TRAVEL WEEKLY BUSINESS travelweeklybusiness
AER LINGUS PREPARES FOR FORMAL TALKS WITH IAG AFTER THIRD BID VALUES AIRLINE AT €1.35BN
Ian Taylor
Aer Lingus confirmed it is considering a revised takeover bid from the parent company of British Airways this week, with the airlines ready to enter formal talks. The latest offer from International Airlines Group
(IAG) values the Irish carrier at €1.35 billion, or €2.55 per share. Aer Lingus has previously rejected IAG offers of €2.30 and €2.40 per share. To succeed in a takeover, IAG will still require the backing of the Irish government, which owns 25% of Aer Lingus, and of Ryanair, which owns almost 30%. The Dublin government announced last week that it would take “great care and exercise great caution” in making a decision in the face of political opposition. Ryanair chief executive Michael O’Leary said: “We could sell – but then we could make another offer to buy ourselves.” However, O’Leary’s previous attempts to acquire Aer Lingus have been thwarted by the European Commission. The Dublin government is likely to demand commitments to maintain services between Ireland and Britain. The BBC quoted a senior source in the Irish government saying: “The issue of landing slots at Heathrow is crucial. We have to have flights from Dublin and Cork into a major hub.” Irish opposition transport spokesman Timmy
Dooley urged the government not to sell its stake, saying: “Dumping this stock would be a major mistake.”
IAG confirmed on Tuesday that it planned to “operate Aer Lingus as a separate business with its
EXPEDIA FINALISES ITS $280M TAKEOVER OF SABRE’S TRAVELOCITY
Expedia sealed its takeover of Travelocity in a $280 million deal with the Sabre Corporation last week. The deal followed a “strategic
marketing agreement” between the rival online travel agents (OTAs) in August 2013, which led to Expedia powering the technology platforms for Sabre-owned Travelocity’s websites in the US and Canada. The agreement also gave Travelocity access to Expedia’s supply and customer-service programme. Sabre president and chief executive Tom Klein
PEAKS A WATCH
A weekly snapshot of peak season sales from analyst GfK
Summer 2015 sales in week to January 17
Volume v same week 2014
Aer Lingus is Heathrow’s third-largest operator
“Dumping this stock would be a major mistake” — Timmy Dooley
own brand, management and operations, continuing to provide connectivity to Ireland”. Aer Lingus would join IAG and the Oneworld alliance. The group’s chief executive Willie Walsh, who ran Aer Lingus between 2001 and 2005, is likely to give assurances that a deal would not affect connections between Dublin, Cork and London. IAG already owns BA, Iberia and Vueling, and
acquired the former BMI from Lufthansa in 2013. Acquiring Aer Lingus would increase BA’s dominance at Heathrow, where the Irish carrier has 23 pairs of take-off and landing slots and is the third-largest operator.
described the decision to sell Travelocity as “a logical next step for us both”. He said: “Our primary focus at Sabre is to provide software solutions to our global airline, hospitality and travel agency customers.” Expedia president and chief executive Dara
Khosrowshahi added: “Travelocity is one of the most recognised travel brands in North America, offering thousands of destinations to more than 20 million travellers a month.” Expedia and Travelocity accounted for more than half the US OTA market in 2012, with Expedia reported to have a 40% share and Travelocity 16%. With Orbitz and
Priceline (parent of
Booking.com), they controlled 95% of US OTA turnover. Sabre sold UK OTA
lastminute.com to
Bravofly last April. 29 January 2015 —
travelweekly.co.uk • 103 -1% Packages v same week 2014 +1% Average selling price -£10
Summer 2015 sales for season to date
Volume
+2% Packages
+4%
Winter 2014-15 sales in week to January 17
Volume
-6% Egypt
+18%
KEEP UP WITH THE LATEST NEWS AND ANALYSIS ABOUT THE BUSINESS OF TRAVEL BY LOGGING ON TO
TRAVELWEEKLY.CO.UK
S
“The decision to
sell Travelocity was the logical next step for us both”
S
E
L
➧
➧
➧
➧
➧ ➧
➧
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112