Thursday, January 22, 2009

Aer Lingus / United cooperation deepens

In a deepening of cooperation between the two airlines, Aer Lingus and United today announced a new initiative to commence next year. From March 2010, a new joint venture route will begin serving the city pair of Madrid and Washington Dulles. 
Aer Lingus will provide the operational part of the agreement by supplying the aircraft and aircrew while United will manage the revenue side by providing the marketing and sales on the new daily service, one of the first to launch as part of the 2007 EU-US open skies policy.
Aer Lingus and United Airlines commenced a code share arrangement in October 2008 on services between Ireland and the US. Further expansion and development of the partnership's activities will be jointly assessed and agreed by the Partners and may develop into a broader and deeper joint venture, according to Aer Lingus.
Repsonding to the announcement, Ryanair congratulated Aer Lingus on finding a partner which is weaker and in even worse shape than itself.
Michael O'Leary, CEO of Ryanair said "Aer Lingus and United Airways share many similar traits. They both used to be big in the 1950's and 1960's, but sadly today they are just shadows of their former glory. Both have recently announced losses, job cuts and pay cuts. After months of trawling around looking for partners, it is a sad reflection on Aer Lingus that the best they could come up with is one of the weakest and biggest loss makers in the U.S. airline industry. Given the scale of United's losses there is no guarantee that they will even be around in March 2010 to operate this "partnership".

"It is hard to think of any transatlantic airline losing any sleep at the thought of being faced with the combined weakness of Aer Lingus and United Airlines on the Madrid-Washington route. Today's announcement shows just how desperate Aer Lingus is to find a partner, any partner it can, even if the flights don't start until March 2010. This so called "partnership" with another "loser" like United shows that Aer Lingus has no independent strategy, and no prospect of remaining independent.

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