BlueShamu330s
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IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:12 pm

"The parent company of British Airways (BA) has tabled a proposal to buy BMI, its struggling rival, from the German aviation group Lufthansa..."

IAG tables offer for BMI

Rgds
So I drive a 4x4. So what?! Tax the a$$ off me for it...oh, you already have... :-(
 
eaa3
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:15 pm

The regulators will certainly have something to say about this.
 
Danfearn77
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:17 pm

Let's see what VS are made of now! 
Quoting eaa3 (Reply 1):

Completely agree, they won't remain quiet I would have thought.
Eagles may soar high, but weasels dont get sucked into jet engines!
 
LHRFlyer
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:25 pm

Quoting eaa3 (Reply 1):
The regulators will certainly have something to say about this.

But what's the alternative?
 
deltamartin
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:27 pm

Oh. Interesting.

Quoting eaa3 (Reply 1):
The regulators will certainly have something to say about this.

My first thought too.
 
BlueShamu330s
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:28 pm

Quoting eaa3 (Reply 1):
The regulators will certainly have something to say about this

I suspect the regulators will want to appear to do due dilligence, but in this case there appears to be no better option than IAG.

Rgds
So I drive a 4x4. So what?! Tax the a$$ off me for it...oh, you already have... :-(
 
fcogafa
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:31 pm

I like the comment that VIR are 'desperate' to buy BMI...

Well it looks like IAG have called their bluff on it. Time for VIR to put up or shut up I think.
 
wilco737
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:33 pm

Quoting fcogafa (Reply 6):
Time for VIR to put up or shut up I think.

I think they will make an offer as well soon. They have to look for some partner to stay strong. Maybe even join the star Alliance then.

wilco737
  
 
777way
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:36 pm

Hope Virgin gets them, I want to see VS expand.
 
richardw
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:38 pm

Could a 'regulator' say that if the deal went through, a condition might be some former BMI Uk domestic flights must retain star alliance codes or interlining at LHR?
 
BlueShamu330s
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:41 pm

So I drive a 4x4. So what?! Tax the a$$ off me for it...oh, you already have... :-(
 
fcogafa
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:42 pm

It will probably end up with IAG buying BMI but having to surrender some of the slots to its competitors, as usual.

That will give VIR a chance to show if it really wants to expand, although as stated in a recent thread, their slot use at LHR has actually declined over the last few years.
 
lhr380
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:42 pm

Quoting richardw (Reply 9):
Could a 'regulator' say that if the deal went through, a condition might be some former BMI Uk domestic flights must retain star alliance codes or interlining at LHR?

BA and IB already interline with most airlines at LHR, including BD VS CO/UA and LH so interlining with a star airline is no problems at all.

Good on IAG, BD need to be sorted out by someone that will actually make a difference. LH dont seem to have done that.
(The views on this site are my own and no one elses)
 
mogandoCI
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:49 pm

wouldn't LH have enough shares in BMI to have a meaningful say in it ?
 
heebeegb
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:50 pm

what % of slots do KLM have at AMS, AF at CDG and LH at FRA out of interest?
 
fcogafa
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:55 pm

as stated in the article in a rather back handed way...

================================
Acquiring BMI would give IAG more than half of all take-off and landing slots at the airport and strengthen BA’s grip on one of the world’s most important transport hubs.

That said, Lufthansa has 66% of the slots at Frankfurt's main airport, while Air France-KLM has 59% at Charles de Gaulle in Paris and 57pc at Schiphol in Amsterdam.
================================
 
heebeegb
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:56 pm

Sorry, answer my own question

Lufthansa has 66pc of the slots at Frankfurt’s main airport, while Air France-KLM has 59pc at Charles de Gaulle in Paris and 57pc at Schiphol in Amsterdam.

BA with BMI would have less than all these 3 so would they have any problem getting approval?
 
lhr380
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:57 pm

Quoting heebeegb (Reply 14):
what % of slots do KLM have at AMS, AF at CDG and LH at FRA out of interest?

It tells you in the article

Quote:
That said, Lufthansa has 66% of the slots at Frankfurt's main airport, while Air France-KLM has 59% at Charles de Gaulle in Paris and 57pc at Schiphol in Amsterdam

BA/IB would hold I think it says 55% of the slots at LHR, lower then the amount of the other 3 major powers in Europe at their own hub airports
(The views on this site are my own and no one elses)
 
joelyboy911
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 12:57 pm

Interesting that the article states that IAG is also interested in TAP - why are they so keen on:

a) buying up Star Alliance members?
b) buying up competing rather than complementary airlines?

Considering that BA and BD serve similar markets, and so do IB and TP, it seems odd to me that IAG doesn't look to new geographic areas. This consolidation in Iberia and Britain is interesting, but they already dominate those regions. Why aren't they looking at Northern, Central and Eastern Europe (considering the EU is the only place were they can easily hold large ie. controlling, shares of airlines.). Some consolidation is good, but buying up all the competition doesn't look too good for PR reasons, and it would seem they are missing an opportunity elsewhere. Why not use their size and economies of scale to outmuscle the competition, rather than spending the money to amalgamate them?

Of course I understand BD has value in LHR slots, which BA needs, but IB-TP delivers no such value, unless the LIS hub means something to the group.

I would have thought AY, AB would be more likely takeover/investment opportunities. I also wonder if they will step foot in the LCC market at some point too, though those based in the British Isles certainly would seem to come with too much political baggage from people associated with the brand (Stelios and O'Leary).

As an aside, I wonder if BE is a target for more IAG investment?
Flown: NZ, NY, SJ, QF, UA, AC, EI, BE, TP, AF
 
AA787
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 1:02 pm

Quoting joelyboy911 (Reply 18):
b) buying up competing rather than complementary airlines?

Well... when you buy a competing airline, you sorta make it a complementary airline dont you?
ET In NYC
 
lhr380
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 1:03 pm

Quoting joelyboy911 (Reply 18):
b) buying up competing rather than complementary airlines?

TAP would offer Oneworld access to some markets it does not currently access from Europe and would compliment the current offering from BA/IB/AA and LA who operate to South America.

Quoting joelyboy911 (Reply 18):
a) buying up Star Alliance members?

Why not. If an airline is up for sale, or putting out the feelers?
(The views on this site are my own and no one elses)
 
richardw
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 1:04 pm

Quoting joelyboy911 (Reply 18):
I also wonder if they will step foot in the LCC market at some point too,

If you mean BA as they, BA has already been there, it was called Go-Fly.
 
fcogafa
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 1:05 pm

Buying near neighbours is a practice that has been established by DLH acquiring SWR, SAB and AUA so there is obviously some advantage in it
 
C010T3
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 1:05 pm

Quoting fcogafa (Reply 11):
but having to surrender some of the slots to its competitors

Maybe a sale would involve all the slots that couldn't be absorbed by BA because of antitrust restrictions to remain with LH.
 
LHRFlyer
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 1:06 pm

Quoting mogandoCI (Reply 13):
wouldn't LH have enough shares in BMI to have a meaningful say in it ?

They own 100% of bmi. LH decided to put it up for sale.
 
C010T3
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 1:16 pm

Quoting heebeegb (Reply 16):
BA with BMI would have less than all these 3 so would they have any problem getting approval?

Because they're reaching that percentage through acquisition rather than through organic growth.
 
Byrdluvs747
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 1:19 pm

Quoting joelyboy911 (Reply 18):
Considering that BA and BD serve similar markets, and so do IB and TP, it seems odd to me that IAG doesn't look to new geographic areas.

I agree. As I posted in the OW thread, I really would like to see IAG make a move for AZ. If they can't get Alitalia, then go for IG.
The 747: The hands who designed it were guided by god.
 
BrianDromey
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 1:24 pm

Quoting joelyboy911 (Reply 18):
Considering that BA and BD serve similar markets, and so do IB and TP, it seems odd to me that IAG doesn't look to new geographic areas.

I would disagree with you, all of the mentioned airlines add something to the IAG group.

BA has a wide range of route, serving major markets in the UK, EU and US, particularly.
BD has a limited range of routes serving some UK destinations, some LH/*A group Hubs and Mid-Eastern/Africa Cities. The short haul network will probably be culled, but a lot of the mid-haul stuff might remiain.
IB - Serves European, Mediterranean and Latin America markets, poor representation in Brazil though.
TP - Strong Brazil network.

I can see BA buying the whole group, BD becomes part of BA, WW may get merged as Vueling UK and BD Regional get absorbed into CityFlyer. Kinda neat, really.
Next flights: MAN-ORK-LHR(EI)-MAN(BD); MAN-LHR(BD)-ORK (EI); DUB-ZRH-LAX (LX) LAX-YYZ (AC) YYZ-YHZ-LHR(AC)-DUB(BD)
 
skipness1E
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 1:30 pm

Quoting eaa3 (Reply 1):
The regulators will certainly have something to say about this.

No they won't really, you're thinking of British Midland as was, not the BMI shell that remains. Good luck to all at BMI and let's hope that IAG can save as many jobs as realistically possible, there's precious little other option. It's a fantasy to suggest that a contracting dysfunctional Virgin is going to turn around BMI where Lufthansa failed hands down. TIme to get real and make sure no one loses their mortgage over this.

[Edited 2011-10-14 06:33:53]
 
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Richard28
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 1:43 pm

Quoting fcogafa (Reply 6):
Well it looks like IAG have called their bluff on it. Time for VIR to put up or shut up I think.

   would love VS to satrt a short haul from LHR, with a Virgin America / Virgin Australia type product... would shake things up... but cant help but feel they wont have the nerve, and their bluff has been called.

Quoting BrianDromey (Reply 27):
WW may get merged as Vueling UK

doubt it... BMI baby operates classic 737's, and would require major investment to keep it flying in the medium term... this operation would either be closed down, or sold off... probably for a cheap price, as a lot of liabilities could be culled with it.

Quoting BrianDromey (Reply 27):
BD Regional get absorbed into CityFlyer

Again, doubt it, BA City Flyer is focussed on LCY, and BA Connect is a thing of the past, why re-kindle something that was dismantled years ago, ? logical answer for this one is a sell off to fly-be.
 
LondonCity
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 2:04 pm

Quoting Richard28 (Reply 30):
would love VS to satrt a short haul from LHR, with a Virgin America / Virgin Australia type product... would shake things up... but cant help but feel they wont have the nerve, and their bluff has been called.

VS had its chance years ago with its LCC Virgin Express which flew ex-LHR to BRU and, I believe, it also operated from STN to Berlin. But seemingly it never worked in the UK market.
 
fcogafa
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 2:12 pm

And they tried the package market as well, with Virgin Sun. Plus the cargo market jointly with MAS kargo.

They turned out well, too.


Of course this whole thread stems from a source that said VIR was close to merging with DAL a few months ago....

[Edited 2011-10-14 07:16:39]
 
bennett123
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 2:16 pm

If they have to give up slots, would IAG chose the slots.

Could slots be sold to an alliance partner.
 
richardw
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 2:30 pm

Will BA eventually want gates in LHR T2 if it acquires BMI?
 
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SKAirbus
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 2:53 pm

First of all, I think that if IAG's offer is accepted, we will see the end of BMI. I cannot imagine that IAG will want to keep two seperate brands at LHR.

This is what I see happening if the bid is successful:

- Critical evaluation of the BMI route network to ascertain whether the routes will work within the IAG network.

- BMI dissolved and all resources integrated with British Airways at LHR. This would most likely involve redundancies.

- Ahead of dissolution, BMI would leave Star Alliance.

- Aircraft repainted and refitted to BA specifications. A330 goes to Iberia, or is sold off.

- Due to space constraints at T5, extra capacity will need to be sought, either by obtaining further rights to T3 or by retaining an operation from T1 for certain routes. However, this will spread BA over 3 terminals and we'll be back to pre-T5 confusion!

- BMI Regional operations will either be dissolved and aircraft sold/returned to lessors OR BA could integrate the fleet with BA CityFlyer and set up a feeder network from LHR, OR return to serving other airports like BHX or MAN with a more comprehensive network.

- BMI Baby will either be sold off or dissolved. I can't see IAG retaining it considering the failure of BA's earlier attempt, Go. However, there could be scope for introducing a UK division of Vueling and dump the 737s.

In the most extreme situation all routes will be dropped, a few A32X will be kept for BA and all that remains will be the lucrative slots at LHR.

Anyway, who knows what may happen... But that was just my own thoughts about what could happen in the event the bid is successful.
Next Flights: LHR-OSL (738), OSL-CPH (320), CPH-LHR (321), LHR-HEL (359), HEL-LHR (359)
 
skipness1E
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 2:55 pm

Quoting richardw (Reply 34):
Will BA eventually want gates in LHR T2 if it acquires BMI?

T2 is for STAR Alliance, Oneworld is T3, so any T5 overflow would presumably make it's way to T3. Given that there's a fair amount of room on the ROI pier that BA use for bussing, they have the capacity already, just need to shuffle Aer Lingus along a bit.
 
masseybrown
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 2:56 pm

The verb "to table" has opposite meanings in the US and the UK. Just to confirm, the OP means that IAG has offered a proposal, subject to further definition, to acquire BMI?
 
vv701
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 2:57 pm

Quoting lhr380 (Reply 17):
BA/IB would hold I think it says 55% of the slots at LHR, lower then the amount of the other 3 major powers in Europe at their own hub airports

Slot coordinator Airport Coordination Ltd report that BA held 4,040 (42.4 per cent), IB 154 (1.6 per cent) and BD 800 (8.4 per cent) of the 9,254 weekly LHR slots at the start of the Summer Season 2011. The total holding of the three combined would therefore be 52.4 per cent of the total.

When comparing this total with the figures quoted by Sky for LH at FRA (66 per cent) note that, unlike for AF/KL at CDG (59 per cent) and AMS (57 per cent) there is no mention of the other members of the Lufthansa Group. Their activities at FRA are likely to push the LH Group figure towards if not above a pretty substantial 70 per cent.

With the IAG total LHR slot holding (including BD) at 52.4 per cent this is approximately equivalent to UA's slot holding at their home hub, ORD. It would be significantly lower than the slot holding of any other major international airline at their home hu. These range from the upper 50s (as at AMS and CDG), through the mid 60s (as at FRA into the lower 70s (as with DL at ATL).

From these figures it is clear that in terms of natural justice there will not even be any inquiry into a possible take-over of BD by IAG on the basis of LHR slots. After all LH were allowed to increase their 66 per cent holding of FRA slots not only when they bought LX but also when they bought OS and then SN.

However if the authorities consider a 52.4 per cent holding of LHR slots to be unacceptable they will clearly need to do something about the slot holdings at other European hub airports where the slot holdings of the resident aiurlines are much higher.


Quoting joelyboy911 (Reply 18):
Interesting that the article states that IAG is also interested in TAP - why are they so keen on:

a) buying up Star Alliance members?
b) buying up competing rather than complementary airlines?

LH have publicly announced that BD is for sale. The Portugese Government have asked for bids for TP. So a more accurate reflection of the situation might be to ask:

"Why are so many Star Alliance airlines up for sale."

or

"Why have no other Star Alliance airlines expressed an interest in buying BD and TP?"

As the relationship between airlines in the oneworld alliance, as in the Star Alliance, is close, if IAG were to buy, say, AY, the first most of us would know about would be when the sale was all but complete, not when inquiries or negotiations started.
 
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dutchflyboi
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 3:04 pm

Quoting MasseyBrown (Reply 37):
The verb "to table" has opposite meanings in the US and the UK. Just to confirm, the OP means that IAG has offered a proposal, subject to further definition, to acquire BMI?

That is correct
 
vv701
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 3:20 pm

Quoting SKAirbus (Reply 35):
- BMI Regional operations will either be dissolved and aircraft sold/returned to lessors OR BA could integrate the fleet with BA CityFlyer and set up a feeder network from LHR, OR return to serving other airports like BHX or MAN with a more comprehensive network.

Remember that BA - and hence effectively IAG - owns 15 per cednt of flybe. But if BMI Regional went to flybe then flybe would probably not be interested in the EMB145s. I believe they still have a few ex BA Connect 145s parked up at EXT still looking for new operators.
 
eicvd
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 3:22 pm

Quoting SKAirbus (Reply 35):
First of all, I think that if IAG's offer is accepted, we will see the end of BMI. I cannot imagine that IAG will want to keep two seperate brands at LHR.

The majority of my flights have been with BD, would be sad to see them go. Id love to see BA back here in DUB but I pressume if this acquisition goes through EI will get an extra few slots to increase their DUB flights.

Quoting skipness1E (Reply 36):
just need to shuffle Aer Lingus along a bit.

The sooner that RoI pier is demolished the better!
COYBIB
 
lhr380
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 3:27 pm

Quoting SKAirbus (Reply 35):
I cannot imagine that IAG will want to keep two seperate brands at LHR.

It already does. BA and IB

Quoting SKAirbus (Reply 35):
- BMI Regional operations will either be dissolved and aircraft sold/returned to lessors OR BA could integrate the fleet with BA CityFlyer and set up a feeder network from LHR, OR return to serving other airports like BHX or MAN with a more comprehensive network.

I would like to see BA back in the regional airports. I just don't know how it would work? Ex GLA would be easy as the Cityflyer base is there (Maint etc) But EX EMA and BHX and even ABZ I dont know what would happen. It would be a massive cost to keep bases and aircraft and crew based there.

Quoting SKAirbus (Reply 35):
- BMI Baby will either be sold off or dissolved. I can't see IAG retaining it considering the failure of BA's earlier attempt, Go. However, there could be scope for introducing a UK division of Vueling and dump the 737s.

Even BA mainline LGW could take over some of the slots in Europe and offer more flights from LGW for instance. But looking at the route network, a lot of the the destinations BmiBaby fly are operated already by BA from the London Hubs
(The views on this site are my own and no one elses)
 
babybus
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 3:31 pm

With no disrespect to anyone who works for BMI but I do hope BA do buy them out and get rid of the brand for eternity.

It has never really had a good name, it's hasn't been an airline you can book with confidence with and it has no unique selling point. I'm not sure what its value to the travelling public is.
and with that..cabin crew, seats for landing please.
 
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SKAirbus
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 3:39 pm

Quoting Babybus (Reply 44):
It has never really had a good name, it's hasn't been an airline you can book with confidence with and it has no unique selling point. I'm not sure what its value to the travelling public is.

They have in recent years built up a brand that flies to the middle east and airports not well served from LHR. If they make money for BMI then I think BA could also make a shot with them.

Quoting lhr380 (Reply 43):
It already does. BA and IB

I know that... What I meant was LHR based carriers under same ownership.
Next Flights: LHR-OSL (738), OSL-CPH (320), CPH-LHR (321), LHR-HEL (359), HEL-LHR (359)
 
richardw
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 3:44 pm

Bmibaby was set up as competition for Go-Fly (BA started Go-Fly) opening a base at EMA, easyJet then took over Go-Fly and then left EMA, would be a bit of a return to EMA if BA acquired WW.
 
skipness1E
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 3:54 pm

Quoting lhr380 (Reply 43):
Ex GLA would be easy as the Cityflyer base is there (Maint etc)

I don't think it is, they had a pilot and CC base at EDI but maintenance is not done with BA, it's done at Exeter with flybe with third party engineering at outstations. BA have a BA Engineering presence at LCY for two A318s per day whereas CFE have third party cover and no in house presence(!)

Quoting Babybus (Reply 44):
With no disrespect to anyone

At which point you disrespected BMI by claiming there was no point in there being around anymore ! Ouch !

Quoting SKAirbus (Reply 35):
I can't see IAG retaining it considering the failure of BA's earlier attempt, Go..

That's inaccurate. It's worth reading Barbara Cassani's biography of her time with GO at Stansted. I flew with them GLA-DUB before the Ryanair bloodbath that forced them out of Ireland, they were a good product, very impressive. They could have been a great airline, but they were in competition with BA and taking BA's focus away from sorting out it's own issues on short haul. The company was sold for a good price from under the CEO to easyJet, it was not what you would consider a failure, indeed it was expanding with a fleet of new build B733s when it was flogged off and cash flow and revenue were in line with expectations.
 
AirbusA6
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 4:17 pm

Many of BMI's routes to the middle east are former BMed routes, which were previously flown as a franchise for BA! BA presumably didn't buy BMed as they didn't feel the routes profitable enough, so it will be interesting to see which ones they keep.

Knowing BA, they'll probably use the slots to run an extra 20 flights a day to JFK  
it's the bus to stansted (now renamed National Express a6 to ruin my username)
 
BrianDromey
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 4:27 pm

Quoting Richard28 (Reply 30):
doubt it... BMI baby operates classic 737's, and would require major investment to keep it flying in the medium term... this operation would either be closed down, or sold off... probably for a cheap price, as a lot of liabilities could be culled with it.

I think IAG taking over BD is a very different scenario to BA taking over BD. Within the group there are interesting is each of these segments, many of WW's routes are to Spain anyway so that could work. IB have a some excess A319/A320 they are trying to get rid of (Some to Vueling, Some to EI) so there is capacity available at a group level to retire the 733s as leases expire.

CityFlyer have no presence in the regions outside LCY routes, debateable if they would be interested, alhough BMI Regional is thought to be the best performing in the BD group.
Next flights: MAN-ORK-LHR(EI)-MAN(BD); MAN-LHR(BD)-ORK (EI); DUB-ZRH-LAX (LX) LAX-YYZ (AC) YYZ-YHZ-LHR(AC)-DUB(BD)
 
GT4EZY
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RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 4:31 pm

Quoting skipness1E (Reply 47):
That's inaccurate. It's worth reading Barbara Cassani's biography of her time with GO at Stansted. I flew with them GLA-DUB before the Ryanair bloodbath that forced them out of Ireland, they were a good product, very impressive. They could have been a great airline, but they were in competition with BA and taking BA's focus away from sorting out it's own issues on short haul. The company was sold for a good price from under the CEO to easyJet, it was not what you would consider a failure, indeed it was expanding with a fleet of new build B733s when it was flogged off and cash flow and revenue were in line with expectations.

Absolutely and in many ways Easyjet, although not initially, has taken some of what made GO popular thus crediting what GO stood for.
Proud to fly from Manchester!
 
kaitak
Posts: 8948
Joined: Wed Aug 18, 1999 5:49 am

RE: IAG Tables Offer For BMI!

Fri Oct 14, 2011 5:04 pm

Quoting SKAirbus (Reply 35):
First of all, I think that if IAG's offer is accepted, we will see the end of BMI. I cannot imagine that IAG will want to keep two seperate brands at LHR.

I think Bmi is, sadly, moribund; whatever happens now, the brand will cease to exist. Sad to see a long standing name in UK aviation going - joining the likes of Dan Air, BCal and many other names that have disappeared down through the years.

Quoting SKAirbus (Reply 35):
In the most extreme situation all routes will be dropped, a few A32X will be kept for BA and all that remains will be the lucrative slots at LHR.

Anyway, who knows what may happen... But that was just my own thoughts about what could happen in the event the bid is successful.

Apart from the former BMed routes to places in Russia and Africa, there's a lot of commonality in the routes and that allows a lot of room for rationalisation. As far as BA is concerned, Bmi is "slot fodder" - lovely description I know, but that's what it comes down to. The Competition Authority will require that a certain number of these is surrendered and BA will factor the likely total into its calculations, even though it will bleat in public that it's being required to surrender too many.

Bmi's A32X fleet are all IAE powered, so they'll fit into the BA fleet quite easily and the A330s will be pensioned off. Virgin will probably be satisfied to take some of BA's slots; others, like EI (which wants some more) and EK will seek some too. In the end, it's just a big carve up.