Impact of Airport Slot Rules on BA

Old Aug 3, 20, 12:45 pm
  #16  
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Originally Posted by JFX1764 View Post
At Gatwick, if other airlines want to expand, I'm sure BA would be more than happy to lease some slots it would rather not be operating just yet.
If BA isn't going to use the slots, then they should just be directly made available to those who will actually use them.

The "use-it-or-lose it" rule will eventually have to come back into play. And clearly, BA will go several years before they can possibly "grow" back to a size where they actually require all the slots they had up till the start of this year.

There is no good reason why BA, or any other airline for that matter, should retain far more slots now than they can possibly require for the foreseeable future, just because they had those slots in the past.
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Old Aug 3, 20, 3:14 pm
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Originally Posted by Swanhunter View Post
Apart from a few with restrictions from the BD merger the slots can be used for anything.
Indeed BA were very open about using the BD slots (in the long term) to switch some shorthaul flying into longhaul, saying it was the only realistic way they could do so at such a constrained airport. Their fleet plan until a few months ago reflected this. Plenty about the strategic plan in previous IAG shareholder presentations.
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Old Aug 3, 20, 5:16 pm
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I foresee sleepless nights for free-market economists ahead.

Since the beginning of the year, we’ve seen many businesses, even the poor ones, being saved.

Come what may, BA will not be overtaken at LHR.
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Old Aug 3, 20, 8:04 pm
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Originally Posted by MarkFlies View Post
Come what may, BA will not be overtaken at LHR.
Was there any possibility of that happening?
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Old Aug 4, 20, 12:48 am
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Originally Posted by Confus View Post
Indeed BA were very open about using the BD slots (in the long term) to switch some shorthaul flying into longhaul, saying it was the only realistic way they could do so at such a constrained airport. Their fleet plan until a few months ago reflected this. Plenty about the strategic plan in previous IAG shareholder presentations.
Slots come in pairs, a landing slot and a take-off slot. The main restriction on use is the time on the ground between them to unload and service the plane. Long haul would require a longer gap between them at a minimum.

The advantage of a large portfolio such as BA’s is to allow shuffling of slots to optimise use of the fleet. It also helps that LHR is its home base with the fleet mostly based on the ground there when not flying.
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Old Aug 4, 20, 12:56 am
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The 80/20 not being suspended must be a significant risk to BA. Many airlines like FR and easyJet would love the opportunity to seize a large number of slots, potentially T4 and build a major O&D operation. Once the slots are gone they won’t be coming back. The question is h ow much and for how long is IAG prepared to invest in hugely loss making operations to protect the slots? The very definition of a Pyrrhic victory.
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Old Aug 4, 20, 2:12 am
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Originally Posted by BrianDromey View Post
The 80/20 not being suspended must be a significant risk to BA. Many airlines like FR and easyJet would love the opportunity to seize a large number of slots, potentially T4 and build a major O&D operation. Once the slots are gone they won’t be coming back. The question is h ow much and for how long is IAG prepared to invest in hugely loss making operations to protect the slots? The very definition of a Pyrrhic victory.
EZY has posted some eye-watering Q2 results. Revenue was £7 million for the quarter, £300 million lost. There is no end in sight to the lockdown-ease lockdown-spike-lockdown cycle and demand is low (there's an interesting chart on forward bookings from the IAG reports). Easyjet has announced major job losses. Who has a few millions to spare to open up a new base and then a few hundred millions to ferry around empty air for a while, a la Virgin Atlantic Little Red? Let's be realistic, the slot rule is going to be suspended for the winter season and, I think, will either be suspended or relaxed for the Summer 2021. And even if Ryanair and EZY were to be stupid brave enough to open up a base right now at LHR, wait 'til they see the charges that HAL levies. There's none of the "here's a nice rebate for you mate" that you get from Gatwick, Stansted, Lappeenranta and so on. HAL charges back even the paper clips they use, and they don't do cheap. If you want cheap, the West Sussex Flying Club is open for business...
And let us not forget that the entirety of Europe is in the same situation. LH, AF... everyone. Actually, the world is in the same situation. It's not as if we're seeing BA on the ground and EK flying 6 A380s every day, is it?
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Old Aug 4, 20, 2:14 am
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Originally Posted by BrianDromey View Post
The 80/20 not being suspended must be a significant risk to BA. Many airlines like FR and easyJet would love the opportunity to seize a large number of slots, potentially T4 and build a major O&D operation. Once the slots are gone they won’t be coming back. The question is h ow much and for how long is IAG prepared to invest in hugely loss making operations to protect the slots? The very definition of a Pyrrhic victory.
I think BA would sacrifice LGW to retain its position at LHR, so it shouldn't be too difficult. BA runs a hub at LHR, so losing the slots would be a big disadvantage in the future in terms of feedings its flights.

The problem for easyjet/ryanair and other low cost carriers is that LHR is a very expensive airport to fly from in terms of airport charges, so their model gets eroded somewhat at the airport.
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Old Aug 4, 20, 2:23 am
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Originally Posted by irishguy28 View Post
If BA isn't going to use the slots, then they should just be directly made available to those who will actually use them.

The "use-it-or-lose it" rule will eventually have to come back into play. And clearly, BA will go several years before they can possibly "grow" back to a size where they actually require all the slots they had up till the start of this year.

There is no good reason why BA, or any other airline for that matter, should retain far more slots now than they can possibly require for the foreseeable future, just because they had those slots in the past.
BA will need these slots as soon as things pick up. Do you really want to hand these slots over to Chinese, Middle Eastern, US carriers etc? because BA is short of demand for 1 season and other carriers with more money, whether that be state funded or not, pick them up permanently? BA need a strong hub at LHR to be successful, not only allowing it to fly a more diverse set of routes, but also fuelling jobs and growth around Heathrow in all the supply chain, vs. at the other end of the route
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Old Aug 4, 20, 2:38 am
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I doubt easyJet would open a base at LHR and create a mini-hub. Flying in from their bases and operating W patterns could suffice.
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Old Aug 4, 20, 2:49 am
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Originally Posted by richardwft View Post
I doubt easyJet would open a base at LHR and create a mini-hub. Flying in from their bases and operating W patterns could suffice.
but it is still expensive - the landing fees and passenger fees are significantly more expensive than their other bases.
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Old Aug 4, 20, 2:53 am
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Originally Posted by irishguy28 View Post
If BA isn't going to use the slots, then they should just be directly made available to those who will actually use them.
And in the next 12-months, with increasingly likely local and national lock downs globally, India at record cases, the USA in complete denial and Africa a basket case, I do not see a rush of airlines queuing up to buy these slots. There is no demand for this amount of flying and this will be the case for years. I speculate that Heathrow will not be a slot restricted airport in practice until 2022 at the earliest.

Still being in business as an airline this time next year will be the only focus for most, if not all.
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Old Aug 4, 20, 2:56 am
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Originally Posted by jonas123 View Post
but it is still expensive - the landing fees and passenger fees are significantly more expensive than their other bases.
It seems viable for Eurowings. All easyJet needs to do is set appropriate fares and increase the cost of discretionary fees, speedy boarding, up front seat charges etc., for flights to LHR
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Old Aug 4, 20, 3:00 am
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SpiceJet are interested, from Flight Global https://www.flightglobal.com/spiceje...139613.article

Effective 1 Sept to 23 Oct and they are stating that the slots will remain effective when regular operations resume, and that they are in discussions to secure slots for the winter schedule.

No actual flight dates published yet, nor the type of aircraft to be used.
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Old Aug 4, 20, 3:31 am
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Originally Posted by richardwft View Post
It seems viable for Eurowings. All easyJet needs to do is set appropriate fares and increase the cost of discretionary fees, speedy boarding, up front seat charges etc., for flights to LHR
Eurowings is not a profitable entity of the LH Group
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