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10 reasons why IRL should say no to IAG on their Aer Lingus offer

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Comments

  • #102
    Dob74
    Registered Users, Registered Users 2 Posts: 1,049 ✭✭✭Dob74


    jaymcg91 wrote:
    Completely wrong. AA and UA both fly direct from here (AA to New York and Chicago, United to Newark, Washington DC and Chicago).


    Not all year round. And can pull the flights at any time. Just like IAG can.

    I am sure if IAG can make the same money by transferring the routes through London or Manchester they will. May not do it happen but they can if they want.


  • #103
    andrew
    Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 3,372 Mod ✭✭✭✭andrew


    Dob74 wrote: »
    Not all year round. And can pull the flights at any time. Just like IAG can.

    I am sure if IAG can make the same money by transferring the routes through London or Manchester they will. May not do it happen but they can if they want.

    Except that so long as there is demand for those flights at a cost which is profitable, which there is, they have absolutely no incentive to do that. The air travel market has worked perfectly fine in flying people from Ireland to America, there's no reason to think that that wil stop happening.


  • #104
    FreudianSlippers
    Registered Users, Registered Users 2 Posts: 20,397 ✭✭✭✭FreudianSlippers


    Dob74 wrote: »
    Not all year round.
    Are you just making this up as you go along? Please provide a shred of evidence that these are all seasonal flights.
    And can pull the flights at any time. Just like IAG can.
    Even if this were realistic, how does it at all change anything in terms of competition with EI owned by IAG? Are you suggesting that BA flies from Ireland to North America or something?

    I am sure if IAG can make the same money by transferring the routes through London or Manchester they will. May not do it happen but they can if they want.
    You're going to tell me with a straight face that IAG would seriously consider foregoing US pre-clearance to fly through Manchester or London?
    If anything, they might start stopping their cheaper flights in DUB to avail of US pre-clearance.


  • #105
    Icepick
    Registered Users, Registered Users 2 Posts: 2,456 ✭✭✭Icepick


    Selling the stake is another good decision of this government.


  • #106
    end of the road
    Registered Users, Registered Users 2 Posts: 29,195 ✭✭✭✭end of the road


    Icepick wrote: »
    Selling the stake is another good decision of this government.
    its not. it brings in a long term income to the government and the country

    I'm very highly educated. I know words, i have the best words, nobody has better words then me.



  • #107
    Jawgap
    Closed Accounts Posts: 20,297 ✭✭✭✭Jawgap


    end of the road wrote: »
    its not. it brings in a long term income to the government and the country

    Not always. The airline industry is notorious volatile and cyclical - especially for full service operators like AL.

    That means they don't always pay a dividend.

    This year they're paying a dividend - €0.05 per share, meaning the government will get about €6.7m on a shareholding worth about €335m or put it another way, they're getting about a 2% return on the holding.

    If the concern is income, they should definitely take the money and stick it in an investment fund, they'll get about 10% that way.


  • #108
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,443 Mod ✭✭✭✭Jim2007


    end of the road wrote: »
    its not. it brings in a long term income to the government and the country

    They are notorious basket cases from a financial point of view and governments should have as little to do with them as possible. US airlines are in and out of chapter 11 on a regular basis, then there was Swiss Air Group, KLM etc...

    It is a highly competitive environment requiring large capital investments - a receipt for financial disaster plain and simple.


  • #109
    Icepick
    Registered Users, Registered Users 2 Posts: 2,456 ✭✭✭Icepick


    end of the road wrote: »
    its not. it brings in a long term income to the government and the country
    And your evidence for this claim is? Certainly not past experience.
    Also, it will continue to bring in income in private hands as long as its profitable anyway and without the risk.


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