PPRuNe Forums - View Single Post - The Lufthansa / BMI Thing (merged)
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Old 27th Jun 2009, 16:43
  #250 (permalink)  
TwinAisle
Scourge of Bad Airline Management!
 
Join Date: Jul 2000
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Guys - let's look at this through business and money eyes.

Baby has no value to any other airline:
  • It has a brand that will need to be changed (can't see them being bmi anything, and calling it 'baby' will be a nightmare in brand protection terms);
  • It has relatively old, leased 733s and 735s, and the market is awash with them;
  • It has few useful slots - and let's face it, most of the airports it operates to would soon find room for someone else in the current climate;
  • It has an AOC, which is nice, but any airline that looks to buy them will already have one.

Baby has four options:
  • stay where it is (as long as LH want it, which doesn't seem to be long!)
  • go it alone (tough in this market, and it will need unpicking from bmi - it is NOT a standalone business right now)
  • sell itself for a BI/MBO
  • admit defeat and close it.

If I were LH/bmi - I'd go for Option 3.

TA
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