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Old 5th Feb 2007, 17:44
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bmibaby.com
 
Join Date: Feb 2003
Location: East Midlands Airport (EMA)
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EI-BUD, thank you for a balanced and well-informed post. As you mentioned, and I stated earlier up in the thread, bmibaby currently are not up for sale, and I am not aware of bmi unofficially putting out a tender to see how much we'd be worth or who might be interested in buying us. However, following the purchase of BMED and the expansion of bmi regional, it seems that the bmi group are now going after niche high yielding markets, realising that their core market of a decade ago being a second player to BA in shorthaul trunk routes, now belongs to EasyJet. They also have to contend with a more efficient BA (though admittedly the last six months haven't really shown this) and a more efficient and environmentally-aware rail network. bmibaby are in the unfortunate situation that our geriatric fleet of aircraft and our spartan route network are all predominantly in low yielding markets where if the fare isn't low, the passenger will either fly the competition or not travel. Simply baby doesn't have the leadership or cost structure to concentrate on this market the same way that an airline like EasyJet or Ryanair can. Though EasyJet have publicly stated they plan for all of their growth to be organic, I think the reason they've been mentioned as an ideal suitor to bmibaby, is because both companies serve primary airports, and bmibaby uses EasyJet's cast-off B733s. EMA/BHX are just up the road from each other, but serve completely different markets, similar to LTN & STN. I'm not so sure EasyJet would be keen to stay at CWL given that their BRS base just up the road is growing successfully, and CWL is really the dustbowl of baby's operations. Manchester, I'm unsure of. EasyJet have been to MAN before to look round, but I wonder if the considerable other low-cost competition (Thomsonfly, Jet2, Monarch Scheduled, Flybe) might put them off.
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