IAG signs MoU with Ryanair over Heathrow slots

Victoria
By Victoria December 18, 2012 23:18

IAG signs MoU with Ryanair over Heathrow slots

In order to appease the European Commission’s concerns over its proposed takeover of Aer Lingus, Ryanair has signed a memorandum of understanding (MoU) with International Airlines Group (IAG), parent of British Airways, concerning Aer Lingus’s slots at London Heathrow Airport.
Under the terms of the deal, British Airways would lease the Aer Lingus slots and after a three- to five-year period, it would have the right to buy and redeploy the slots.
Although such an agreement could solve the Commission’s concerns that Ryanair’s acquisition of Aer Lingus would create a monopoly on routes between the UK and Ireland, this agreement would effectively hand BA a monopoly on four of the routes to Dublin.
A further complication of this deal will be Virgin Atlantic’s agreement with Aer Lingus to wet lease four Airbus A320 aircraft to operate Virgin’s domestic routes between London Heathrow and Manchester, Edinburgh and Aberdeen.

Victoria
By Victoria December 18, 2012 23:18
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