Aer Lingus Heathrow Slots

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It seems that the possibilities of an IAG acquisition of Aer Lingus are increasing as the Irish carrier considers the latest offer of €2.55 a share, valuing the business at about €1.36 billion. Using our schedules and traffic analytics tools we’ve taken a quick glance at what the offer means and the top level elements of any such agreement.

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While it’s clearly not all about slots at London Heathrow that is certainly a major part of the logic for IAG from what we can see. Aer Lingus are currently the third largest airline at Heathrow in terms of slots with a 3.3% share of the available pool. Any acquisition would give IAG - or perhaps in this case more appropriately, British Airways - around a 54% share of monthly frequency from the airport; some ten times more share than their nearest competitor, Virgin Atlantic. With no planned capacity increases at Heathrow for sometime, securing a further 3% share of movements for IAG at the proposed price would seem to represent a very smart strategic investment as well as commercial opportunity.

With its distinctive green shamrock, Aer Lingus is a global symbol of Ireland. The name comes from the Irish word 'long' which means ship. So Aer Lingus roughly translates as 'air fleet'. The airline was founded in 1936. These include: a guarantee that the Heathrow slots cannot be sold, even to fellow IAG airlines, without the government’s approval; the Aer Lingus company name, head office location and palce of.

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Not surprisingly the current Aer Lingus slot portfolio is evenly distributed throughout the day, with departures from 06:50 through to 22:00 and arrivals from 08:05 through to 21:15. As such there is a very attractive spread of potential timing available from which to explore potential new routes and additional frequencies for BA. Again, as you would expect, Dublin is currently the best-served of the four markets that Aer Lingus operates with 10 frequencies a day; Cork and Belfast have four each and Shannon has the balancing three frequencies.

Should IAG complete the acquisition then the focus will be around how those slots are used; some will undoubtedly still be used for services to Ireland but everyone realises that the real prize is long-haul usage of those slots.

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Read the rest of this blog at: http://www.oag.com/OAG-Blog/iag-and-aer-lingus-all-about-slots

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