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American Buys London-Heathrow Slot for $31 Million

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Cyprus Airways said it will sell American Airlines its landing slot at London Heathrow Airport on Monday. The airline will receive $31 million for the slot, which will “enhance the company’s liquidity for 2015,” according to a Cyprus news release. (www.frequentbusinesstraveler.com) 기타...

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LGM118
LGM118 2
$31 million for one landing slot seems legit. That said, the immediate image that came to mind was Cyprus Airways taking its lonely little landing slot that it has cherished for years and years to the market, knowing that as much as they want to believe they'll only sell it to someone who will take good care of it, he needs the money and can't afford to pass; Cyprus Airways needs to feed his family and selling the landing slot is the only way to put food on the table.

Incidentally, I'm seriously wondering how AA is going to use this. By my count, they already have three ORD flights, three DFW flights, two MIA flights, an LA flight, and the RDU flight. They're also gaining PHL and CLT from the merger. Anyone have any guesses as to how AA is going to use this?
napos
napos 1
An American 777 PHX LHR alongside the longstanding BA 747 PHX LHR service would be nice. :)
tulrnr
A.A.L. dosen,t even know.
mattwestuk
Didn't they have to give up some LHR slots as part of the settlement agreement with the European Union? The link below gives some commentary on them giving up the PHL-LHR route so this might be how they get it back:

http://milepoint.com/forums/threads/phl-lhr-gone-post-merger.67356/
flyingscotno1
Is there anything that Competition Authorities could look into this deal given BA/AAs large number of slot holdings?

Suspect Cyprus Airways could move flights to Gatwick without too much impact.
JENNYJET
I can assume that Cyprus will relocate to LGW or increase services at BHX. They need the slots to service some British military flights to the sovereign UK bases on the island.
Next question is why the purchase of this slot and is there a potential hostile merger or acquisition of United?
n9341c
n9341c 1
$31M for ONE landing slot. Gosh I can't understand how they went bankrupt.
jjsifo
$31M..............ah well.

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