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Old 3rd Dec 2003, 20:24
  #22 (permalink)  
Goodness Gracious Me
 
Join Date: Oct 2000
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Virgin/bmi Merger

I totally agree with Scroggs. Why on earth would Branson want to merge his profitable long-haul airline with a second-rate, loss-making, short-haul airline? Feeder traffic? Well, the codeshare does that already.

A possible buyout by Virgin might be the only option but only so they can use the slots ex-LHR to increase long-haul routes/frequencies, and then sell everything else off. Why else would anyone buy a loss-making company which is already struggling against the low-cost carriers, to be made even worse if they build that 2nd runway at Stansted.

As for guys in bmi, the only way it would benefit them is if it goes ahead as an equitable merger - does anyone really think that will happen? Even then, there's nothing to say that there will definitely be any great benefit e.g. merging seniority lists, etc. At best, I think they'll continue to trade as 2 separate airlines, but under the Virgin brand. But, as I said, I think this is extremely unlikely.

Any other thoughts/comments? Would be interested to hear.
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