LHRFlyer
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International Airlines Group Investor Presentation

Fri Nov 11, 2011 10:39 am

Below is a link to an investor presentation given by IAG to its institutional investors in Madrid.

Of particular interest are IAG's plans for Iberia to update its fleet, products and brand image as well as improve the MAD hub.

Also of note is slide 60 which shows that the London O&D market is bigger than both the Paris & Amsterdam market combined and bigger than the FRA, MUC, ZRH, VIE and BRU O&D markets combined.

http://media.corporate-ir.net/media_...Capital%20Markets%20Day%202011.pdf

[Edited 2011-11-11 02:44:52]
 
seansasLCY
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RE: International Airlines Group Investor Presentation

Fri Nov 11, 2011 12:56 pm

Looking at the final grouping of slides, its sounds as if Iberia will be getting a new livery of some kind. They speak of how the opposition has modernised but Iberia hasn't.

This will be interesting to see what look IAG has in mind for Iberia.
 
simairlinenet
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RE: International Airlines Group Investor Presentation

Fri Nov 11, 2011 1:28 pm

Slide 53: only 9% of capacity is to Asia-Pacific. I know IAG claims to continue to rely on its partners to serve this reason, but how long will this underinvestment continue (also shown on slides 79/80, actually this entire section does not present a positive picture)?

Slide 61: Paris-Guadeloupe is in the top 10 O&D longhaul routes worldwide. Why?
 
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Polot
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RE: International Airlines Group Investor Presentation

Fri Nov 11, 2011 2:24 pm

Quoting simairlinenet (Reply 2):
Slide 61: Paris-Guadeloupe is in the top 10 O&D longhaul routes worldwide. Why?

Guadeloupe is part of France, more specifically an overseas region, so a lot of O&D traffic between them. That said I don't fully understand that slide. They say top 10 O&D markets but give more than 10 city pairs.
 
LHRFlyer
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RE: International Airlines Group Investor Presentation

Fri Nov 11, 2011 2:38 pm

I think the plans to develop MAD are interesting. There is a lot of untapped potential there and I note the mention of the opportunity to capture Asia-Latin America traffic flows.

It's rare to get such a detailed document from the top of an organisation and it's worth taking the time to look through it. There are a lot of insights into the business.
 
vv701
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RE: International Airlines Group Investor Presentation

Fri Nov 11, 2011 4:25 pm

Quoting polot (Reply 3):
That said I don't fully understand that slide. They say top 10 O&D markets but give more than 10 city pairs.

Of course none of us have had thew sadvantage of hearing the words spoken that accpmpanied each slide. So - fdon't flame me - here's my guess.

There are twelve routes depited amongst the Top Ten O&D Markets of more than 3,000 miles. Two of these, Los Angeles to Seoul and Tokyo to Honolulu, are stand alone "routes". The remaining 10 are interlinked "markets". Could that be it?

To me the most interesting slides are those depicting the current fleet plans for BA, IB annd the new Iberia Express to be launched next year. In summary they are:


From Slide 18:

BA 744s. 2011: 52. 2015: 45. (That means no more back from the desert and 7 additional retirements.)

BA 763s. 2011: 14. 2015: 1. (14 retirements as 787s are delivered).

BA 772s. 2011: 49. 2015: 54. (BA have 44 772s + 4 77Ws in service. A 5th 77W is due by year end. A further frame will be delivered early next year and they recently firmed up 2 options. The 2015 figure includes all of these PLUS TWO.

BA 787s. 2011: 0. 2015: 16

BA 380S. 2011: 0. 2015: 9

BA 320 family. 2011: 84. 2015: 95 with 10 deliveries before end 2015. (BA will receive one new 320 early next year . ~It has been previously announced they will buy 5 new 320s ordered by IB. Now we see an additional 4 aircraft,)


From Slide 178:

IB 343s. 2011: 18. 2015: 7 with a comment that 343s will be replaced by 330s until a suitable alternative replacement becomes available.

IB 346s. 2011: 17. 2015:17.

IB 330s. 2011: 0. 2015:16. (With the retirement of 11 343s - see above - this is a flkeet expansion of 5 frames


From Slide 199:

Iberia Express 320s: 2011: 2015: 40 (mainly - solely? - from transfers from IB main line).
 
AeroWesty
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RE: International Airlines Group Investor Presentation

Fri Nov 11, 2011 4:49 pm

Quoting LHRFlyer (Thread starter):
Below is a link to an investor presentation given by IAG to its institutional investors in Madrid.

Thanks for the link. Interesting read.

Quoting seansasLCY (Reply 1):
Looking at the final grouping of slides, its sounds as if Iberia will be getting a new livery of some kind. They speak of how the opposition has modernised but Iberia hasn't.

Since 1970! And people talk about AA's dating back to 1968.  

I also noticed an unfortunate piece of photoshopping done on the ITA screens in slides 106 and 107. Oops.
International Homo of Mystery
 
Tristarsteve
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RE: International Airlines Group Investor Presentation

Fri Nov 11, 2011 6:28 pm

Quoting VV701 (Reply 5):
BA 763s. 2011: 14. 2015: 1. (14 retirements as 787s are delivered).

as usual the 14 Long haul B767s are mentioned, being replaced by B787.

But where are the 7 short hail aircraft? Can't see them anywhere.
 
AeroWesty
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RE: International Airlines Group Investor Presentation

Fri Nov 11, 2011 6:59 pm

Quoting Tristarsteve (Reply 7):
But where are the 7 short hail aircraft? Can't see them anywhere.

Wouldn't they be part of the short-haul "other" totals? 39 in 2011 and 34 in 2015.
International Homo of Mystery
 
speedbird9
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RE: International Airlines Group Investor Presentation

Fri Nov 11, 2011 8:20 pm

From the looks of Slide 18 BA are planning to order 2 more A318's
also that slide 65 the map of LHR labels T5 as IAG and not BA

Just a thought!
 
LHRFlyer
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RE: International Airlines Group Investor Presentation

Fri Nov 11, 2011 8:29 pm

Quoting speedbird9 (Reply 9):
From the looks of Slide 18 BA are planning to order 2 more A318's
also that slide 65 the map of LHR labels T5 as IAG and not BA

Just a thought!


My reading is that the A318 fleet is planned to remain at 2 in 2015.

Technically T5 will be an IAG terminal next year because Iberia is moving in at the end of the winter season.
 
rtfm
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RE: International Airlines Group Investor Presentation

Fri Nov 11, 2011 8:45 pm

Quoting speedbird9 (Reply 9):
From the looks of Slide 18 BA are planning to order 2 more A318's

No - you're misreading the slide - the figures compare total in service now (i.e. 2011) with total in service in 2015. (So 2 x A318 now and still 2 x A318 in 2015.)
 
GCT64
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RE: International Airlines Group Investor Presentation

Fri Nov 11, 2011 8:49 pm

Quoting AeroWesty (Reply 8):
Wouldn't they be part of the short-haul "other" totals? 39 in 2011 and 34 in 2015.

This seems to me to imply that the bulk of the BA LGW 734s will still be in service in 2015 - or have I missed something?
Flown in: A30B,A306,A310,A319,A320,A321,A332,A333,A343,A346,A388,BA11,BU31,B190, B461,(..53 more types..),VC10,WESX
 
AeroWesty
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RE: International Airlines Group Investor Presentation

Sat Nov 12, 2011 12:14 am

Quoting GCT64 (Reply 12):
This seems to me to imply that the bulk of the BA LGW 734s will still be in service in 2015

Seems plausible.

On my second read through the presentation, the figures for savings on crew costs leapt out at me for how relatively small they were in comparison to other line items. €30 mil. here, €45 mil. there, etc., with seemingly the vast bulk of savings and improved earnings coming from the streamlining of operations, bulk purchases, joint ventures, and more fuel-efficient aircraft. Was the industrial strife and damage to the BA brand worth it for relatively little in return, or is there a bigger picture on the labor front that I'm missing? It's not necessary to rehash all of the labor episodes, but perhaps someone could summarize where the savings has been documented in this presentation.

On another topic, a few of the graphics that were particularly interesting to me were slide 70 comparing LHR-MAD flight timings, allowing night stops to be eliminated while convenience/frequency improved. Then the traffic flows on slide 90 combined with slide 114, where IAG intends to be a player carrying cargo between the BRIC countries. In slide 90 IAG appears confident that between BA and IB, they can maintain valuable market share between Africa on one end, and the Mideast and South Asia on the other, plus between N. America and Africa, Mideast and South Asia. Not quite sure I'd bet too much of the farm on that down the road, unless IAG can deliver on pricing and "passion for the brand" to place bums in seats with all of the new competition.

Slide 63 represents good visual impact of how much more efficient connecting in Europe could be vs. the Gulf. But it's deceptive—PEK-DXB-GRU isn't even 300 miles off of the PEK-LHR-GRU route, despite the map seeming to indicate that the difference is much greater on the 11,000-mile trip. To the uneducated, one could think "no one would ever be so silly as to fly Emirates, BA has nothing to worry about. Full steam ahead towards bigger and better profits." Then slide 71 offers a fair comparison between connecting in LHR vs. MAD, but is there really that much traffic carried JFK-MAD-ARN to optimize?

I've come away from the presentation thinking it looks nice, is a great start, has a bunch of info, but can IAG really deliver on the goods?
International Homo of Mystery
 
LHRFlyer
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RE: International Airlines Group Investor Presentation

Sat Nov 12, 2011 8:39 am

Regarding cabin crew savings, there were two elements originally. The first came from reducing crewing levels on the existing fleets (which saved £60m) and the establishment of Mixed Fleet. Remember the savings quoted are only to 2015 and will increase as Mixed Fleet grows.

The industrial strife was worth it. BA is now in a position to grow, partly because it has a much more competitive cost base. There are lots of other indirect benefits of Mixed Fleet such as much no restrictive practices, much much greater flexibility during irregular ops, promotion solely on merit. Things had to change and allowing the cabin crew union to resist change would have set a dangerous precedent.
 
speedbird9
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RE: International Airlines Group Investor Presentation

Sat Nov 12, 2011 10:56 am

Quoting LHRFlyer (Reply 10):
Technically T5 will be an IAG terminal next year because Iberia is moving in at the end of the winter season.

when did this happen? I know BA planned to switched MAD and BCN from T3 to T5 but i didnt know anything about Iberia moving in with BA. I would have thought it would have made more sense to stay at T3 for easier connection with oneworld

Quoting rtfm (Reply 11):
Quoting speedbird9 (Reply 9):
From the looks of Slide 18 BA are planning to order 2 more A318's

No - you're misreading the slide - the figures compare total in service now (i.e. 2011) with total in service in 2015. (So 2 x A318 now and still 2 x A318 in 2015.)

oh thanks for clearing that up. Thanks

Thanks
 
lhr380
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RE: International Airlines Group Investor Presentation

Sat Nov 12, 2011 11:10 am

Quoting speedbird9 (Reply 15):
when did this happen? I know BA planned to switched MAD and BCN from T3 to T5 but i didnt know anything about Iberia moving in with BA. I would have thought it would have made more sense to stay at T3 for easier connection with oneworld

Was always going to happen. Even with IB in T5, its still very easy to connect to the T3 Oneworld flights. Took me 15 min on the connection bus yesterday, and even though I bypass security in Connections as staff, at the time I went thru it was very quiet in security.
(The views on this site are my own and no one elses)
 
fcogafa
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RE: International Airlines Group Investor Presentation

Sat Nov 12, 2011 11:49 am

Quoting lhr380 (Reply 16):
flights. Took me 15 min on the connection bus yesterday, and even though I bypass security in Connections as staff, at the time I went thru it was very quiet in security.

What route does the bus take from T3 to T5, does it stay airside?
 
lhr380
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RE: International Airlines Group Investor Presentation

Sat Nov 12, 2011 1:26 pm

Quoting fcogafa (Reply 17):
What route does the bus take from T3 to T5, does it stay airside?

Yep. From T3 it goes into the tunnel to T5, you go along 09L for a little then back in a tunnel and come up at the Southside of T5. The views GOING to T3 are better, You go down to the North end, into a tunnel, pop up at T5B, going along the whole length with the Planes on the right side of you, then back in the tunnel to T3, past a few gates and then get to the Connections Bus centre.
(The views on this site are my own and no one elses)
 
mikey72
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RE: International Airlines Group Investor Presentation

Sat Nov 12, 2011 1:41 pm

Quoting VV701 (Reply 5):
BA 744s. 2011: 52. 2015: 45. (That means no more back from the desert and 7 additional retirements.)

Some of them are getting a bit tatty I've noticed but I suppose they will get the new cabins/seats etc ?
Flying is like sex - I've never had all I wanted but occasionally I've had all I can stand.
 
GSTBA
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RE: International Airlines Group Investor Presentation

Sat Nov 12, 2011 9:46 pm

quote=mikey72,reply=19]Some of them are getting a bit tatty I've noticed but I suppose they will get the new cabins/seats etc ?[/quote]

BA has for some reason only known to them NO plans to fit any of the 747 fleet with the new WT, WTP or Thales AVOD products.

The majority, but not all of the 747 will be fitted with the New First Cabin.

So far BA have fitted the New First Product to the following 747's

Mid J (52J) Configured:

G-BNLG, G-BNLU & G-BNLV
G-CIVD, G-CIVE, G-CIVJ, G-CIVK, G-CIVN, G-CIVP & G-CIVT

Hi J (70J) Configured:

G-BNLE, G-BNLK, G-BNLN, G-BNLO, G-BNLP,G-BNLT
G-BYGA, G-BYGB, G-BYGC, G-BYGE G-BYGF & G-BYGG
G-CIVF, G-CIVG, G-CIVH, G-CIVI, G-CIVM, G-CIVO, G-CIVR & G-CIVS

BA plan to fit over the coming months the following 747's with the New First Cabin

Mid J (52J) Configured:

G-CIVL & G-CIVU

Hi J (70J) Configured:

G-BYGD
G-CIVV, G-CIVW, G-CIVX, G-CIVY & G-CIVZ
(G-CIVZ currently at CWL expected to return with new F fitted)

The following 747's will NOT be fitted with the New First Cabin

Mid J (52J) Configured:

G-BNLF, G-BNLI, G-BNLL, G-BNLM, G-BNLR, G-BNLS, G-BNLW, G-BNLX, G-BNLY & G-BNLZ
G-CIVA, G-CIVB & G-CIVC


BA plan to fit the new WT, WTP and Thales AVOD system to the all new deliveries and to the following 772's.

G-RAES (Aircraft currently at CWL for refit)
G-VIIA, G-VIIB, G-VIIC, G-VIID, G-VIIE, G-VIIF, G-VIIG, G-VIIH, G-VIIJ, G-VIIK, G-VIIL, G-VIIM, G-VIIN & G-VIIS
G-ZZZA, G-ZZZB and G-ZZZC

There are no plans to fit the cabin to any of the other 772's in service
 
lhr380
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RE: International Airlines Group Investor Presentation

Sat Nov 12, 2011 9:55 pm

Quoting GSTBA (Reply 20):
BA has for some reason only known to them NO plans to fit any of the 747 fleet with the new WT, WTP or Thales AVOD products.

Maybe because they will start to go when the 380s start to arrive in about a year, and only just had AVOD installed very recently?

The 767 is getting the full refit with the new cabins and IFE, new overhead as well/
(The views on this site are my own and no one elses)
 
robso2
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RE: International Airlines Group Investor Presentation

Sat Nov 12, 2011 10:38 pm

Quoting Tristarsteve (Reply 7):
But where are the 7 short hail aircraft? Can't see them anywhere.

These are mentioned on slide 18 under 'other aircraft'
733/4/5/6/7/8/9, 319/20/21, 752, 744, 772/W, 332/3, 343/6, E70/90, AT43, AR85/1, D38, D10, M82
 
Byrdluvs747
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RE: International Airlines Group Investor Presentation

Sat Nov 12, 2011 10:46 pm

I was hoping to extract some tidbit about IAG's future acquisition possibilities.
The 747: The hands who designed it were guided by god.
 
mikey72
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RE: International Airlines Group Investor Presentation

Sun Nov 13, 2011 7:43 am

Quoting GSTBA (Reply 20):
The following 747's will NOT be fitted with the New First Cabin
Quoting GSTBA (Reply 20):
There are no plans to fit the cabin to any of the other 772's in service

As much as I support BA I do wish they would reach a stage where the entire long-haul fleet have the same product. This hasn't been the case for some time now.

However, I do understand it must be like painting the Forth Bridge at times !
Flying is like sex - I've never had all I wanted but occasionally I've had all I can stand.
 
Auchmithie
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RE: International Airlines Group Investor Presentation

Sun Nov 13, 2011 8:35 am

Quoting VV701 (Reply 5):
BA 772s. 2011: 49. 2015: 54. (BA have 44 772s + 4 77Ws in service. A 5th 77W is due by year end. A further frame will be delivered early next year and they recently firmed up 2 options. The 2015 figure includes all of these PLUS TWO.

The 49 strong fleet would be before G-STBD entered service so 3 x 772 (ZZZ* series) + 24 x 772IGW (VII* series +
G-RAES) + 19 x 772ER (YMM* series) + 3 x 77W = 49.

Add G-STBD/E/F plus the two recently firmed up 77W options and you have a 54 strong fleet.

No need for a PLUS TWO.
 
robso2
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RE: International Airlines Group Investor Presentation

Sun Nov 13, 2011 9:59 am

I am surprised that BA have not decided to retired more of the 744's and opt to purchase a replacement for some of the more elderly in the fleet. I assume that the oldest will be the first to go e.g. G'BLNE but having said that this aircraft has been refurbished with new First.
I'm still clinging on to the small hope that the 748 will feature in the fleet one day!
733/4/5/6/7/8/9, 319/20/21, 752, 744, 772/W, 332/3, 343/6, E70/90, AT43, AR85/1, D38, D10, M82
 
lhr380
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RE: International Airlines Group Investor Presentation

Sun Nov 13, 2011 11:21 am

Quoting robso2 (Reply 26):
I am surprised that BA have not decided to retired more of the 744's and opt to purchase a replacement for some of the more elderly in the fleet.

They have, the 787 and 380 as well as the 773. But of course the airline needs all the frames it can, and has of course brought planes back from storage until these aircraft come into the fleet.
(The views on this site are my own and no one elses)
 
vv701
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RE: International Airlines Group Investor Presentation

Sun Nov 13, 2011 6:39 pm

Quoting mikey72 (Reply 24):
As much as I support BA I do wish they would reach a stage where the entire long-haul fleet have the same product. This hasn't been the case for some time now.

However, I do understand it must be like painting the Forth Bridge at times !

Think you hit the nail on the head except that they have been continuously painting the Forth Railway Bridge since it was opened in 1890 until earlier this year. The last completed paint job using high tech modern paint is meant to last for the next 25 years.

In terms of the BA fleet since mid December 2006 when 744 G-BNLK was ferried to CWL to be the first aircraft to be fitted with the 2nd generation BA lie-flat J Class seat there has been a continuous procession of their long haul aircraft to CWL for cabin or seat upgrades. So I guess decisions to skip some of the fleet are determined by the return BA perceives it will obtain by having certain aircraft on certain routes upgraded as soon as possible.

Quoting robso2 (Reply 26):
I am surprised that BA have not decided to retired more of the 744's and opt to purchase a replacement for some of the more elderly in the fleet. I assume that the oldest will be the first to go e.g. G'BLNE but having said that this aircraft has been refurbished with new First.


If we take the eight 744s that BA parked up during the Credit Crunch, they were amongst the 21 oldest in their fleet. They were, in order of stand-down:

G-BNLC October 2008. To be broken up
G-BNLB November 2008. To be broken up
G-BNLG September 2009. At CWL to be fitted with new F Class cabin and having C Check. To be returned to service soon
G-BNLH 01 October 2009. Still parked VCV
G-BNLU 18 October 2009. Returned to service July 2011
G-BNLV 26 October 2009. Returned to service December 2010
G-BNLA 26 October 2009. Still parked VCV
G-BNLD February 2010. Still parked VCV.

But the order in which they were withdrawn from use was determined by which aircraft required a major ('C') service first.

In terms of the need to replace the older aircraft in the current fleet with modern more fuel efficient aircraft, there is a significant balancing factor in the cost equation, and that is the capital cost of the equipment. First while a modern VLA will cost more than US$200 million, it was reported that BA's initial order for 16 744s with options on a further 12 was placed at a cost of US$25 million each. Second with a policy that depreciates their long haul aircraft to a residual (scrap?) value over around 20 years, BA incurrs no capital cost (depreciation charge) when operating such an aircraft.

Here it is worth noting that all the aircraft in the registration range G-BNLA to 'LT will be 21 years or older by the end of next February. So their higher fuel burn will certainly be more than balanced by the very low or zero depreciation that has to be charged to the airline's accounts.
 
cmf
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RE: International Airlines Group Investor Presentation

Sun Nov 13, 2011 10:32 pm

Quoting VV701 (Reply 28):
it was reported that BA's initial order for 16 744s with options on a further 12 was placed at a cost of US$25 million each.

That sounds incredibly low. Almost the same as Pan Am paid for their original order some 20 years before.
Don’t repeat earlier generations mistakes. Learn history for a better future.
 
vv701
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RE: International Airlines Group Investor Presentation

Mon Nov 14, 2011 2:16 am

Quoting cmf (Reply 29):
That sounds incredibly low. Almost the same as Pan Am paid for their original order some 20 years before.

Thanks for that. Checked my source and it should have been $150million each. Sorry. I was confusing it with the price contracted for each of the five Concordes ordered by BOAC in July 1972.       
 
mikey72
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RE: International Airlines Group Investor Presentation

Mon Nov 14, 2011 8:32 am

Quoting AeroWesty (Reply 6):
Looking at the final grouping of slides, its sounds as if Iberia will be getting a new livery of some kind. They speak of how the opposition has modernised but Iberia hasn't.


Since 1970! And people talk about AA's dating back to 1968.

AA's livery looks pretty timeless to me. I think it's one of the best out there !

Just out of interest when is EK's next Investor Presentation ?

  

(If EK were a soccer team none of their opponents would have a goalie)

  
Flying is like sex - I've never had all I wanted but occasionally I've had all I can stand.

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