Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
JAmie2k9
Topic Author
Posts: 2030
Joined: Mon Jan 09, 2012 5:15 pm

Aer Lingus to buy Croatia LHR Slots?

Sat Oct 22, 2016 1:28 pm

https://www.total-croatia-news.com/item ... n-heathrow

London Heathrow is the busiest European and world's most crowded airport, which serves about 75 million passengers annually. Croatia Airlines has decided to no longer fly into London Heathrow.

Due to the limited capacity of the airport and many airline's great interest from around the world to fly into it, slots - right landing and takeoff - at Heathrow are the most valuable of all the world's airports. Air France / KLM have recently sold to Oman Air - with their pair of daily slots selling for as much as $75 million.

Vecernji List announced that Croatia Airlines has nine pairs of weekly slots at Heathrow with the intention to sell them soon. The Croatia Airlines administration say they have chosen to do so because the Zagreb - London route has realized losses, even though the average occupancy of the aircraft is around 75%. These losses amount to, say, between one and three million euros a year, and occur because the competition on this line makes it hard to get better prices for tickets.

The Croatia Airlines administration explained that the sale of slots is set out in the restructuring program and that they are on the move as they need about $30 million for capital maintenance. The sales of these slots will, they say, cover part of these costs.

Which airline will negotiate this and what the amount will be, Croatia Airlines did not want to reveal because negotiations are still ongoing. According to some information, a buyer could be Ireland's Aer Lingus with an amount around 17 million euros. The value of the slots vary on the time of day, with them usually most expensive in the morning.

At present, aside from the Croatia Airlines Zagreb and London Heathrow route, you can connect with British Airways.
 
User avatar
vhtje
Posts: 1281
Joined: Sat Jan 10, 2009 12:40 pm

Re: Aer Lingus to buy Croatia LHR Slots?

Sat Oct 22, 2016 1:34 pm

Do not Croatia also fly to LGW? I am pretty certain I flew them from Zagreb to Gatters once. Perhaps their thought is to shift/focus operations at Gatters?
I only turn left when boarding aircraft. Well, mostly. All right, sometimes. OH OKAY - rarely.
 
JAmie2k9
Topic Author
Posts: 2030
Joined: Mon Jan 09, 2012 5:15 pm

Re: Aer Lingus to buy Croatia LHR Slots?

Sat Oct 22, 2016 1:35 pm

vhtje wrote:
Do not Croatia also fly to LGW? I am pretty certain I flew them from Zagreb to Gatters once. Perhaps their thought is to shift/focus operations at Gatters?


Presently a seasonal Split service, not sure about before.
 
fcogafa
Posts: 1307
Joined: Fri May 16, 2008 4:37 pm

Re: Aer Lingus to buy Croatia LHR Slots?

Sat Oct 22, 2016 1:53 pm

Why would EIN want the slots when they could easily get some from BAW?
 
JAmie2k9
Topic Author
Posts: 2030
Joined: Mon Jan 09, 2012 5:15 pm

Re: Aer Lingus to buy Croatia LHR Slots?

Sat Oct 22, 2016 2:04 pm

fcogafa wrote:
Why would EIN want the slots when they could easily get some from BAW?


BA wouldn't just give them slots, they could always fill extra capacity into LHR from Ireland.
 
User avatar
winterlight
Posts: 1432
Joined: Wed Oct 29, 2014 8:57 am

Re: Aer Lingus to buy Croatia LHR Slots?

Sat Oct 22, 2016 2:51 pm

Couldn't they have got a better price by selling to someone other than IAG? Or do they get first pick?
Question everything. Trust no-one.
 
tonystan
Posts: 1725
Joined: Sat Jan 07, 2006 7:39 am

Re: Aer Lingus to buy Croatia LHR Slots?

Sat Oct 22, 2016 2:52 pm

fcogafa wrote:
Why would EIN want the slots when they could easily get some from BAW?


Becaus ba want them too obviously!
My views are my own and do not reflect any other person or organisation.
 
vv701
Posts: 5895
Joined: Fri Aug 19, 2005 10:54 am

Re: Aer Lingus to buy Croatia LHR Slots?

Sat Oct 22, 2016 5:58 pm

BA currently have plenty of LHR slots. But a large number are potential 'remedy' slots.

The first batch of these 'remedy' slots are those originally awarded to VS's Little Red. They are still available to IAG competitors. However they are restricted for use on those routes where a monopoly was created when BA bought BD.

The second batch are three 'remedy' slot pairs on the LHR-JFK route. They were part of the competition authorities' requirement when approving the AA/BA/IB North Atlantic ATI. However these slots only need to be made available if the number of competitive flights on this prime route falls below a certain level. If my recollection is correct that is 13 daily flights.

In my view the BA/BD 'remedy' slots are likely to remain with BA. However the possibility of the likes of BE or even U2 applying for them is always there. Similarly I do not see any airline reducing their flights between LHR and JFK. This would make fleet planning that is already difficult even more difficult.

Already difficult? For the entire 2016 Summer |Season BA have wet leased two 737-7s from JetTime. Over the peak period of the season an IB 320, was also wet leased to operate a total of 204 flights between LHR and MAD. BA simply has not had enough aircraft to operate all the former Little Red slots. But if they were to transfer LHR slots to EI and had to surrender both sets of 'remedy' slots they would almost certainly have an excess number of aircraft and probably the crews to operate them. ]

Note here that Little Red wet leased three EI 320s to operate its 'remedy' slots Note also that the surrender of slots to operate three daily rotations to JFK would free up three long-range aircraft with no LHR slots to operate them. Also note that the surrender of these latter 'remedy' slots has to be at suitable times they would not have to be currently used for the JFK route.
 
jmmadrid
Posts: 375
Joined: Sat Aug 27, 2016 4:00 pm

Re: Aer Lingus to buy Croatia LHR Slots?

Sat Oct 22, 2016 7:36 pm

In addition to Croatia Airlines, there's only one airline in the London-Zagreb market: British Airways with an Airbus 319.

If Croatia cannot compete in this market then it's time to do some serious soul searching and update their business model.

I have searched different dates in November and Croatia Airlines are 20% more expensive than BA.
Don’t confuse my personality with my attitude. My personality is who I am. My attitude depends on who you are.
 
ahj2000
Posts: 1275
Joined: Wed Nov 26, 2014 5:34 pm

Sat Oct 22, 2016 8:25 pm

Makes sense. ZAG already has BA. If Croatia Air wants to still be in the ZAG-LON market, they can open Gatwick or opt to flow traffic over FRA/MUC/ZRH.

(Monarch is opening Zagreb from MAN and LGW this spring though, do that may just add to the reasons to leave the LON market.
-Andrés Juánez
 
Andy33
Posts: 2570
Joined: Tue Sep 15, 2009 9:30 am

Re: Aer Lingus to buy Croatia LHR Slots?

Sun Oct 23, 2016 6:10 am

vv701 wrote:
BA currently have plenty of LHR slots. But a large number are potential 'remedy' slots.


I agree.
Weren't there also a set of 'remedy' slots provided for Transaero on LHR-MOW? Given that Transaero has closed down, and no other Russian airline has jumped in, presumably BA has these slots back too.

One thing I've never clearly understood is how long the offer of remedy slots is open for. I know if someone actually uses the bmi remedy slots on the specified routes for 6 consecutive IATA seasons they become grandfathered to the new operator, and can be used on other routes within the EU as well, but for how many years does the slot coordinator ACL need to offer the slots with no takers before they become BA's permanently?

The same question really applies to the transatlantic JV remedy slots.
 
Andy33
Posts: 2570
Joined: Tue Sep 15, 2009 9:30 am

Re: Aer Lingus to buy Croatia LHR Slots?

Sun Oct 23, 2016 6:20 am

JAmie2k9 wrote:
fcogafa wrote:
Why would EIN want the slots when they could easily get some from BAW?


BA wouldn't just give them slots, they could always fill extra capacity into LHR from Ireland.


BA and Aer Lingus are both wholly owned by IAG. Slots will go where IAG decides. However as both airlines codeshare their UK-Ireland flights and have done so long before they came under common ownership in reality it makes little difference. What may be more interesting is whether the slots for sale are at time that would particularly suit EI's operations - 19 weekly slots isn't enough to keep one plane occupied with the shorter UK-Ireland flight durations.
 
User avatar
Braybuddy
Posts: 6883
Joined: Fri Aug 20, 2004 8:14 pm

Re: Aer Lingus to buy Croatia LHR Slots?

Sun Oct 23, 2016 7:12 am

Like all major decisions taken by the "Irish" carrier, this is not the sort of decision that will be made in Dublin any more.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos