Aer Lingus


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Aer Lingus

  1. 1. Benedict Gombocz
  2. 2. Background  Aer Lingus=Anglicisation of the Irish Aer Lounges, meaning “air fleet”.  Ireland’s national flag carrier; operates mainly a fleet of Airbus aircraft that serves Europe, North Africa, Turkey, and North America.  Oldest existing airline in Ireland, and its second biggest, after low-cost competitor Ryanair.  Its main office is located on the property of Dublin Airport in Swords, Dublin, Ireland.  Founded in 1936; formerly a member of the Oneworld alliance from 2000-2007.  Even though it does not participate in any alliances, it has codeshares with members of all three major airline alliances (Oneworld, SkyTeam, Star Alliance), and even interline agreements with Etihad Airways, JetBlue Airways, and United Airlines.  Has a hybrid business model and operates a varied fare service on its European and North African routes and full service, two-class flights on transatlantic routes.  More than 29% of Aer Lingus stick is owned by Ryanair; the Republic of Ireland owns more than 25%.  The state once had an 85% shareholding until the Government decided to float the corporation on the Dublin and London Stock Exchanges on 2 October 2006; among the important group corporations are Aer Lingus Limited, Aer Lingus Beached Limited, Aer Lingus (Ireland) Limited and Dornan Insurance Company, Limited, of which all are wholly owned.  Commemorated its 75th anniversary in 2011.  On 26 March 2014, the airline presented its most recent aircraft, which has been painted in the 1960s livery; the crew wore a selection of the old uniforms.
  3. 3. Operating bases and hubs  Operating bases:  Belfast-City  Cork  London-Gatwick  London-Heathrow  Shannon  Hubs:  Dublin
  4. 4. Other facts  Founded 15 April 1936  Commenced operations 27 May 1936  Frequent-flyer program Gold Circle Club  Airport lounge Gold Circle Lounge  Fleet size 47  Destinations 77  Company slogan Great care. Great Fare.  Parent company Aer Lingus Group PLC  Headquarters Dublin Airport, Fingal, Ireland  Key people Colm Barrington (Chairman), Christoph Mueller (CEO)  Revenue +€1,393 million (2012)  Operating income + €69.1 million (2012)  Net income - €40.6 million (2012)  Website
  5. 5. Ownership and structure  Aer Lingus is on the Irish and London Stock Exchanges, under ticker EIL1 on the Irish Stock Exchange and ticker AERL on the London Stock Exchange.  As of March 2014, these are the current shareholdings.  Shareholder  Ryanair Ltd.  Shares: 159,231,025  Interest: 29.82%  Minister for Finance of Ireland  Shares: 134,109,026  Interest: 25.11%  Other investors  Shares: 240,700,039  Interest: 45.07%  Total: 534,040,090  Interest: 100.00%
  6. 6. Aer Lingus Cargo  Cargo division of Aer Lingus.  Uses reserved areas of passenger aircraft cargo-holds.  Accessible on all routes to the U.S. from Dublin and Shannon.  Most European routes and some routes to the UK also offer cargo services.
  7. 7. Aer Lingus Regional  Aer Lingus has a contract agreement with Ireland’s regional airline Aer Arann, under which Aer Arann operates several routes under the Aer Lingus Regional brand, livery, and flight code.  Aer Arann, since April 2012, has not operated any flights under its own RE code; all its old routes have been moved to Aer Lingus with flight numbers in the EI3XXX range.
  8. 8. Head offices  The main office of Aer Lingus is located on the property of Dublin Airport in Fingal, County Dublin.  The 9.9 acre (4.0 ha) head office site is the head office building site, and it includes the main office building, the services annexe, the lolar House, the Mock-Up building, the ALSAA swimming pool, and several other smaller structures and buildings.  Within the Head Office Building is the company main office of Aer Lingus and its subsidiaries, and numerous administrative functions, employees, and car parking services, located in this building; training facilities for Aer Lingus crew and office space are housed in the lolar House and Mock-Up Building.  The main office has proximity to the Ryanair main office.  In 2004, Brian Lavery of The New York Times said that the proximity, depicted by Lavery as “a few parking lots away”, was “a symbol of just how close the competition is to home.”  Aer Lingus announced in 2010 that it gave up its lease on its current main office building to the Dublin Airport Authority, and that it would relocate its employees to Hangar 6 and other buildings on the airline’s property portfolio in 2011.  The airline said that its current main office building, which the International Business Times said had to be renovated, is too big for the corporation’s needs, after the “Greenfield” cost reduction programme.  Aer Lingus signed the deal with the Dublin Airport Authority to give up the leasehold interest in the Head Office Building Site on 8 November 2011.  Aer Lingus paid €22.15 million interest to the DAA; €10.55 million were paid over a decade-long period in yearly fees, with both being equal size.  The payments involved a 5% interest rate per annum.  The transfer to Hangar 6, by May 2012, was still not finished.
  9. 9. Retro livery
  10. 10. Foreign offices  Aer Lingus currently operates its U.S. office in Jericho CDP and in Oyster Bay on Long Island, New York.  The airline formerly had its U.S. office in Midtown Manhattan, New York City.  Aer Lingus initially announced in 1997 that it was transferring its North American headquarters to Melville, Town of Huntington on Long Island.
  11. 11. Strategy  Aer Lingus took on a “some frills” strategic approach – a mix between a historic legacy airline and a low-cost carrier.  The difference is the services offered on short-haul and long-haul flights; services are offered free only on the latter.  Compromise with the unions was required for the new strategy; together, they reached a consensus that reduced costs, and a reinvention of the airline was needed if it were to survive.  Unfortunately, the union compromises that came as a result of the negotiations were harmful to the airline’s image.  Nevertheless, by 2003, the wage freeze was lifted, and 3,800 intentional unemployments were with no forced discharge; these factors played a role in the airline’s reported proceeds in 2002, 2003, and 2005, with but a minor loss in 2004.
  12. 12. Codeshare agreements  Aer Lingus has codeshare agreements with these six airlines:  Air Canada  British Airways  Etihad Airways  JetBlue Airways  KLM  United Airlines
  13. 13. The End  YouTube links:  Aer Lingus A320 safety demo:  Aer Lingus A330 Safety Video and Cabin:  Aer Lingus Advertisement ‘You’re Home’: