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Old 24th Jun 2009, 11:06
  #1262 (permalink)  
Whitehatter
 
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Queenvic

I am not going to pretend to be a sage or expert on such matters, but there are potential mid-sheet costs that LH can use their muscle to excise out of BMI's balance sheet.

I'm thinking mostly of the like of leasing costs, where operations such as ILFC have been used to fund fleet renewal. Swiss seems to have been an example where the incoming LH has turned over their longhaul operations fleet to new, more suitable aircraft. From what I've heard in the bread aisle at Tesco BD's equipment costs are one reason the airline struggles financially so Lufty's finance guys can potentially make a lot of adjustments just in that field.

Otherwise I really can't see them making vast changes to a brand with a decent public profile, no matter what the nay-sayers think. BMI is a visible British brand with some useful positions at Heathrow and they won't want to take massive risks with this new asset, at least not until the operation is refinanced.
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