IAG buys Air Europa for 1000M Euros

Old Nov 4, 2019, 3:53 am
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Originally Posted by denhaagflyer
Well, I guess that is the "revenge" for LATAM leaving OW. If it were not for that, this should certainly raise enormous competition concerns! And I do not really see why IB would fly to some of the destinations with both mainline and with Air Europa; maybe split into different markets, like Air Canada does it with Rouge - IB for business-heavy routes and UX for leisure-heavy?
Hooray! Another IAG brand that doesn't quite know what it's doing. The most sensible future I can see here is for a rebrand towards UX becoming LEVEL but the fact the intention is to operate the UX brand for the medium term seems a little on the "we've bought it on a whim and we're still figuring out what we're going to do" side for my liking. Brand retention may also be in the purchase small print perhaps?
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Old Nov 4, 2019, 3:58 am
  #17  
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Originally Posted by Worcester
The Break clause is quite telling as Raffles points out. IAG are professionals so will have done the sums but I would not bank on this going through.
For those who don't work in the City, a 40m break fee on a 1bn deal is modest (not in % terms, but for a small deal like this you'd expect a higher number). This implies a) IAG is not certain it will go through and b) some hard bargaining by IAG because Air Europa will likely have pushed for more given the disruption this will cause whilst regulators look at it.
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Old Nov 4, 2019, 4:01 am
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Can you have too many brands in an airline group?
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Old Nov 4, 2019, 4:02 am
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Originally Posted by denhaagflyer
Well, I guess that is the "revenge" for LATAM leaving OW. If it were not for that, this should certainly raise enormous competition concerns! And I do not really see why IB would fly to some of the destinations with both mainline and with Air Europa; maybe split into different markets, like Air Canada does it with Rouge - IB for business-heavy routes and UX for leisure-heavy?
I think so too. The slide on South American market share is very clear. Once LATAM leaves OW, IAG needs more market share to avoid being marginalised.
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Old Nov 4, 2019, 4:13 am
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Originally Posted by SonTech
Probably not as it won't make any routes a monopoly after the takeover unlike when BA took over BD.
Nonsense.

To prove the claim "it won't make any routes a monopoly" wrong just one counterexample suffices. MAD-AGP is one that springs to mind.
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Old Nov 4, 2019, 4:56 am
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You don’t need 100% share to be a de facto monopoly. A small competitor (nominally) may be happy to be a price taker.
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Old Nov 4, 2019, 5:03 am
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Originally Posted by SKRan
Can you have too many brands in an airline group?
Lufthansa clearly don't think so.

I'm more of one mind with AF/KLM's new CEO on this. Brand proliferation is nonsense. IMO IAG should copy what he's done there and merge LEVEL, Vueling (and now Air Europa) onto IB. I'd suggest merging Aer Lingus onto BA but that'd give Irish nationalists a stroke, so probably best avoided.
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Old Nov 4, 2019, 5:18 am
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Originally Posted by Mordac
Lufthansa clearly don't think so.

I'm more of one mind with AF/KLM's new CEO on this. Brand proliferation is nonsense. IMO IAG should copy what he's done there and merge LEVEL, Vueling (and now Air Europa) onto IB. I'd suggest merging Aer Lingus onto BA but that'd give Irish nationalists a stroke, so probably best avoided.
Marriott has 29 or 30 brands which I struggle to understand which one is in which segment. I can try to explain Iberia express, LEVEL and Air Europa difference to an average traveller and I suspect they won't care.

Maintaining the 'national' prestige make sense - keeping Aer Lingus will hopefully attract - say - Gerry Adams - to fly it. So IB BA and EI should stay separate..
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Old Nov 4, 2019, 5:20 am
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Originally Posted by Mordac
Lufthansa clearly don't think so.

I'm more of one mind with AF/KLM's new CEO on this. Brand proliferation is nonsense. IMO IAG should copy what he's done there and merge LEVEL, Vueling (and now Air Europa) onto IB. I'd suggest merging Aer Lingus onto BA but that'd give Irish nationalists a stroke, so probably best avoided.
LH Group actually has less brands and clearer brands than IAG. Lufthansa, Swiss and Austrian plus Eurowings.
IAG has a chocolate box of brands and I can't identify most of it.
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Old Nov 4, 2019, 5:23 am
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Originally Posted by SKRan
LH Group actually has less brands and clearer brands than IAG. Lufthansa, Swiss and Austrian plus Eurowings.
IAG has a chocolate box of brands and I can't identify most of it.
You've left out: Air Dolomiti, Brussels Airlines, Edelweiss Air, and Sun Express (joint venture with TK).
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Old Nov 4, 2019, 5:24 am
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Originally Posted by SKRan
LH Group actually has less brands and clearer brands than IAG. Lufthansa, Swiss and Austrian plus Eurowings.
IAG has a chocolate box of brands and I can't identify most of it.
It would appear you can't identity all of the LH brands either

Deutsche Lufthansa AG Subsidiaries
Air Dolomiti
Austrian Airlines
Brussels Airlines
Eurowings
Eurowings Europe
Lufthansa CityLine
Swiss International Air Lines
Edelweiss Air
AeroLogic (50%)
SunExpress (50%)
SunExpress Deutschland
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Old Nov 4, 2019, 5:32 am
  #27  
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Originally Posted by SonTech
Probably not as it won't make any routes a monopoly after the takeover unlike when BA took over BD.
Really? Who are the other competitors that will prevent IAG having a monopoly on intra-Spanish routes like MAD-BCN, MAD-VLC, MAD-PMI, MAD-ACE, etc...?
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Old Nov 4, 2019, 5:38 am
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Originally Posted by Mordac
You've left out: Air Dolomiti, Brussels Airlines, Edelweiss Air, and Sun Express (joint venture with TK).
These are Miles & More partners. My list is from LH Group website and they don't take ownership of this Sun condiments.
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Old Nov 4, 2019, 5:39 am
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Originally Posted by KARFA
It would appear you can't identity all of the LH brands either

Deutsche Lufthansa AG Subsidiaries
Air Dolomiti
Austrian Airlines
Brussels Airlines
Eurowings
Eurowings Europe
Lufthansa CityLine
Swiss International Air Lines
Edelweiss Air
AeroLogic (50%)
SunExpress (50%)
SunExpress Deutschland
https://www.lufthansagroup.com/en/co...-segments.html

I take this link as official.
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Old Nov 4, 2019, 6:00 am
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Originally Posted by SKRan
Marriott has 29 or 30 brands which I struggle to understand which one is in which segment. I can try to explain Iberia express, LEVEL and Air Europa difference to an average traveller and I suspect they won't care.

Maintaining the 'national' prestige make sense - keeping Aer Lingus will hopefully attract - say - Gerry Adams - to fly it. So IB BA and EI should stay separate..
Keeping Aer Lingus will hopefully attract Gerry Adams to fly it? Is that a serious comment?
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