An update on BA developments from IAG’s Capital Markets Day

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British Airways Logo (Image Credit: British Airways)
British Airways Logo (Image Credit: British Airways)

International Airlines Group is holding its annual Capital Markets today, Friday 7 November 2014.

Whilst the presentations are very much aimed at the investor community (This is the full slide deck – all 144 slides!.) there are some useful updates for passengers.

Here are some small items of news we’ve gleaned so far, principally concerning London Heathrow

As expected, BA will move out of Terminal 1 in 2015 and consolidate its operations in Terminals 3 and 5.

Work will also be underway to improve the experience for connecting passengers at Terminal 3.

All departures from Terminal 3 are now from boarding gates with coaching from remote stands eliminated.

Automatic check-in is to be introduced for domestic flights (this was trialled on some short haul routes some time ago).

Self baggage tagging at check-in and automated boarding gates are also to be introduced.

There is likely to be limited growth in BA’s long-haul network in 2015, beyond what new routes have bed announced, namely Kuala Lumpur.

The Boeing 767 is to be retired from BA’s long-haul fleet by 2016, to be replaced by the Boeing 787. A small number of Boeing 767s will operate in a short-haul configuration until 2018. This will then leave all short haul flights operated with Airbus A319/320/321 aircraft.

BA referred to its Oneworld alliance partner Qatar Airways and a potential codeshare partner in China providing growth opportunities. However, it has to be said these have been mooted for some time.

The presentation also included a section on Avios which is the currency used by the British Airways Executive Club and Iberia Plus frequent flyer programme. It is also the name of a travel regards programme in its own right, formerly known as Airmiles. This is likely to be a growth area in the coming years with more potential airlines joining the programme, in addition to Meridiana Fly and FlyBe.

We’ll update this page further with any more points of interest from the presentations and Q&A session.

IAG orders up to 120 Airbus A320 aircraft for Vueling

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International Airlines Group (IAG) has today confirmed that it has secured both firm orders and options for up to 220 Airbus A320 short haul aircraft for its subsidiary airlines British Airways, Iberia and Vueling.

Up to 120 of these aircraft are designated for its short-haul low cost carrier subsidiary Vueling. The new aircraft will enable Vueling to replace some of its existing aircraft and expand its network.

The Vueling order comprises 62 firm orders which include 30 A320ceo and 32 A320neo aircraft and options for a further 58 aircraft. The firm orders will be delivered to Vueling between 2015 and 2020.

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IAG still intent on pursuing 100% ownership of Vueling

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International Airlines Group is clearly not satisfied with owning over 90% of Vueling.

Although this gives IAG full control of Vueling for all practical and accounting purposes, the airline group is clearly intent on having 100% ownership of Vueling. On Friday, IAG made a further offer for the remaining 9% of Vueling’s shares listed on the stock exchange in Spain.

As stated before, IAG has been coy about its intentions regarding Vueling, save for stating it will remain a separate subsidiary in the IAG group. However, IAG is clearly very keen on pursuing full ownership and control of the airline.

IAG 1st Quarter Results – Analysts Q&A Session

London Air Travel » International Airlines Group » Page 5

British Airways / Iberia Logos
British Airways / Iberia Logos (Image Credit: British Airways / Iberia)

As previously mentioned, International Airlines Group published its 1st quarter results in Friday.

On the morning of the announcement, as per standard protocol, it held a webcast for analyst and the question and answer session that follows provides a lot of useful insight into current strategic developments at the airline group.

Here is a summary of some points of interest from the call:

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IAG publishes its 1st Quarter financial results

London Air Travel » International Airlines Group » Page 5

British Airways / Iberia Logos
British Airways / Iberia Logos (Image Credit: British Airways / Iberia)

International Airlines Group (IAG) has just published its financial results for the first quarter of the year.

Once again, the results are a tale of two airlines with a stark divergence in the performance of British Airways and Iberia. IAG made an overall operating loss of €278 million. However, IAG had to also take another exceptional charge of €311 million in connection with the restructuring of Iberia. This is in addition to the exceptional charges and provisions IAG took at the end of 2012. The overall loss after tax for the quarter was €630 million.

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