IAG acquires 4.61% stake in Norwegian
May 22, 2018, 6:35 am
#181
Join Date: Jun 2015
Location: LHR, LGW
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Interesting to follow.
May 22, 2018, 6:43 am
#182
Suspended
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May 22, 2018, 7:44 am
#183
Join Date: May 2013
Location: MAD
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I agree, I was thinking BA do have a value proposition upfront that attracts a slightly different market segment, premium market if we want use that word thats thrown about within BA. DY don't have lounges, BAEC benefits and CW or F cabins at LGW, so you can continue to compete in Y and after all it will all go into IAG's coffers. Or take the DY Long Haul slots and pass them over to BA for greater LH expansion, we all know LHR is full. It's all speculation of course Interesting to follow.
Interesting to follow.
May 22, 2018, 8:01 am
#184
Ambassador, British Airways Executive Club, easyJet and Ryanair
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DI is used for Norwegian Air UK Flights, including economy.
May 22, 2018, 9:11 am
#185
Join Date: May 2013
Location: MAD
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I thought all long haul out of LGW was on the DI certificate. Obviously it include economy since it would be the entire aircraft. They do operate DY flights to LGW, but those do not get lounge access since it's only the long haul flights that get it.
May 22, 2018, 10:53 am
#187
Join Date: Nov 2010
Posts: 5,596
Except the slots are not slots but slot pairs. They can only be used as a paired take off and landing slot. Getting to LAX or DFW and back in 5 hours would be quite a challenge. Life is not that simple.
May 22, 2018, 12:01 pm
#189
Join Date: Oct 2005
Location: London
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Posts: 1,090
Not quite. Just because BA might gain a departure slot at 0900 and an arrival at 1200, doesn't necessarily equate to BA using it for a route that would allow that. If network planning team identify a route that they would like to operate or add another flight, but the 0900 worked but the 1200 didn't, they would then look at who whole operation and determine if another service could be moved around so that the 0900 departure remained but we have an arrival at say 1700. It's about optimising the slot portfolio to best fit the requirements. Look at the use of the ex-BMI slots as a good example who how BA has been able to add additional long haul capacity over the years.
May 22, 2018, 3:11 pm
#190
Join Date: Nov 2010
Posts: 5,596
Not quite. Just because BA might gain a departure slot at 0900 and an arrival at 1200, doesn't necessarily equate to BA using it for a route that would allow that. If network planning team identify a route that they would like to operate or add another flight, but the 0900 worked but the 1200 didn't, they would then look at who whole operation and determine if another service could be moved around so that the 0900 departure remained but we have an arrival at say 1700. It's about optimising the slot portfolio to best fit the requirements. Look at the use of the ex-BMI slots as a good example who how BA has been able to add additional long haul capacity over the years.
Jun 4, 2018, 4:50 am
#191
Join Date: Sep 2014
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IATA estimate that rising costs are going to hit airlines profits
Airlines slash profit forecast as costs soar - BBC News
I wonder if that increases the likelihood of Norwegian accepting the offer. It seems counterintuitive given that Norwegian's modern fuel efficient fleet should have a comparative advantage, especially over IAG's relatively elderly fleet (BA average age 13 years, IB 10 years, DY 5 years, DU 3 years).
The International Air Transport Association has cut its profit forecast for 2018 by 12% to $33.8bn (£25.3bn).
Airlines' fuel costs this year are forecast to rise by nearly 30%, with the oil price expected to average $70 a barrel, up from $54.90 a barrel in 2017.
I wonder if that increases the likelihood of Norwegian accepting the offer. It seems counterintuitive given that Norwegian's modern fuel efficient fleet should have a comparative advantage, especially over IAG's relatively elderly fleet (BA average age 13 years, IB 10 years, DY 5 years, DU 3 years).
Jun 4, 2018, 8:20 am
#192
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It rather does tend to show that cost of ownership really isn't something to be overlooked in this field.
Jun 4, 2018, 8:50 am
#193
Join Date: Aug 2013
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Jun 5, 2018, 2:30 am
#194
Join Date: May 2013
Location: MAD
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I had thought that Norwegian was sure to survive the summer, but I'm no longer convinced. Rising oil and some operational hiccups could easily mean the jig is up within a couple months.
I bet we see a very fast-tracked deal within 6 weeks.
I bet we see a very fast-tracked deal within 6 weeks.
Jun 5, 2018, 8:20 am
#195
Join Date: Sep 2003
Location: OSL
Posts: 2,645
Well DNB yesterday issued a new research note saying they think DY needs another 2bn NOK in equity (ca. £200m) in order to remain compliant. Can't remember at what time, but obviously not great predictions by analysts. Personally I think they need more if they're to remain independent.