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MLIAA
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Joined: Wed May 31, 2017 11:08 pm

What are IAG’s plans for Aer Lingus?

Mon Apr 27, 2020 2:35 pm

Ignoring COVID-19 (as difficult as that is), what will Aer Lingus look like going forward?

My understanding was that the combination of BREXIT and slot restrictions makes LHR a less attractive connecting hub, and once DUB has the infrastructure in place Aer Lingus would grow and take over a lot of IAG’s TATL connecting business.

What is taking so long for Aer Lingus to join oneworld and the TATL JV with American?
A319 A320 A321 A332 B712 B722 B737 B738 B739 B744 B752 B763 B764 B772 B788 B789 MD80 S340 E140 E145 E170 E175 E195 CRJ2 CRJ7 CRJ9
 
evanb
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Re: What are IAG’s plans for Aer Lingus?

Mon Apr 27, 2020 2:48 pm

I don't expect that Aer Lingus will be taking over any of IAG's TATL connecting business. I suspect they will add to it though.
 
SueD
Posts: 243
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Re: What are IAG’s plans for Aer Lingus?

Mon Apr 27, 2020 2:56 pm

MLIAA wrote:
Ignoring COVID-19 (as difficult as that is), what will Aer Lingus look like going forward?

My understanding was that the combination of BREXIT and slot restrictions makes LHR a less attractive connecting hub, and once DUB has the infrastructure in place Aer Lingus would grow and take over a lot of IAG’s TATL connecting business.

What is taking so long for Aer Lingus to join oneworld and the TATL JV with American?


This was never the case whatsoever ever beyond A-net

Whilst Dublin has pre clearance it handles approximately 1.2 million transit passengers . The vast majority of passengers are Point to Point .
 
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shamrock350
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Re: What are IAG’s plans for Aer Lingus?

Mon Apr 27, 2020 6:30 pm

Aer Lingus’ plans prior to COVID-19 are relatively well documented, the airline has made no secret about its transatlantic growth strategy, underpinned by its profitable and sustainable short haul network.

In late 2018 the airline announced its plans to increase its transatlantic seat capacity from around 2.8 million a year, to 4.7 million by 2023 and it was well on its way to doing that before COVID-19 struck, summer 2020 would have been its largest transatlantic flying programme ever.

https://blog.aerlingus.com/presenting-o ... -date/amp/

In terms of fleet, since the take over Aer Lingus has taken delivery of 6 brand new A333s and the first 4 of 8 A321LR aircraft, initially for 757 replacement. They’ve also ordered an additional 6 A321XLR aircraft for delivery in 2023. Future delivery timelines are now uncertain for obvious reasons.

This growth has come with good profits and the best return on investment of the IAG carriers. In 2018 the airline made a profit of €305million, a record year with revenues just shy of €2billion. The profit fell slightly in 2019 with €279million but revenues increased to €2.2billion.

https://blog.aerlingus.com/2018-results ... ategy/amp/

https://www.rte.ie/amp/1118116/

IAG didn’t buy Aer Lingus with the intention of giving it a new direction or making sweeping changes to its business, the airline was already in pretty good shape and was in the process of setting out its growth strategy when IAG came along and accelerated things.

All of this is now dwarfed by COVID-19 and like everyone else, Aer Lingus will be in survival mode for the weeks and months ahead. If they come through this, they’ll no doubt be a smaller but hopefully well positioned for growth and opportunities that may arise as the industry recovers.
 
skipness1E
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Re: What are IAG’s plans for Aer Lingus?

Mon Apr 27, 2020 6:54 pm

Ignoring the most important market disruptor in living memory, what are the growth plans for Aer Lingus?
1. Survival
2. See above

Until the dust settles, no one knows. Summer’s lost, winter’s the killer for European carriers. Who will be here to attempt a comeback next summer, no one can say. From an IAG standpoint, they may even decide to feed BA at LHR instead, leaving DUB/SNN point to point only.
Having two transatlantic hubs so close competing for next to no traffic for a year will change the group dynamics.

Forget growth.
 
Turnhouse1
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Re: What are IAG’s plans for Aer Lingus?

Mon Apr 27, 2020 7:15 pm

MLIAA wrote:
Ignoring COVID-19 (as difficult as that is), what will Aer Lingus look like going forward?

My understanding was that the combination of BREXIT and slot restrictions makes LHR a less attractive connecting hub, and once DUB has the infrastructure in place Aer Lingus would grow and take over a lot of IAG’s TATL connecting business.

What is taking so long for Aer Lingus to join oneworld and the TATL JV with American?


I'm really not a fan of Brexit, but don't see how it is a problem for connections through LHR as there is no requirement to have a visa to change plane here. Unlike the USA, the UK is capable of operating international transfers.

On Aer Lingus, there will always be an Ireland-USA market, Ireland is remaining in the EU so travel to core business centres which need multiple daily flights, Ryanair is more suited tp routes which only support once daily or lower frequency. The A220 for short haul and A321ULR/A330 for TATL would seem a good fleet mix. With some props for flights to regional UK, Regional Ireland to LHR/MAN/LPL/GLA/EDI and possibly an expanded Belfast operation.

If I can make one COVID related comment, a lot of British people might see Ireland as a 'safer' holiday option if Cornwall, Wales, Lakes and the Highlands are booked up, but going 'overseas' is still not a great option. Whether Aer Lingus and car hire are a good option for that I don't know, car ferry capacity is probably less than it was in the past.
 
onwFan
Posts: 433
Joined: Wed Feb 03, 2016 4:02 am

Re: What are IAG’s plans for Aer Lingus?

Mon Apr 27, 2020 7:16 pm

SueD wrote:
MLIAA wrote:
Ignoring COVID-19 (as difficult as that is), what will Aer Lingus look like going forward?

My understanding was that the combination of BREXIT and slot restrictions makes LHR a less attractive connecting hub, and once DUB has the infrastructure in place Aer Lingus would grow and take over a lot of IAG’s TATL connecting business.

What is taking so long for Aer Lingus to join oneworld and the TATL JV with American?


This was never the case whatsoever ever beyond A-net

Whilst Dublin has pre clearance it handles approximately 1.2 million transit passengers . The vast majority of passengers are Point to Point .

What was never the case? Aer Lingus has already applied to be included in the transatlantic JV with AA/BA/IB/FY - the decision is still pending with the US DOT. I would think that in the current environment, being part of the JV is even more inportant so that they can adjust capacity accordingly.
 
onwFan
Posts: 433
Joined: Wed Feb 03, 2016 4:02 am

Re: What are IAG’s plans for Aer Lingus?

Mon Apr 27, 2020 7:25 pm

MLIAA wrote:
Ignoring COVID-19 (as difficult as that is), what will Aer Lingus look like going forward?

My understanding was that the combination of BREXIT and slot restrictions makes LHR a less attractive connecting hub, and once DUB has the infrastructure in place Aer Lingus would grow and take over a lot of IAG’s TATL connecting business.

What is taking so long for Aer Lingus to join oneworld and the TATL JV with American?

What I never understood was why Aer Lingus still retains the partnership with UA instead of AA? Is it because of terms in the partnership contract? They even went so far as to cancel their partnership with CX and QF.

My understanding was that they were gearing towards a oneworld connect memership for which they need just 3 full member partners - AA, BA, IB and FY are natural. Maybe QR given their ownership. S7 is the only other oneworld member that flies to DUB.
 
Exeiowa
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Re: What are IAG’s plans for Aer Lingus?

Mon Apr 27, 2020 7:38 pm

I have connected a few times via Dublin from the US to EU for practical purposes it makes a good connection point as you are not over flying therefore makes reasonable flight times with connection for most of Europe (with the exception of the Iberian peninsular) and for English only speakers it is nice to be flying on an airline with English speakers and through an airport with English speakers. Dublin is not the maze that LHR can feel like and its a little cheaper than BA so unless you have a specific reason I think its always a viable option.
 
Galwayman
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Re: What are IAG’s plans for Aer Lingus?

Mon Apr 27, 2020 7:42 pm

The underlining fundamentals of EI are good
( finally )- I’m sure IAG will be looking at opportunities during this crisis , possibly EI to pick up extra or earlier A321s ...

EI would be a clear benefactor of Virgin not being bailed out ...more feed from Manchester / Belfast , more winter Orlando flights etc . EI could launch Vegas if Virgin go under
 
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shamrock350
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Joined: Mon Mar 28, 2005 12:38 am

Re: What are IAG’s plans for Aer Lingus?

Mon Apr 27, 2020 8:01 pm

onwFan wrote:
MLIAA wrote:
Ignoring COVID-19 (as difficult as that is), what will Aer Lingus look like going forward?

My understanding was that the combination of BREXIT and slot restrictions makes LHR a less attractive connecting hub, and once DUB has the infrastructure in place Aer Lingus would grow and take over a lot of IAG’s TATL connecting business.

What is taking so long for Aer Lingus to join oneworld and the TATL JV with American?

What I never understood was why Aer Lingus still retains the partnership with UA instead of AA? Is it because of terms in the partnership contract? They even went so far as to cancel their partnership with CX and QF.

My understanding was that they were gearing towards a oneworld connect memership for which they need just 3 full member partners - AA, BA, IB and FY are natural. Maybe QR given their ownership. S7 is the only other oneworld member that flies to DUB.


Aer Lingus always appeared more comfortable outside of an alliance where it could pick and chose who best to partner with instead of feeling tied to particular airlines via an alliance.

The airline itself has never expressed much interest in rejoining Oneworld, it was Willie Walsh who suggested it was likely at some point but Aer Lingus management have always appeared indifferent.

The process of joining the transatlantic joint venture is underway and once that happens we’ll likely see a few changes in terms of codeshares but alliance membership isn’t guaranteed.
 
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ElroyJetson
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Joined: Fri May 26, 2017 5:04 am

Re: What are IAG’s plans for Aer Lingus?

Mon Apr 27, 2020 11:05 pm

MLIAA wrote:
Ignoring COVID-19 (as difficult as that is), what will Aer Lingus look like going forward?

My understanding was that the combination of BREXIT and slot restrictions makes LHR a less attractive connecting hub, and once DUB has the infrastructure in place Aer Lingus would grow and take over a lot of IAG’s TATL connecting business.

What is taking so long for Aer Lingus to join oneworld and the TATL JV with American?


IAG sees Dublin as a relief hub for a maxed out LHR. Basically routing lower yielding traffic through DUB while continuing to funnel higher yielding pax through LHR.

Personally, I think it is a smart strategy that was working until COVID-19 shut down the World.
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Arion640
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Re: What are IAG’s plans for Aer Lingus?

Mon Apr 27, 2020 11:50 pm

Why does Brexit make a difference on how easy it is to connect through Heathrow?

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