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Topic: LH: Bmi Must Be Turned Into A Profit Maker
Username: TFFIP
Posted 2008-12-22 00:25:29 and read 5346 times.

Deutsche Lufthansa has made no concrete decisions about buying the remaining 20 percent stake in its British airline unit BMI, Lufthansa's Chief Executive Wolfgang Mayrhuber told a German newspaper.

Before any further decisions are made, BMI must first be turned into a profit-making airline, Mayrhuber said in an interview with Boerzen-Zeitung printed on Saturday.

http://www.iht.com/articles/reuters/...ess/OUKBS-UK-GERMANY-LUFTHANSA.php

- if LH push on with plans for ownership of SK, would that not save a new transaction to get the extra 20% of BD, wouldn't it just come as a part of any LH/SK deal?

- what are the best ways to turn this airline around?

Topic: RE: LH: Bmi Must Be Turned Into A Profit Maker
Username: AF022
Posted 2008-12-22 08:29:14 and read 4809 times.

BD seems to have no focus. Are they intercontinental? Are they feed? Are they LCC? Are they BA? VS? FR?

Where is BD making money? Losing the most money?

With their valuable slots there must be a way for them to make money on lucrative routes. Although I don't know much about them I would bet that they do well where traffic tends to high-yield (DME, RUH, DMM, JED) or where competition is light (FNA, IKA, TLV). I would think they are doing poorly on short-haul flights (AMS, BRU) or in light markets where they face a stronger competitor (BEY, ADD).

I think they are facing the problem of lack of the right aircraft. They are probably doing well to FNA, but they don't have many 757s to do this, do they?

And shouldn't they be cooperating more with Star and other carriers? If they are not making money to CAI or ADD wouldn't it be better to put their codes on MS and ET and use the aircraft to increase frequency to profitable routes? Wasn't there talk of them doubling TLV frequencies?

Topic: RE: LH: Bmi Must Be Turned Into A Profit Maker
Username: PurpleBox
Posted 2008-12-22 09:03:05 and read 4739 times.



Quoting AF022 (Reply 1):
BD seems to have no focus.

LH will focus them!

PurpleBox.

Topic: RE: LH: Bmi Must Be Turned Into A Profit Maker
Username: Humberside
Posted 2008-12-22 09:27:06 and read 4665 times.



Quoting AF022 (Reply 1):
Although I don't know much about them I would bet that they do well where traffic tends to high-yield (DME, RUH, DMM, JED)

With BA going back to Saudi it will be interesting to see if bmi can survive in the market. Jeddah looks to be the weakest link with bmi going via RUH but BA non-stop (and more frequently I think). I think bmi have a slight frequency advantage on RUH. BA arent restarting DMM but bmi have always combined it with another destination so probably couldn't survive alone

Quoting AF022 (Reply 1):
I would think they are doing poorly on short-haul flights (AMS, BRU

Though these do provide feed for Star partners (dont know how much LH value that). BRU might be safe with Brussels Airlines going to Star and no doubt their codeshare with BA ending. SN will want to offer more in the LON market than a twice daily (I think) LGW service. Codesharing on bmi's LHR-BRU could be a way to do this

Quoting AF022 (Reply 1):
If they are not making money to CAI or ADD wouldn't it be better to put their codes on MS and ET and use the aircraft to increase frequency to profitable routes?

They altready do codeshare with MS on CAI

Quoting AF022 (Reply 1):
I think they are facing the problem of lack of the right aircraft. They are probably doing well to FNA, but they don't have many 757s to do this, do they?

2 B757's that belong to Astraeus

Topic: RE: LH: Bmi Must Be Turned Into A Profit Maker
Username: Shamrock321
Posted 2008-12-22 09:38:59 and read 4627 times.

I think BD are best of concentrating on feeding * flight in/out of LHR the likes of DUB, MAN, EDI, BHD etc.

They have also established themselves well on many of the medium haul routes like CAI, TLV and DME.

I can see a number of the medium haul routes getting the chop eliminating the need for the leased 757s and I think WW has to go aswell.

Also another big problem is Aviance at LHR its a disaster that needs to be sorted ASAP!

Topic: RE: LH: Bmi Must Be Turned Into A Profit Maker
Username: 1peter
Posted 2008-12-22 10:00:35 and read 4571 times.



Quoting Humberside (Reply 3):
2 B757's that belong to Astraeus

Not for much longer........!

Topic: RE: LH: Bmi Must Be Turned Into A Profit Maker
Username: Runway24R
Posted 2008-12-22 10:21:22 and read 4523 times.



Quoting 1peter (Reply 5):

Not for much longer........!

Can you expand on this at all please?

I don't know much about BMI, but they have always struck me as lacking focus. As has already been mentioned they seem to be a bit of every type of carrier with a little long haul, medium and short haul as well as a low cost arm.

As for their future, I can see two areas for them to focus on: Medium niche routes and as a feeder for Star Alliance at LHR. With the sale of GT and Astraeus' moving out of the scheduled market, I would imagine BMI could look at filling some of the voids left by these airlines.

That's just my 2 pence anyway,

Regards, Rob  Smile

Topic: RE: LH: Bmi Must Be Turned Into A Profit Maker
Username: Planesailing
Posted 2008-12-22 17:27:11 and read 4119 times.



Quoting Runway24R (Reply 6):
With the sale of GT and Astraeus' moving out of the scheduled market, I would imagine BMI could look at filling some of the voids left by these airlines.

Are you suggesting a move to some operations from LGW then? As I understand it bmi can be found operating charters from LGW but has no fixed schedule from there. Astraeus used to be a charter airline based there and GT used to be a BA franchise based there.

Quoting Runway24R (Reply 6):

I don't know much about BMI, but they have always struck me as lacking focus. As has already been mentioned they seem to be a bit of every type of carrier with a little long haul, medium and short haul as well as a low cost arm.

Never a truer word said! They also have the problem that when they adjust their business plan, they never give it sufficient time to bed in and turn a profit.

Quoting Runway24R (Reply 6):
Can you expand on this at all please?

I think there were rumours annouced recently that with the A330's moving to LHR that the 757's would be returned.

Topic: RE: LH: Bmi Must Be Turned Into A Profit Maker
Username: MH017
Posted 2008-12-23 01:31:46 and read 3620 times.



Quoting Shamrock321 (Reply 4):
I think BD are best of concentrating on feeding * flight in/out of LHR the likes of DUB, MAN, EDI, BHD etc

Out of AMS, they always have loads of AC connecting traffic, as well as some QR passengers to DOH and India/Far-East...

Topic: RE: LH: Bmi Must Be Turned Into A Profit Maker
Username: 1peter
Posted 2008-12-23 02:03:33 and read 3537 times.



Quoting Runway24R (Reply 6):
Can you expand on this at all please?

From what I understand over the coming weeks the 75's are going to be deployed on different routes to those that they've been operated on over the past few months. I'm led to believe that AMS, EDI, MAN and VCE are on the cards for the 75's in the weeks ahead.......!

Furthermore it would appear that BD are trying to escape from the AEU contract that they're tied into......seemingly they've had some luck as come February they'll only be one 757, but we wait and see!

Topic: RE: LH: Bmi Must Be Turned Into A Profit Maker
Username: TFFIP
Posted 2008-12-23 03:52:55 and read 3330 times.



Quoting 1peter (Reply 9):
From what I understand over the coming weeks the 75's are going to be deployed on different routes to those that they've been operated on over the past few months. I'm led to believe that AMS, EDI, MAN and VCE are on the cards for the 75's in the weeks ahead.......!

I thought BD got the 757 because it had the range and capacity to FNA, ALA that 321 did not. Manchester must have special qualities that we don't hear about normally.

Quoting 1peter (Reply 9):
Furthermore it would appear that BD are trying to escape from the AEU contract

Is it right that there is only 1 757 working at LHR right now? Maybe the other one just went for its annual dust and clean.

In the Meantime, this showed this morning from Virgin:
..."Virgin Atlantic Airways is not interested in acquiring bmi regional or bmibaby and is negotiating with Lufthansa solely about the acquisition of bmi's mainline operation at London Heathrow, Virgin CFO Julia Southern confirmed..."

from:http://atwonline.com/news/story.html?storyID=15108

Of course it also go onwards to say, well, maybe it works out and maybe it doesn't, which seems to be the basis of most of the VS led/ LH ignored statements !

Topic: RE: LH: Bmi Must Be Turned Into A Profit Maker
Username: Runway24R
Posted 2008-12-23 15:52:31 and read 2817 times.



Quoting Planesailing (Reply 7):

Are you suggesting a move to some operations from LGW then? As I understand it bmi can be found operating charters from LGW but has no fixed schedule from there. Astraeus used to be a charter airline based there and GT used to be a BA franchise based there.

I was suggesting that perhaps BMI could look at the void from the UK (not necessarily LGW) to the various "specialist" destinations that Astraeus used to fly to in Africa and Asia as a scheduled carrier before it moved entirely to the charter and leasing area.

Quoting 1peter (Reply 9):
Furthermore it would appear that BD are trying to escape from the AEU contract that they're tied into......seemingly they've had some luck as come February they'll only be one 757, but we wait and see!

I see, thanks for clarifying that. I misinterpreted understood your original comment leading me to think Astraeus were disposing of the two 757s.

Rob

Topic: RE: LH: Bmi Must Be Turned Into A Profit Maker
Username: Tobias2702
Posted 2008-12-24 04:47:27 and read 2517 times.

Wouldn't it be an idea for bmi to concentrate on Near and Middle East as well as on Africa with feeder flights to LHR? They are already serving DUB and AMS, why not start Paris, Rome or Berlin?

Topic: RE: LH: Bmi Must Be Turned Into A Profit Maker
Username: 1peter
Posted 2008-12-24 06:20:26 and read 2386 times.



Quoting Tobias2702 (Reply 12):
why not start Paris, Rome or Berlin?

FCO was dropped a few seasons back now and at the time it was dropped it was only one frequency a day (from memory) in any case.

CDG was again dropped not so long back, BD sited competition issues both in terms of LCC (from the other London airports) and the Paris - London train links that have drawn the flying passenger away.


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