Aer Lingus - Page 5 - boards.ie
Boards.ie uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more x
Post Reply  
 
 
Thread Tools Search this Thread
31-03-2006, 13:05   #61
ishmael whale
Registered User
 
ishmael whale's Avatar
 
Join Date: Oct 2003
Posts: 1,024
I think your point is possibly right – seeing access to Heathrow as crucial could just be a legacy of old ways of thinking. And certainly I’ve no problem in principle with the sale of Aer Lingus.

But I think we do need to be clear that selling Aer Lingus means it will be a fully commercial operation. Golden shares will not enable the State to maintain any meaningful control – which may not necessarily be a bad thing. However, we do need to be clear that if their new owners decide Heathrow – Dubai is a more profitable route than Heathrow – Dublin, then that’s what they’ll do.
ishmael whale is offline  
Advertisement
31-03-2006, 13:10   #62
Eoin
Registered User
 
Eoin's Avatar
 
Join Date: Jul 2004
Posts: 17,939
Quote:
Originally Posted by ishmael whale
I think your point is possibly right – seeing access to Heathrow as crucial could just be a legacy of old ways of thinking. And certainly I’ve no problem in principle with the sale of Aer Lingus.

But I think we do need to be clear that selling Aer Lingus means it will be a fully commercial operation. Golden shares will not enable the State to maintain any meaningful control – which may not necessarily be a bad thing. However, we do need to be clear that if their new owners decide Heathrow – Dubai is a more profitable route than Heathrow – Dublin, then that’s what they’ll do.
This is true, however are there any controls currently in place to ensure that they do provide a service between London and Dublin? Or do they have the authority to drop this route in their current format?
Eoin is online now  
31-03-2006, 13:53   #63
BendiBus
Registered User
 
Join Date: Apr 2003
Location: Dublin
Posts: 2,014
Quote:
Originally Posted by eoin_s
This is true, however are there any controls currently in place to ensure that they do provide a service between London and Dublin? Or do they have the authority to drop this route in their current format?
There will be a profit to be made on Ireland-Heathrow well into the future (BMI use LHR slots to serve DUB without being forced to) so I don't think it should be forced on Aer Lingus by way of law. It could end up being another farce like the Shannon stopover where business and common sense are cast aside for local political considerations.
BendiBus is offline  
31-03-2006, 15:26   #64
dowlingm
Registered User
 
dowlingm's Avatar
 
Join Date: Aug 2004
Location: Toronto, Ontario
Posts: 4,905
eoin_s

Aer Lingus are not statutorily obliged to serve LHR (as Cork found out, the only place they have to serve is Shannon, and then only if they want to keep flying to the US)

Furthermore, when EI becomes a public company the company's obligation is primarily to shareholders unless legislation (like the Air Canada Public Participation Act) forces obligations on them. The Minister can instruct his Board appointees to oppose any move to drop LHR but I don't think that is currently the case.

Therefore, to answer your question - Aer Lingus could drop LHR and sell their slots at any time. However, they are codesharing with BA and would have to deal with ending that arrangement also. I don't think they would do so in a million years btw, it's SIPTU scaremongering - the only guy who would have done it is WW and he's gone and taken his O'Leary aping fantasy to BA.

Dublin-London is still one of the heaviest air traffic markets in Europe with significant business content, so there is money to be made for the moment, especially with A321s and A320s being the sole equipment (no 146s from time to time) and making good use of the slots.
dowlingm is offline  
Post Reply

Quick Reply
Message:
Remove Text Formatting
Bold
Italic
Underline

Insert Image
Wrap [QUOTE] tags around selected text
 
Decrease Size
Increase Size
Please sign up or log in to join the discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Share Tweet