IAG CEO Update

Transcript

Willie Walsh:So Level has been fantastic. We announced the launch of Level on the 17th of March, we started flying on the 1st of June. Bookings have just been way in excess of what we expected, so we've definitely tapped into something that wasn't being served in the market, and we know from the customer base that we have that these are new customers. So we're not even cannibalising our own business, which we thought we might do. So it's been really, really good. So we're very encouraged. We're expanding the business and we'll have a new team in place to run it as a separate entity by the end of this year. So we're just finalising that process at the moment. We're pleased that we're having good discussions with Ryanair to connect with Aer Lingus at Dublin Airport. I think there's a good business case for it. We've always argued that if the customer wants to do it, then we should try and make it easy for the customer. So we've had, I have to say, very productive discussions with Ryanair, and I'd be optimistic that we will have something in place for next summer. The challenge has been on the IT front, but credit to the Ryanair and Aer Lingus team, they've come up with a smart way of dealing with that. And, you know, I think watch this space is what I would say, but it's definitely an opportunity for Aer Lingus. Thank you. In relation to Gatwick and easyJet, no. I don't actually see that that's going to make a big difference, particularly when you're asking the customer to pay a fee. So this idea that you can connect long haul to short haul, but it's at the customer's cost to do it, it's an interesting concept. If it works, well then maybe the industry will look to change the business model, but no, we won't be participating in anything at Gatwick. What about Ryanair? The collapse of Monarch, which I think didn't come as a surprise to a lot of people in the industry, has clearly given an opportunity to a number of airlines. British Airways is looking at increasing its operations at Gatwick. The BA short-haul and long-haul network at Gatwick is working very well for us, and we see an opportunity to expand and fill the gap that has been left by the collapse of Monarch. I know there are a lot of other airlines who are looking at that. From a consumer point of view, consumers aren't going to lose out in that whatever capacity was being supplied by Monarch will be replaced, certainly at Gatwick. I think less so in places like Birmingham, but then Jet2 has a big operation there, so we're primarily looking at an opportunity to expand British Airways at Gatwick. The Delta-Virgin-Air France-KLM doesn't come as a surprise. This is clearly a Delta decision. Delta has a very close relationship Particularly with KLM. You know, it goes back to the Northwest KLM days. I think that's probably one of the most enduring relationships ever, and you can see that Delta wants to try and secure that. So entering into this new arrangement where they bring Virgin to the table as well, I think clearly makes a lot of sense for Delta, and I'm sure it will work for the partnership. And it'll be interesting to watch to see, do they do anything innovative? I don't see it. I think it's just a strengthening of a partnership that exists one between Delta and Virgin, and then separately Delta, Air France-KLM is just cementing it all together. Vueling is having a great performance this year, still challenged by ATC. We had that strike in Paris just a couple of days ago— sorry, French airspace just a couple of days ago, which forced them to cancel 90 flights. You know, this is terrible. These air traffic control strikes really do cause huge disruption. But operationally, its performance is great. They're best in class at Barcelona, outstripping all of the competitors. Their financial performance is excellent. So they've done everything we've asked them to do, and we're very confident— always have been confident in their future. But given what the team has done under the leadership of Javier, it's been a great success. I'm very, very pleased. Thank you.

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