oliver2002

Back in 2011 he got 40 million for his 51% stake from AB...: Lauda verkauft Niki an Air Berlin - news.ORF.at

BrianDromey

Of course they wanted a bargain. What were they actually buying? Essentially, a slot portfolio in Palma, a small foothold in the markets dominated by Lufthansa & Friends. Niki airline is non-operational, most of its infrastructure would have collapsed with AB, which is why Lauda needs Thomas Cook. Essentially IAG were just opening a new Vueling base in VIE - which they could still do, should they wish.

I don't think thats its fair to characterise IAG as some sort of jobs slashing machine. While significant numbers have been lost at IB since the formation of IAG, this has put the airline on a solid, profitable foundation and it is expanding. There have been no significant job loses at EI or Vueling - the opposite in fact.

Remember that LH were not allowed to have Niki on the basis of competition concerns, being part of the larger IAG or AF/KL group would have allayed thee fears. Austrian (LH) could easily crush the new Lauda Motion should it so wish. IAG envisioned doubling the Niki fleet over the next 2 years. There is very little chance that Lauda Motion will be flying 30 aircraft by 2020.

Shuttle

Whilst I am disappointed as a passenger that IAG did not win this, given that Wizz Air recently their intention to establish a base at VIE and given Wizz Air's significantly lower costs than Vueling or Niki, as an IAG shareholder, it might turn out quite a lucky escape for IAG rather than starting a low-cost turf war with Wizz Air.

oliver2002

The biggest asset is/was a dozen or so aircraft with crew. Difficult to find both at short notice in Europe right now. A320 aircraft are all taken, flight deck crew few and far between.

Prospero

Reuters reported on 24 Jan that 90% of Niki's pilots are actively seeking positions elsewhere - you cannot blame them given the months of uncertainty. While Laudamotion GmbH's successful bid will be received as good news, those weighing up the idea of staying may still holding onto doubts about their long term job security.

https://www.reuters.com/article/us-n...-idUSKBN1FD202

flatlander

I'm sure Vueling can be just as cheap and nasty as Wizz Air. A colleague who uses Wizz Air regularly (the only easy route to his ancestral homeland) describes them as "Like Ryanair before the charm offensive", so that's almost down to Vueling's service level. IAG is pretty well positioned to run another low cost airline if they want to. What they did not want to do, I suspect, is overpay for the opportunity to do so.

dylanks

And now it looks like Ryan Air has snuck in, with a 24.9% purchase of the new Laudamotion, with the option to increase the stake up to 75%. https://www.reuters.com/article/us-l...-idUSKBN1GW0V1

Interesting in that this is exactly what Lufthansa was probably hoping to avoid (more Ryan Air presence into Germany and Eastern Europe routes).

Tobias-UK

Mr O'Leary performing a little magic there. I suspect that was a very shrewd move.