Articles tagged “iag”

Is Level a legitimate attempt by International Airlines Group to build a long-haul, low-cost carrier? Or is it a "fighting brand" designed to make Norwegian Air's expansion more challenging? Time will tell.

It's been a quick turnaround for IAG, which only announced plans for a low-cost, long-haul airline in December. The legacy carriers have clearly been spooked by Norwegian's initiatives and are now working to compete in this new landscape.

Lufthansa is investing in direct booking connectivity with corporations (and the commercial initiatives to make them happen). The technological and commercial Tarmac being laid may pave the way for others, like IAG's British Airways.

Some old-school companies talk about embracing start-up thinking without knowing what that really means. This, though, is what they wish it looked like in practice.

International Airlines Group likely has no choice but to try to take on Norwegian in London, Barcelona and elsewhere. The company likely learned its lesson from Ryanair and EasyJet.

Two-tiered pay scales may seem like a good idea in the beginning. But what happens six years later, when one employee group earns far more than another, even though both do the same job? British Airways is learning how hard it is to keep everyone happy.

Willie Walsh is not afraid to make decisions that anger employee unions and disappoint some passengers. That may seem like poor strategy, but it's a big part of the reason that International Airlines Group is in better shape than most of Europe's other airlines. Sometimes, an executive must make unpopular decisions to ensure the long-term success of a business.

Over the years British Airways has quietly built up a substantial package holidays business and parent company IAG is reaping the benefits. Whether this can be replicated at other parts of the business, is another matter.

Yes, Brexit is a big deal politically in the United Kingdom. But the decision should not affect the nation's airlines much.

If the UK economy moves into recession, companies will look to slash their corporate travel budget. Full service carriers like British Airways are likely to take the bigger hit, which could benefit low-cost airlines like easyJet.