little (maybe some lounge access costs at third party lounges, though they could exclude third party lounge access with other IAG-group FFPs), but would drive some sales to IAG airlines and increase customer loyalty.
Implementing these changes would also make things less confusing for passengers. At the moment flying on VY or IB and trying to earn BA Avios, or vice versa, is complex when it should be simple. At the moment with BA as my main programme, I am incentivised to fly on another OW airline if BA do not fly the route need, but there is little incentive to book VY, EI or Level if I need on a route not flown by BA or IB. If I want to earn Avios or TP flying with VY it gets complicated (book flight on BA site, then access on VY site to pay for seat selection and priority checkin etc).
If VY/a subsidiary is going to operate in Germany/Austria/Eastern Europe, at the moment there is more incentive for my to fly LH group and earn on *A and receive *A status benefits, however this could change if IAG offer earning, burning and status benefits across IAG.
I suspect IAG have sound business reasons for this. Lounge access is far from cost free in ones own lounges, never mind third party offerings, which presumably need to be acquired solely for status pax on exclusively VY routes. A status passenger in an F lounge could get through far more than the ticket’s cost in JW Blue and Champagne. Whether or not offering status benefits might drum up extra business is quite academic if you believe you will lose money on that business.
So I tend to feel, although extending status benefits across all IAG carriers would be nice, I would struggle to argue a business case for it.
Jan 3, 2018, 11:10 am
#47
Join Date: Oct 2012
Location: Helvetia
Programs: AS; BA Silver; UA; HH Gold; Sprüngli Connaisseur
Posts: 2,912
Jan 3, 2018, 12:43 pm
#48
Moderator, Iberia Airlines, Airport Lounges, and Ambassador, British Airways Executive Club
Join Date: Feb 2010
Programs: BA Lifetime Gold; Flying Blue Life Platinum; LH Sen.; Hilton Diamond; Kemal Kebabs Prized Customer
Posts: 63,822
- Club Vueling (Vueling on Avios.com)
- Aer Club (Aer Lingus on Avios.com)
- Avios Travel Rewards Programme (the UK scheme)
My own view is that if you are doing more than a few flights on Vueling you best set up a Club Vueling account. Even if for no other reason that it's another transfer route for Avios transfer between airlines, when one route goes down. Also the email system gives advanced warning of deals and special offers, including targeted Avios bonuses. A similar argument can be made for travel on Aer Lingus, not least because many fares earn Avios on EI but not on BA. If a UK resident then and serious about all of this you are probably going to want all three plus of course Iberia Plus, the latter up and working fully.
Jan 8, 2018, 9:43 am
#49
Join Date: Sep 2014
Location: Brexile in ADB
Programs: BA, TK, HHonours, Le Club, Best Western Rewards
Posts: 7,067
A German court has agreed to allow insolvency proceedings to move to Austria for Niki. This could further complicate the deal and may end up scuppering it.
Jan 23, 2018, 2:05 am
#50
Join Date: Apr 2015
Programs: Some
Posts: 5,254
Looks like this is over:
Acquisition
RNS Number : 6328C
International Cons Airlines Group
23 January 2018
INTERNATIONAL AIRLINES GROUP UNSUCCESSFUL IN NIKI ASSETS BID
International Airlines Group (IAG) announced on December 29, 2017 that it had agreed to buy assets of the Austrian airline NIKI under the German insolvency process, subject to customary closing conditions.
On January 12, 2018 NIKI insolvency proceedings opened in Austria initiating a new sales process. IAG resubmitted its bid on January 19, 2018 and has been advised today that the bid was unsuccessful.
IAG is disappointed that NIKI will not be able to develop and grow stronger as part of the Group.
Acquisition
RNS Number : 6328C
International Cons Airlines Group
23 January 2018
INTERNATIONAL AIRLINES GROUP UNSUCCESSFUL IN NIKI ASSETS BID
International Airlines Group (IAG) announced on December 29, 2017 that it had agreed to buy assets of the Austrian airline NIKI under the German insolvency process, subject to customary closing conditions.
On January 12, 2018 NIKI insolvency proceedings opened in Austria initiating a new sales process. IAG resubmitted its bid on January 19, 2018 and has been advised today that the bid was unsuccessful.
IAG is disappointed that NIKI will not be able to develop and grow stronger as part of the Group.
Jan 23, 2018, 2:23 am
#51
Join Date: Jul 2014
Location: Wedged somewhere between BTS and VIE ✈
Programs: Star Alliance Gold (A3 Gold), Oneworld Emerald (BA Gold), Hilton Diamond
Posts: 6,338
More news here:https://www.reuters.com/article/us-n...-idUSKBN1FC0GR
It looks like it went back to Niki Lauda after all. Not so bad I'd say.
It looks like it went back to Niki Lauda after all. Not so bad I'd say.
Jan 23, 2018, 4:00 am
#53
Join Date: Jul 2014
Location: Wedged somewhere between BTS and VIE ✈
Programs: Star Alliance Gold (A3 Gold), Oneworld Emerald (BA Gold), Hilton Diamond
Posts: 6,338
I say good luck to Niki Lauda.
Jan 23, 2018, 4:04 am
#54
Join Date: Jan 2010
Posts: 7,464
Jan 23, 2018, 4:18 am
#55
Join Date: Jul 2011
Posts: 1,663
Why the secrecy?
Jan 23, 2018, 4:42 am
#57
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,186
Doubt it. Lauda has the backing of Thomas Cook, who will use the fleet to serve the leisure charter market. It is very unlikely that Lauda will repeat the Niki low cost experiment that ended rather abruptly with a sale to AB.
Jan 23, 2018, 4:45 am
#58
Join Date: Sep 2014
Location: Brexile in ADB
Programs: BA, TK, HHonours, Le Club, Best Western Rewards
Posts: 7,067
Why the secrecy?
Jan 23, 2018, 4:57 am
#59
Join Date: Jun 2003
Programs: BA, IHG, 5C
Posts: 4,413
On the other hand there's no real reason why Lauda or the creditors want the price made public, nor any complications to the "price" including delayed/conditional payments, rolled-forward lease commitments, etc..
Jan 23, 2018, 8:54 am
#60
Join Date: Dec 2009
Location: Flatland
Programs: AA Lifetime Gold 1MM, BA Gold, UA Peon
Posts: 6,111
IAG can wait a couple of years and when Niki is on the rocks again, make another bid.
I don't see a bright future of high profits and expansion for Niki, and another leisure downturn or chronic competitive pressure could see them up for sale again.
I don't see a bright future of high profits and expansion for Niki, and another leisure downturn or chronic competitive pressure could see them up for sale again.