Dublin Airport: why IAG wants Ryanair's second largest base to be its fifth European hub

In terms of markets, IAG's bid for Aer Lingus is based on the Irish airline's growing North Atlantic network, its superior links to the UK regions and, to a lesser degree, its continental European presence. In addition to the discussion of Aer Lingus itself, the bid has thrown the spotlight on the strategic merits of Dublin Airport and the competitive battles between contrasting airline models.

Ireland and its largest airport, Dublin, have long punched above their weight in aviation terms. Ireland is in the world's top 40 aviation nations ranked by airline seats, but is not even in the top 160 by population. Dublin is only Europe's 25th largest airport but it is home to its largest airline, Ryanair, by passenger numbers.

Between them, Aer Lingus and Ryanair - a low cost/legacy hybrid and one of the purest LCCs around - dominate Dublin, whereas the big European legacy airline groups have small market shares and the branded alliances are currently almost non-existent. The airline mix at Dublin is rounded out by regional airlines CityJet and Flybe, in addition to fast-growing global super-connectors Emirates, Etihad and Turkish Airlines.