Tag Archives: IAG

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David Learmount (above) and Dublin Airport (top)

David Learmount is the operations and safety editor of Flight International magazine and an expert on aviation issues.

he went on RTÉ R1’s News at One with Aine Lawlor to discuss the possible takeover of Aer Lingus by British Airways-parent IAG,

Aine Lawlor: “David we had IAG, this merged former British Airways and Iberia Airlines setting out a stall this morning saying Aer Lingus would remain a stand-alone company and the sale would secure its future. But I suppose in terms of guarantees on being stand-alone, we always remember, there used to be a company here called British Midland.”


David Learmount:
“Indeed, yes. I think, you know, Aer Lingus’s a little bit different. Let’s get this straight, Aer Lingus could continue to exist on its own but it will be very limited and it will only ever be a niche carrier but then, maybe that’s right, and maybe that’s obvious, Ireland is, you know, a niche on the edge of Europe. But because it’s an island, because Ireland is an island, that means airlines are far more important than they are to people who are landlocked, so Aer Lingus could survive without a merger but it will be very limited.”

Lawlor: “Limited in what way?”

Learmount: “Well I mean the opportunities are not there you see really what you’ve got to do is look outside, I’m not recommending this, I don’t have a view on whether this merger will go ahead, so let’s get that straight, I’m not arguing in favour of it, what I am saying though is that if you have a look at the way the world is going consolidations merger and alliances are the way that airlines are staying afloat. Let’s have a look at another couple of countries, which are relatively small and have a relatively low population compared with the big boys. Belgium – Sabena, dead ages ago, it doesn’t have, you know, a national carrier any longer. Hungary – Marleve – dead. The Swiss would have gone under were it not for, you know, if Switzerland were in the EU because it couldn’t have supported, you know, Swiss the way it did, so you know loads of carriers like KLM and Air France have got together, Lufthansa and Austrian Airlines, like I say, Aer Lingus could survive on its own, it doesn’t need anybody but if you have a look outside at the way that, that aviation is going and the way that you cannot protect airlines any longer because the world is globalizing, then, you know, Aer Lingus is going to look rather lonely so if it’s not IAG you’ll find other people sniffing round in due course.”

Lawlor: “And the Heathrow slots that we hear so much discussion about, 24 slots as far as I understand it that Aer Lingus has, are they their property outright or do they belong to Heathrow, how do they value that?”


Learmount:
“No, I mean, basically, theoretically they are not owned by any body but in practical terms they are owned, if an airline uses them they own them, because basically the rights are like this it’s use it or lose it, Aer Lingus uses every slot it’s got so effectively, unless Aer Lingus wants to sell a slot it hangs on to them, if Aer Lingus is acquired one of the parts of the value which IAG would be paying for it is the access to those slots, now if you were to ask me what IAG would then do with the slots I wouldn’t say it won’t repurpose some of them, one or two, one of the things you’ve got to realise though is the feed into Heathrow from Dublin for BA’s intercontinental flights is highly value,d they’re not going to kill them off.”

Lawlor: “So, the other thing which is a big question for the political masters here who will have to make the final call is how essential those slots are to this country’s connectivity, to this country’s capacity to do business with the rest of the world.”

Learmount: “Well they are very important, because Heathrow is a very good hub but Dublin has links to Paris, to Frankfurt, you’ve got other hubs and they are not very far away, you’ve got links to Amsterdam, you don’t actually need Heathrow but it’s jolly nice to have…”

Listen here

Earlier: Put That Down

(Photocall ireland, BBC)