Ladies!
While there's been a fair bit of gobbing off on both sides here, it is the attitude of the 'militant' Flybes that strikes me as the most incongruous. Not that it really matters, of course!
This 'we're coming to your rescue so you ought to be thankful' stuff is not going to wash.
This deal may NOT come off and IF it DOES come off it will be because it is in FLYBE's interest for it to happen. In other words the chief benefactor is Flybe. So lets not pretend it's some sort of charitable or altruistic merger. Bacon has stuff that Flybe wants and if a deal ain't cut then it's not getting it, which is going to be a downer for Flybe.
Now there are other ways that Flybe can expand, ie without Bacon but they will take a lot longer and delay the big payout the leaders are so looking forward to when they float the new big Flybe.
Therefore, clearly, Bacon HAS a negotiating position- not as strong as Flybe's of course, but it HAS a position nonetheless.
It also has a position should the merger NOT go ahead. And although the outcome could be poor it might be 'better' in some ways for us than the merger- indeed , as someone else pointed out, BAcon may even continue for a while if not indefinately.
Before someone suggests I live in La-La land could I point out a couple of factoids?
1. Bacons profit/loss situation is by no means irrecoverable. (£30m down to £6m in less than one year).
2. The REAL motive behind this 'deal' is NOT the disposal of Bacon but the winding up of BA's out station staff. And NOTHING is going to stop that now. This is where BA make the real saving and that saving would help Bacon were it to continue!
3. The flights have been very busy- which could lead one to the conclusion that the 'Connect' product is doing quite well.
If I was on the CC, I'd be taking a firm line.
Last edited by brain fade; 9th Dec 2006 at 10:59.