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antonovman
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Whats Happening With BMI?

Thu Nov 24, 2011 4:05 pm

As above. It seems to have gone all quiet about BMI and the sale
Has anyone heard any different ?
It was the first airline I worked for and a really good place to gain experience
 
tcasalert
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 4:08 pm

Funny you should start this thread, I was just about to start exactly the same thread  

Nothing further heard. I'm curious if I need to use my Diamond Club miles before they get bought out  
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Bongodog1964
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 4:58 pm

I would imagine that IAG accountants are looking though the books conducting what is normally referred to as "due diligence" i.e. making sure that there are no liabilities that they are unaware of. This is a major undertaking as they will look at just about everything from aircraft leases to pension liabilities, and even contracts to supply janitorial supplies. Once they have carried out their work and reported their findings its down to the senior management at each end to strike a final deal.
The other aspect in this case is sounding out the competition commission to see if they will launch an enquiry.
 
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Vasu
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 5:01 pm

Today I heard a new bmi Radio advert in London... not what I was expecting, seeing as their future is hanging in the balance!
 
jfk777
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 5:06 pm

Its going to be dismembered. IAG or Virgin wants the slots. The issues will be what happens to BMI's employees and airplanes. BA flies most routes BMI does except for some Saudi Arabian routes BA wants. BMI also flies an A330 to Sierra Leone from LHR, Have no idea if BA wants it? BMI's mid-haul strategy has been a disaster which is why Lufthansa wants to get rid of it.
 
anstar
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 5:14 pm

BMI's mid haul network is the issue.

BMED was not profitable and hence why BA let BMI buy it. (I believe BA had first offer to buy it but declined).
 
skipness1E
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 5:16 pm

Quoting jfk777 (Reply 4):
BA flies most routes BMI does except for some Saudi Arabian routes BA wants

Quite the contrary in fact, there is *very* little overlap between BA and BD.
 
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Vasu
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 5:21 pm

Surely BA won't completely do away with all the mid-haul routes? That'd leave a long list of non-stop destinations missing from the UK's destination map!
 
LX138
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 5:24 pm

The mid-haul network was not the 'Main' issue or disaster. Infact if they had stayed mainly shorthaul competing with BA on MAD and CDG runs they would have been completely destroyed by BA a long long time ago. Now, they have still been destroyed by BA but the mid-haul strategy probably extended the life of BMI rather than led to their demise, even with the Middle East unrest!

Quoting jfk777 (Reply 4):
BMI also flies an A330 to Sierra Leone from LHR, Have no idea if BA wants it?

Nope, the A330's will be gone within weeks. The leasing rates were published somewhere and (unsurprisingly with BMI) were obscenely high.
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fcogafa
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 5:27 pm

An article from Flightglobal yesterday, not much really new though...

http://www.flightglobal.com/news/art...o-the-sales-after-bmi-deal-365151/
 
anstar
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 5:43 pm

Quoting Vasu (Reply 7):
Surely BA won't completely do away with all the mid-haul routes?

They have already got rid of them once through BMED so I guess they could do it again with BMI.
 
Humberside
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 5:49 pm

Quoting Vasu (Reply 3):
Today I heard a new bmi Radio advert in London... not what I was expecting, seeing as their future is hanging in the balance!

They need to continue 'business as normal' to an extent in case the IAG deal fails. Unlikely, but if it did, it would leave bmi in an even worse state to have given up on marketing. Also it's not been confirmed yet the bmi brand will cease to exist - of course it almost certainly will cease to exist, but LH has to keep bmi 'alive' until IAG has paid up and confirmed what they intend to do with bmi.

Finally, the radio advert slot could have been booked and paid for months ago

Quoting jfk777 (Reply 4):
BA flies most routes BMI does except for some Saudi Arabian routes BA wants.

BA are back in Saudi Arabia
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antonovman
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 6:00 pm

Quoting jfk777 (Reply 4):

Its going to be dismembered. IAG or Virgin wants the slots.

Virgin do not need the slots because they have leased out a lot of their own slots to other carriers so could not even use their own slots.
Its all mouth as usual from Virgin
 
LHRFlyer
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 6:25 pm

IAG has started due diligence. Virgin has gone very quiet.
 
jet72uk
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 6:54 pm

I concur with skipness - there is indeed very little overlap. When u consider BA's very limited network (compared to LH) they could do with keeping most of them and extending their poor coverage in Asia.
 
planejamie
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 7:00 pm

Quoting Humberside (Reply 11):
BA are back in Saudi Arabia

And on all the flight's I've had with them, they're doing quite well! Considering they've got SV and BD to compete with as well as LH, AF and the other gulf carriers! Plus the government policy that all foreign travel by expats working for foreign companies or something like that have to fly 50% of their business trips on SV... not sure how true this is or how much it is enforced, but sounds about right...

I suspect, like many state on here, IAG are going over BD with a fine tooth comb and I reckon we'll hear an announcement sooner or later. Kinda annoying given that BD have just finished refurbishing all the mainline cabins in brown leather, seems a bit of a waste!
 
vv701
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 7:53 pm

If BA and/or VS want the LHR slots they also need (most or all?) of BD's aircraft and flight and cabin crews. Otherwise neither - particularly VS - wiil be able to operate the slots for 80 per cent of possible occasions. And if that hapopens the slots will be confiscatewd under the "use it or loose it" rule and the purchaser will simply have poured the purchase price down the drain.

If IAG purchasers BD it could even retain its identity within IAG. But if that should happen still expect to see significant changes to its operations in the short to medium term.
 
Tobias2702
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 7:58 pm

What will happen to routes like Berlin-London, which BD operates on behalf of LH? Discontinued or transferred to mainline LH?
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LHRFlyer
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 8:18 pm

Quoting Tobias2702 (Reply 17):
What will happen to routes like Berlin-London, which BD operates on behalf of LH? Discontinued or transferred to mainline LH?

These routes are being transferred to Lufthansa.
 
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Vasu
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 8:21 pm

Quoting Tobias2702 (Reply 17):
What will happen to routes like Berlin-London, which BD operates on behalf of LH? Discontinued or transferred to mainline LH?

I'd suspect the latter. Why did LH transfer it to BD in the first place?
 
sevenheavy
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 8:21 pm

Quoting antonovman (Reply 12):

What is all mouth exactly? Other than make a counter offer, what "action" are they going to take?

Besides, the only reference I can find is to VS making a counter offer, when have they said they want any slots out of the deal? It's not mentioned in any of the news reports I could find

Predictably, more cheap shots at VS, why let the facts get in the way of a good whinge!

Quoting LHRFlyer (Reply 13):

No. Everyone has gone very quiet....that's why the thread was started!!
So long 701, it was nice knowing you.
 
jet72uk
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 8:54 pm

Will BA's rather slick LGW operation continue???????
 
Viscount724
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 10:35 pm

Quoting VV701 (Reply 16):
If BA and/or VS want the LHR slots they also need (most or all?) of BD's aircraft and flight and cabin crews.

Most observers think BA has litttle, if any, interest in BD's routes or aircraft. They only want them for their slots which will likely be used to add new BA longhaul services, probably mainly to Asia (more destinations in China etc.) were BA is uncompetitive with several other carriers due to the lack of LHR slots.
 
steve6666
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RE: Whats Happening With BMI?

Thu Nov 24, 2011 11:39 pm

They only signed a letter of intent didn't they - nothing binding yet. Probably specifies a period of exclusivity to allow BA to do diligence so will go quiet until the end of that.

There will be a heap of financial - and I am guessing operational - due diligence going on. I know there was a bucket load of ops (synergy) diligence done for the Iberia acquisition because I worked with the man who did it on the Kraft Cadbury merger and we have done BA's financial diligence for years too.

The numbers in IAG's presentation around synergies have been very well kicked by my mate and the size of the synergy with BMI will be crucial for IAG/BA. Basically, the synergies for BA will dwarf those Virgin could generate with BMI.
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koruman
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 12:28 am

I think BMI had an opportunity that they had not expected when they had to use their A330 fleet from Machester rather than Heathrow.

They could have had a sustainable future as a niche carrier if they had focused on the following model:

1) Trans-Atlantic and Caribbean from Manchester, and possibly also Birmingham and Glasgow.
2) Feeder services from Manchester, Glasgow and Birmingham into Lufthansa long-haul to Asia and Africa.
3) Manchester-Hong Kong, to feed into NZ services to AKL and VS services to SYD.

They would never have had BA's LHR yields, but the combined Manchester + Birmingham + Glasgow catchment would have been around 15-20 million people. And those passengers would have been delighted to avoid LHR and the Star Alliance link would have kept them competitive.
 
bwvilla
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 8:37 am

Quoting VV701 (Reply 16):
If IAG purchasers BD it could even retain its identity within IAG. But if that should happen still expect to see significant changes to its operations in the short to medium term.

Regarding whether IAG retains the BD identity, might this also depend to some extent on the pay and contractual terms & conditions of BD crew/staff compared to BA?
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tcasalert
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 8:43 am

Quoting bwvilla (Reply 25):
Regarding whether IAG retains the BD identity, might this also depend to some extent on the pay and contractual terms & conditions of BD crew/staff compared to BA?

Surely the staff would have to be on the same pay and conditions as they are now due to TUPE?
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liftsifter
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 8:46 am

I think retaining the BD brand is important for both BD and IAG. That way it is mostly to the benefit of all the airlines, and not just BA.
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kiwiandrew

RE: Whats Happening With BMI?

Fri Nov 25, 2011 8:52 am

Quoting liftsifter (Reply 27):
I think retaining the BD brand is important for both BD and IAG.

I am curious, why do think retaining the BD brand would be important for IAG?
 
antonovman
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 9:44 am

Quoting liftsifter (Reply 27):

I think retaining the BD brand is important for both BD and IAG. That way it is mostly to the benefit of all the airlines, and not just BA.
Quoting kiwiandrew (Reply 28):
I am curious, why do think retaining the BD brand would be important for IAG?

Retaining the BD brand ? you must be joking. It will disappear within days .
Why would BA want to keep the BD brand ?
 
skipness1E
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 9:53 am

The bmi brand is devalued and pretty much useless to BA. It will be gone ASAP if IAG do the deal, there will be some form of transition period of course. Not sure TUPE applies on this one.
 
Bongodog1964
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 10:04 am

Quoting skipness1E (Reply 30):
The bmi brand is devalued and pretty much useless to BA. It will be gone ASAP if IAG do the deal, there will be some form of transition period of course. Not sure TUPE applies on this one.

TUPE transfers staff from the old owner to the new one with their terms and conditions intact, if however the new owner doesn't want to take them all its the responsibility of the old owner to make them redundant and compensate them according to either UK law or their contracted terms, whichever is better for the employee.
To my mind if IAG or any other airline takes over BD as going concern they will need to take on the majority of staff under the TUPE rules, if however it is broken up and the slots sold, TUPE won't apply.
A lot depends upon the liabilities which would accompany the BD staff, if they are higher than those attached to the BA workforce IAG would tend to reduce their offer for BD, if however the staff are on lower terms the price would go up a bit.

As to the BD brand, its value is probably now so low as to be incalculable.
 
LX138
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 10:33 am

Quoting steve6666 (Reply 23):
The numbers in IAG's presentation around synergies have been very well kicked by my mate and the size of the synergy with BMI will be crucial for IAG/BA. Basically, the synergies for BA will dwarf those Virgin could generate with BMI.

And thats mostly down to BA's size advantage - 1) they have the money to soak up interim losses of BD, 2) They already operate almost entirely the same aircraft fleet with same engine spec, 3) The BD route network is now quite complimentary.

Why did your mate kick the numbers in the presentation though?

Quoting koruman (Reply 24):
They could have had a sustainable future as a niche carrier if they had focused on the following model:

1) Trans-Atlantic and Caribbean from Manchester, and possibly also Birmingham and Glasgow.
2) Feeder services from Manchester, Glasgow and Birmingham into Lufthansa long-haul to Asia and Africa.
3) Manchester-Hong Kong, to feed into NZ services to AKL and VS services to SYD.

I've long mooted some of the above but point one WAS done from MAN and didn't work. The BHX bit wouldn't work as its too close to London or Manchester and the remaining ex-BHX traffic is well served by the charter market.

Point 2 - No, no and no. Feed is what has been a problem for the airline - infact as far as I'm concerned any short-haul airline CEO thats having to rely on feeding someone else has failed in their career and in their position (ok a bit harsh but you get the theme).

Point 3 - Again no - BD feeding others has been suicide. BD needed to work more on filling their own planes with their own passengers on their own tickets with better yield. Further more, you don't fly the highly competitive UK-HKG route to go and 'feed' someone else. NZ don't need 'feeding' from there either. Crikey I'm hungry now  
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slinky09
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 10:56 am

Quoting antonovman (Reply 12):
Virgin do not need the slots because they have leased out a lot of their own slots to other carriers so could not even use their own slots.

Where is this detail available, or can you share more?

Quoting Viscount724 (Reply 22):
Most observers think BA has litttle, if any, interest in BD's routes or aircraft. They only want them for their slots which will likely be used to add new BA longhaul services, probably mainly to Asia

You're likely true, however a) BA needs more aircraft for those routes, and they won't come quickly, so b) they're likely to keep some BD routes flying or move them to others just to keep the slots active, until a) happens. I'm not aware that BA has a glut of long haul aircraft sitting around?

Quoting liftsifter (Reply 27):
I think retaining the BD brand is important for both BD and IAG. That way it is mostly to the benefit of all the airlines, and not just BA.

That's laughable, BD's brand is so diluted, and in any case why incur the cost of maintaining it against a much bigger brand that is BA?
 
oneworld77
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 11:04 am

Quoting slinky09 (Reply 33):
That's laughable, BD's brand is so diluted, and in any case why incur the cost of maintaining it against a much bigger brand that is BA?

I think we could see the brand retained for a season, even if used as BA (operated by BMI) Flight XXXX. The brand is ruined though, even their aircraft don't know what airline they're flying under.

I heard at some airport recently "BMI British Midland" being used. I thought it was just BMI these days? Or at least it could have been BMI British Midland International?
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LX138
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 11:51 am

Quoting slinky09 (Reply 33):
a) BA needs more aircraft for those routes, and they won't come quickly, so b) they're likely to keep some BD routes flying or move them to others just to keep the slots active, until a) happens. I'm not aware that BA has a glut of long haul aircraft sitting around?

They do, there's at least a couple of 744's at VCV and the odd one (maybe two) at CWL. One of these is currently being refurbished after storage. But yes long-term they would need more.

It's funny how I'm also getting an abnormally high amount of E-shots from bmi at the moment. Everything from 'sign up to our credit card' to seat sales.
StarWorld Team - The ultimate airline alliance
 
skipness1E
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 12:17 pm

Quoting Reply 34):
recently "BMI British Midland" being used. I thought it was just BMI these days?

They went back to using the full title last year, just didn't put it back on the aircraft. It's on the website which for the first time in years has a half way decent front page.
 
jfk777
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 12:27 pm

Quoting skipness1E (Reply 6):
Quite the contrary in fact, there is *very* little overlap between BA and BD.

Cairo, Moscow, Tel Aviv, the domestic UK routes and LHR to Europe's main cities. How is that for overlap, BMI can't fly to every city BA flies to but does fly to many of the big ones.

Quoting Humberside (Reply 11):
BA flies most routes BMI does except for some Saudi Arabian routes BA wants.

BA are back in Saudi Arabia

I meant BA wants more Saudi flights, I am quite aware BA has been back in Saudi Arabia for 20 years since B Cal flew those routes.
 
vv701
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 12:59 pm

Quoting Viscount724 (Reply 22):
Most observers think BA has little, if any, interest in BD's routes or aircraft. They only want them for their slots which will likely be used to add new BA long haul services, probably mainly to Asia (more destinations in China etc.) were BA is uncompetitive with several other carriers due to the lack of LHR slots.


Firstly most observers who think BA has little if any LONG TERM INTEREST in BD's routes or aircraft could be correct. But these observers are overlooking a couple of very significant facts if the implication is that IAG have no interest at all in BD's aircraft and routes.

The first is that it is not BA management but IAG management that is undertaking due diligence. Of course if the plan was to immediately integrate BD into BA on the conclusion of negotiations - as per the BA take over of Dan Air - then there would have been nothing to stop IAG deciding to let BA make an offer. Indeed why would IAG management get totally involved if the objective was simply to give BD's slots to BA?

The second is the number involved, namely around 700 weekly slots. This represents around 50 daily arrival and around 50 daily departure slots. Most long haul operations only require a single daily arrival and departure slot per aircraft. So if IAG are not interested in BD's aircraft or, indeed, the routes to operate them on, they will have to very quickly obtain around 50 new long haul aircraft.

If BD's slots are not to be confiscated under the "use-it-or-loose-it" rule (that requires each and every slot to be used on a minimum of 80 per cent of possible occasions within each Winter and Summer Season) it should be clear to these observers that if IAG really did have no interest in BD's aircraft but simply wants the slots for BA's long haul operations BA is going to face tremendous challenges in buying, leasing or otherwise obtaining in a matter of weeks 50 new long haul aircraft. Similarly if IAG have no interest at all in BD's current routes then BA are going to have to very very quickly launch 50 new daily long haul services. Compare this figure, for example, with the average number of North Atlantic services operated currently by BA where they are the largest operator, 54.

It is therefore my opinion that while "most observers" could be right if we are taking a four or five year view, they are totally wrong when looking to the short to medium term. Buying BD's slots but immediately disposing of its aircraft and routes can only lead to oned result. Total disaster.

Quoting antonovman (Reply 29):
Why would BA want to keep the BD brand ?


If - and it is a fairly big if - the BD brand were Io survive (at least for a few years) the decision would not be made by BA. They are not negotiating with Lufthansa Group. Their owners, IAG, are. A possible scenario is that BD would continue to operate some of their aircraft and routes while, as happened when Lufthansa Group purchased them, some of their slots would be transferred to BA in manageable bites. This would not preclude the possible disappearence of the bmi brand in a few years.
 
BritishB747
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 1:05 pm

I know that BMI Regional is to be sold off separately but would this sale include all the ERJ-135/145s. I bring this up as I was looking at prices for flying down from EDI to LHR and back in late August/early September and noticed that on the LHR-EDI leg it was being operated by a ERJ-145. Is this just an aircraft that has been borrowed from Regional or do BMI Mainline still have ERJs? If so I assume that they would sold off pretty sharp if the take-over goes through seeing as BA got rid of theirs some time ago?

Regards
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by188b
Posts: 561
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 1:08 pm

Quoting jfk777 (Reply 37):
Cairo, Moscow, Tel Aviv, the domestic UK routes and LHR to Europe's main cities. How is that for overlap, BMI can't fly to every city BA

Bmi do not fly to Tel aviv anymore, nor would it be fair to say that they fly to Europe main cities, apart from Vienna.

From the top of my head from LHR they fly to : Moscow , Cairo, Nice, Edinburgh, Vienna, Riyadh, Jeddah, Agadir, Marrakech, Amman, Baku, Bishkek, Dublin, Belfast, Almaty, Amritsar, Beirut, Casablanca, Cologne, Damascus, Freetown, Khartoum, Tblisi and Yerevan.


Only the first 7 of those destinations are routes where BA also fly from LHR (Berlin ommitted , as thats now a wet lease to LH), Leaving 17 that would be new markets fro BA
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Candid76
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 1:12 pm

How many of BD's aircraft are BD's aircraft? Most of them appear to be on operating leases. I have no information as to when these leases are due to expire, but surely this gives IAG a fair amount of flexibility?

Quoting LX138 (Reply 32):
Point 3 - Again no - BD feeding others has been suicide. BD needed to work more on filling their own planes with their own passengers on their own tickets with better yield. Further more, you don't fly the highly competitive UK-HKG route to go and 'feed' someone else. NZ don't need 'feeding' from there either. Crikey I'm hungry now

Then why do they bother with MAN-LHR? There can't be much higher yield O & D traffic nowadays - is there a large amount of bmi to bmi transfer traffic as opposed to bmi to Star?

If Star are going to sell their UK domestic feed through LHR to oneworld then they need to beef up connections from UK airports to other Star hubs.
 
vv701
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RE: Whats Happening With BMI?

Fri Nov 25, 2011 2:13 pm

Quoting Candid76 (Reply 41):
How many of BD's aircraft are BD's aircraft? Most of them appear to be on operating leases.

Yes. According to the CAA web site all the BD fleet is leased (or "chartered" as they put it) except for 321 G-MEDU and 320s G-MIDO, 'DT and 'DY which are "owned".
 
skipness1E
Posts: 4935
Joined: Sun Aug 19, 2007 9:18 am

RE: Whats Happening With BMI?

Fri Nov 25, 2011 2:23 pm

Quoting Candid76 (Reply 41):
Then why do they bother with MAN-LHR? There can't be much higher yield O & D traffic nowadays - is there a large amount of bmi to bmi transfer traffic as opposed to bmi to Star?

If Star are going to sell their UK domestic feed through LHR to oneworld then they need to beef up connections from UK airports to other Star hubs.

LHR is not a STAR hub, more of a focus city. I doubt United or US Airways will get much traffic going UK-FRA-US, it's a massive faff, noticeably further than AMS or CDG from London. Lufthansa does feed East through MUC and FRA though as does Swiss through ZRH, the rest of STAR is mainly point to point out of LHR.
Part of the reason BD axed GLA was that too much revenue was going to the long haul STAR "partner" and not their bottom line.
 
LX138
Posts: 323
Joined: Sat Jul 11, 2009 5:45 pm

RE: Whats Happening With BMI?

Fri Nov 25, 2011 2:34 pm

Quoting Candid76 (Reply 41):
Then why do they bother with MAN-LHR? There can't be much higher yield O & D traffic nowadays - is there a large amount of bmi to bmi transfer traffic as opposed to bmi to Star?

I really don't know, and thats part of the reason they are in the mess they are in isn't it!?

On some of these domestic runs the fare going to bmi is sometimes as low as £9! Even on some of the well-timed evening flights back into London it can be very cheap. Taking into account the aircraft overheads that need covering, landing/navigation charges and crew pay and overnight stay costs - the total revenue wouldn't even cover the captains hotel breakfast in the morning!
StarWorld Team - The ultimate airline alliance
 
sxb
Posts: 90
Joined: Fri Sep 12, 2008 1:25 pm

RE: Whats Happening With BMI?

Fri Nov 25, 2011 2:36 pm

And what is going on with WW?
SXB
 
planejamie
Posts: 564
Joined: Thu Sep 15, 2011 8:41 pm

RE: Whats Happening With BMI?

Fri Nov 25, 2011 5:30 pm

Quoting jfk777 (Reply 37):
I meant BA wants more Saudi flights, I am quite aware BA has been back in Saudi Arabia for 20 years since B Cal flew those routes.

They stopped the flights in 2003 due to "operational reasons" or something however, it's more likely due to the very very rapid exit of many British (and American) expats living in Saudi Arabia after some western compounds were bombed. A couple of years later, BD picked up the route again operating a few times a week, then gave it a dedicated aircraft (G-WWBD) with just Business/Economy (and half the aircraft Business by the way) and has done quite nicely from the route since. When BA came back to Saudi a few years ago, they too have benefited quite well and operate an "opposite" flight as they go against what European airlines do (arrive at night, depart in the early hours of the morning) by arriving at about 6am and departing again at about 8am.

Quoting skipness1E (Reply 43):
LHR is not a STAR hub, more of a focus city. I doubt United or US Airways will get much traffic going UK-FRA-US, it's a massive faff, noticeably further than AMS or CDG from London. Lufthansa does feed East through MUC and FRA though as does Swiss through ZRH, the rest of STAR is mainly point to point out of LHR.

Pretty much most of the STAR airlines (and SkyTeam with AF/KL) in Europe serve MAN, GLA, EDI, and even some of the other regional airports. They feed their hubs themselves. Even the US based STAR Carriers (CO/UA and US) serve many UK airports (US using an A330-300 to MAN) with a daily (or so) flight. BD have only really been serving their own small base of flights out of LHR, which of course they don't have as much of. BA on the other hand have many many flights and a strong LHR/LGW-Domestic network to serve their onward flights. The aircraft are pretty much full everytime I fly with BA on MAN-LHR on the Shuttle flights.
 
slinky09
Posts: 662
Joined: Sat Jun 06, 2009 5:03 pm

RE: Whats Happening With BMI?

Fri Nov 25, 2011 9:10 pm

Quoting by188b (Reply 40):
Only the first 7 of those destinations are routes where BA also fly from LHR (Berlin ommitted , as thats now a wet lease to LH), Leaving 17 that would be new markets fro BA

Thank you for saving me the hassle of refuting jfk777's second comment on this!

Quoting Candid76 (Reply 41):
Then why do they bother with MAN-LHR?

Still good traffic perhaps, but then BMI cut the MAN-LHR schedules recently and p'd off a lot of VS connecting passengers ... so maybe it isn't so good.
 
avek00
Posts: 3261
Joined: Mon Oct 25, 2004 5:56 am

RE: Whats Happening With BMI?

Fri Nov 25, 2011 9:38 pm

I expect that much of bmi's mid-haul network will be kept by British Airways, for the following reasons:

1. Central Asia and the Middle East have become MUCH more important as destinations for business and governmental traffic compared to 10 years ago;

2. The BA of today has a cost infrastructure that is better suited to operating mid-haul flights than was the case at the time the franchise flying was divested; and

3. With the JV with American Airlines and Iberia now in place, BA is in a much stronger position to drive up the connecting traffic flows for the bmi mid-haul flights -- and bear in mind, with Central Asia we're talking about a market that has high yields on tickets to most anywhere in the world in all cabins, so there's financial upside to chasing the connecting traffic.
Live life to the fullest.
 
Glom
Posts: 2056
Joined: Sat Apr 23, 2005 2:38 am

RE: Whats Happening With BMI?

Fri Nov 25, 2011 11:01 pm

But Diamond Club? If I don't spend them now, will I lose my miles? What about my credit card that gets me Diamond Club miles?

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