“The high times of alliances are over... they will be replaced
by joint ventures, that is the model for the future” CHRISTOPH MUELLER
Aer Lingus owns more than half of its fleet of 48 aircraft
Lingus, is unlikely to increase its shareholding soon while it digests its other, more major investments. Mueller says, however, that the two carriers’ commercial relationship has outperformed “on both sides”. He outlines Aer Lingus’s attractions to
an investor and its expansion strategy. “We have a business that is scalable and
we have a healthy balance sheet. Our slot portfolio in many airports, Heathrow, JFK, Amsterdam, is very attractive.” He adds: “We would like to grow
inorganically, but that doesn’t mean we want to buy an airline.” He says Aer Lingus, with its low cost base, could instead expand
that having only BA, Lufthansa and Swiss, plus the US and Middle East carriers making up the remaining 20%, is a sign that he is right about the passenger-friendly modular approach. “Our business model is scalable, easyJet
is migrating towards it,” he says, adding that the US carrier JetBlue, famous for its seatback TVs on its short-haul aircraft, is its “closest ally” in this respect. Mueller is clearly a fan of the optional
extras – he has just introduced Wi-Fi on to long-haul flights and will extend it to short haul next summer. Having sorted the basics, he is starting to have fun. The near future may bring some surprises.
Optional extras, including Wi-Fi, are increasingly becoming part of the Aer Lingus passenger experience
by replacing another carrier on a section of its routes that were unprofitable – long or short haul. There is a track record of similar
arrangements here, like the now defunct partnership with United Airlines to operate its Washington-Madrid route and the deal with Virgin Atlantic to fly its Little Red domestic connections. Mueller says the
extra four A320s flown for Virgin bring unit costs down. Ryanair and Aer Lingus have 80% of the
market in Ireland and Mueller argues that he has beaten off competition because others cannot compete with his cost base. He points out that Aer Lingus owns more than half its fleet of 48 aircraft, with its only debt being the remaining leases. He says
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