PPRuNe Forums - View Single Post - The Lufthansa / BMI Thing (merged)
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Old 13th Dec 2007, 20:01
  #57 (permalink)  
6chimes
 
Join Date: Dec 2004
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Can BA afford to let bmi go to anyone else? Particularly if that other company were more efficient than bmi (not hard) and had the size to compete with BA financially. Bmi have never been able to really have an impact on BA other than on a few domestic and european routes. Another large company would be to much for BA to deal with.

BA has a huge cost base and as we all know and envy, their staff are much better looked after and paid than more for working less. Something that the top brass at BA know well and are keen to resolve.

Here is a scenario. Buy bmi rename it BA europe or something else it really doesn't matter what, transfer the Saudi routes into their L/H operation and slowly intergrate THEIR eurofleet into bmi thereby in one fell swoop reduce a massive cost base of crew and operations. Ending up with a LGW style operation for their european/middle east network on the cheap. It would create a lot of unrest and probably industrial action but the longterm outcome would be worth it for the boss. Or done over a few years with the odd route moving to the new LO CO operation, it will be to late by the time it gets noticed.

Farfetched? Maybe. Possible? ...............Thoughts anyone?

Oh and by the way Paxboy, there isn't much of a case to stop BA buying bmi as far as monopolies and mergers are concerned, just look at the rest of europe and see what percentage of slots are held by the dominant flag carriers at their main hubs. You will see BA is well down the list.

6
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