gilesdavies
Topic Author
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Lufthansa Confirm BMI Baby Is For Sale

Mon Jan 23, 2012 3:25 pm

I couldn't see a post on this when I did a search...

Even though the majority of us knew this would happen, Lufthansa have today come public and confirmed the low-cost division of the former BMI group - BMI Baby is now up for sale...

It seems LH have no desire to merge the carrier with Germanwings, even though, from what I am aware BMI Baby is making a small profit. (More than happy to be corrected, but I thought this was the case in previous items I have read in the past)

If Lufthansa are unable to find a new owner for BMI Baby, IAG group will receive a discount of the agreed price of £172.5 million for the sale of BMI. Which just goes to show, how little interest they have in going forward with a LCC.

www.travelmole.com/news_feature.php?news_id=2000005

On a totally different note, and thought I would share with you, for a giggle... My mum uses BMI Baby regularly, and she has never got her head around the name of the airline and calls them Be My Baby airlines. She gets strange looks, if the airline name pops up in conversation!  
 
skipness1E
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RE: Lufthansa Confirm BMI Baby Is For Sale

Mon Jan 23, 2012 4:36 pm

I thought it was "Be My Baby"as well when it was announced, she's not the only one.
 
BMIFlyer
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RE: Lufthansa Confirm BMI Baby Is For Sale

Mon Jan 23, 2012 4:41 pm

A candidate for takeover by Jet2??
Sometimes You Can't Make It On Your Own
 
 
gilesdavies
Topic Author
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RE: Lufthansa Confirm BMI Baby Is For Sale

Tue Jan 24, 2012 12:17 pm

Going by that article, I would assume BMI Baby is not doing so well, as this prospective German Buyer seems to be some company that specialises in turning around failing companies.

It would be interesting to see how integrated BMI Baby's systems are to its parent, BMI... For example moving IT and booking systems, could be a nightmare, to make it a standalone business.
 
tcasalert
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RE: Lufthansa Confirm BMI Baby Is For Sale

Tue Jan 24, 2012 12:24 pm

I wonder if the MON rumours will prove to be true?

Quoting gilesdavies (Reply 4):
It would be interesting to see how integrated BMI Baby's systems are to its parent, BMI... For example moving IT and booking systems, could be a nightmare, to make it a standalone business.

Indeed. My guess would be not very, as the booking system is completely different and you can't even book redemption flights on WW via the BD website, you have to call them as you would for any other partner airline.
Next flight: Feb 2012 - BHX-CPH-BHX - SK MD87 / CRJ900
 
SASMD82
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RE: Lufthansa Confirm BMI Baby Is For Sale

Tue Jan 24, 2012 9:34 pm

When having Ryanair, Easyjet and Air Berlin, I think that BMI baby certainly is too small. What about their loads? Are they profitable? I can imagine when you have such an small and old fleet, it will be very difficult to survive.

Quoting BMIFlyer (Reply 2):
A candidate for takeover by Jet2??

Makes sense!  
 
photoshooter
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RE: Lufthansa Confirm BMI Baby Is For Sale

Tue Jan 24, 2012 9:48 pm

I don't see anybody buying that airline so fast, look at the fleet... Old knackered Boeings.
Must be a real cheap airline for sale!

Niek  
'A lie gets halfway around the world before the truth has a chance to get its pants on.' - Winston Churchill
 
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BasilFawlty
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RE: Lufthansa Confirm BMI Baby Is For Sale

Wed Jan 25, 2012 12:18 am

Quoting photoshooter (Reply 7):
I don't see anybody buying that airline so fast, look at the fleet... Old knackered Boeings.
Must be a real cheap airline for sale!

Probably very cheap as all 737's are leased. If the price is right I can see Jet2 buying bmibaby. A little bit of silver and red paint, some new uniforms and there you go, a new Jet2 base in BHX and a significant larger base at EMA.
'Every year donkeys and mules kill more people than plane crashes'
 
BestWestern
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RE: Lufthansa Confirm BMI Baby Is For Sale

Wed Jan 25, 2012 4:48 am

The turn-around company looking at WW has taken badly run companies and turned them around before selling them. The problem with WW is not that its so badly run, but the main competition of EasyJet and Ryanair (and Aer Lingus in Northern Ireland) are much better at marketing, promotions and operating from a lower cost base with newer aircraft, with downroute brand equity.

The German turn-around examples were different, in a very different competitive landscape.

Even in a good economy there is no room in the uk for bmi baby. jet2, Ryanair, easyJet, Flybe and Monarch all scrapping for passengers on the Watford Gap to Manchester conurbationg (LTN, BHX, EMA, MAN, LPL, LBA) are more than enough, and Aer Lingus, easyJet, Flybe and jet2 scrapping for passengers in Northern Ireland is already two too many at a minimum.
Greetings from Hong Kong.... a subsidiary of China Inc.
 
richardw
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RE: Lufthansa Confirm BMI Baby Is For Sale

Wed Jan 25, 2012 9:41 am

Quoting bestwestern (Reply 9):
downroute brand equity

I don't think that applies to bmibaby in the midlands.
 
BestWestern
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RE: Lufthansa Confirm BMI Baby Is For Sale

Wed Jan 25, 2012 9:58 am

Quoting richardw (Reply 10):

I don't think that applies to bmibaby in the midlands.

They have band equity in the UK and Northern Ireland, but in comparison to easyJet, Aer Lingus, or Ryanair not in Holland or Spain.

With a small overseas presence these markets are too expensive to market to.
Greetings from Hong Kong.... a subsidiary of China Inc.
 
vv701
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RE: Lufthansa Confirm BMI Baby Is For Sale

Wed Jan 25, 2012 7:37 pm

Do we know what is included in the offer?

For example I cannot think that IAG with BA's existing maintenance facilities at LHR, CW, and GLA and their new facility just opened at PIK would be interested in British Midland Engineering at EMA. So is it possible that their maintenance facility and paint shop at EMA has been bundled together by Lufthansa Group with bmibaby? If so would that expand the list of possible buyers?
 
PlymSpotter
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RE: Lufthansa Confirm BMI Baby Is For Sale

Wed Jan 25, 2012 7:39 pm

Quoting VV701 (Reply 12):
For example I cannot think that IAG with BA's existing maintenance facilities at LHR, CW, and GLA and their new facility just opened at PIK would be interested in British Midland Engineering at EMA. So is it possible that their maintenance facility and paint shop at EMA has been bundled together by Lufthansa Group with bmibaby? If so would that expand the list of possible buyers?

Are British Airways not still looking for a further maintenance base? I was under the impression that another facility in South Wales was being looked at, so if they inherited the facilities and the workforce with BD that could be quite a bonus.


Dan  
...love is just a camouflage for what resembles rage again...
 
tcasalert
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RE: Lufthansa Confirm BMI Baby Is For Sale

Wed Jan 25, 2012 8:01 pm

Quoting PlymSpotter (Reply 13):
Are British Airways not still looking for a further maintenance base? I was under the impression that another facility in South Wales was being looked at, so if they inherited the facilities and the workforce with BD that could be quite a bonus.

Ooohh don't tease me Dan   You'd never tear me away from the place!
Next flight: Feb 2012 - BHX-CPH-BHX - SK MD87 / CRJ900
 
vv701
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RE: Lufthansa Confirm BMI Baby Is For Sale

Thu Jan 26, 2012 12:28 am

Quoting PlymSpotter (Reply 13):
Are British Airways not still looking for a further maintenance base? I was under the impression that another facility in South Wales was being looked at, so if they inherited the facilities and the workforce with BD that could be quite a bonus.

I assume that the BD maintenance facility/hangar at LHR would be included in the BD Main Line offer. But whether this meets BA's needs . . .

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