scotron11
Posts: 1181
Joined: Tue Feb 10, 2004 4:54 pm

SAS Wants Out Of Deal W/BMI

Fri Nov 11, 2005 9:33 am

SAS is keen to dispose of their 20% stake in BMI and is determined to withdraw from its loss-making joint venture with BD & LH on European routes as soon as the contract can be dissolved.

Jørgen Lindegaard, SAS chief executive, said in an interview with the Financial Times, that the joint venture had already cost SAS alone SKr1.5bn (£105m) in losses between 2000 and September this year. A loss for SAS from the venture of SKr450m was expected this year.

Under the terms of the so-called European Co-operation Agreement (ECA), which came into effect in January 2000 and runs to the end of 2007, the three airlines operate a revenue and profit-sharing joint venture comprising their European short-haul routes to and from Heathrow and Manchester.

Of the three carriers BMI operates the largest number of routes covered by the ECA, but it takes only 10 per cent of any losses, while Lufthansa and SAS each carry 45 per cent.

“It is a stupid contract, but there is nothing I can do about it,” said Mr Lindegaard.
 
mika
Posts: 2810
Joined: Thu Jul 27, 2000 7:53 am

RE: SAS Wants Out Of Deal W/BMI

Fri Nov 11, 2005 10:20 am

SAS should get out of it as soon as possible, there's no reason in the world to remain in that partnership if the only thing it brings SAS is losses.
 
scotron11
Posts: 1181
Joined: Tue Feb 10, 2004 4:54 pm

RE: SAS Wants Out Of Deal W/BMI

Fri Nov 11, 2005 10:29 am

Quoting Mika (Reply 1):

SAS should get out of it as soon as possible, there's no reason in the world to remain in that partnership if the only thing it brings SAS is losses.

Michael Bishop must be laughing all the way to the bank! By the by, could be a reason to step out of STAR and into OneWorld for SAS?
 
Kahala777
Posts: 1513
Joined: Sat Apr 16, 2005 7:28 am

RE: SAS Wants Out Of Deal W/BMI

Fri Nov 11, 2005 10:35 am

Bets are on for SAS to by the way of SkyTeam. Seeing as that SkyTeam offers the only North American to Scandi-Land airlines aside from SAS itself.

KAHALA777
 
AF022
Posts: 1633
Joined: Fri Dec 26, 2003 10:41 pm

RE: SAS Wants Out Of Deal W/BMI

Fri Nov 11, 2005 11:12 am

MH operates EWRARN. Maybe MH will join as well?
 
ZKOJH
Posts: 1453
Joined: Mon Sep 13, 2004 9:51 am

RE: SAS Wants Out Of Deal W/BMI

Fri Nov 11, 2005 11:27 am

another nail in BD's coffin, about time they get there act togehter, before someone puts the last nail in, and it gets burried..  Embarrassment
Vietnam time..