PPRuNe Forums - View Single Post - BA/bmi merger (was Virgin & Balpa - bmi next ?)
Old 17th Apr 2012, 12:24
  #434 (permalink)  
XBAMGMT
 
Join Date: Apr 2012
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The lesser of two "evils"?

I think the bmi chaps and ladies could benefit from a bit of background to the bmi acquisition, what is currently going on in BA shorthaul, and how the pilots got involved.

I worked in what Anton may describe as an “admin” role in BA Waterside for a few years. I have never been to, or heard of a “corporate identity” day – and suspect they do not exist.

BA did not buy bmi. IAG bought bmi. The difference is significant.

IAG made no secret of the fact they are only interested in the slots from bmi, nothing else. At the same time two of IAG’s current business units, BA and IB, are in the midst of large strategic reviews of their shorthaul businesses (as are most legacy carriers). I won’t say anymore than that for BA, however the result of a similar review for Iberia was for the formation of IB Express.

Now, IAG (based on the Bath Road) wanted bmi to become the new “BA Express” for BA shorthaul. The terms and conditions would be benchmarked to Vueling, as Vueling are now the new benchmark in terms and conditions for pilots in Europe. BA were set against this and want to keep shorthaul “in-house”, a struggle they have recently also been fighting at LGW. IAG saw an opportunity for leverage here, and told BA they could only get bmi in-house if they reduce their costs by a set target, together with changes on the revenue side. A large BA project kicked-off, and the 34PP scale is but a small part of this, but perhaps the most visible to pilots. IAG were also very clear that bmi costs cannot be allowed to rise be even 1 penny. But, with cost reductions from BA and their pilots, IAG were happy to allow integration of bmi LHR into BA LHR shorthaul.

One point was very clear, bmi costs cannot be allowed to rise. If pilots were to join the BA MSL in bmi DOJ order this would imply a substantial cost increase, to which IAG would not permit. If bmi pilots want to fight for this it is my opinion that they risk blowing the whole integration deal and going over to new conditions that remain unknown.

Now, I do not know the exact details of how IAG were planning on setting up BA Express using bmi, but it was suggested by one manager in IAG that TUPE would not apply as bmi as a unit were making horrific losses, and they would not be integrated into any existing business unit. I am not a lawyer and nor is he so I can’t comment on the validity of this, but I will say that the IAG legal team, and their lawyers based in the city are VERY good and would make sure everything is legal.

As an outsider looking in I think the deal offered to bmi pilots, and BA pilots for that matter, is fair. Bmi pilots gain secure employment and lose little when many of their ex-bmi colleagues in other roles will be on the dole . If what I read here is correct they even keep grandfather rights and “dead man’s shoes” for commands – in my humble opinion a very generous offer. BA pilots gain from slightly better prospects due to longhaul expansion, but have had to lose some overtime pay as part of the deal.

Those in bmi who think they will keep seniority in BA with associated pay increases clearly have no understanding of, or respect for, how IAG works with its business units. Seniority will not happen as it leads to cost increases. IAG are ruthless and determined, they make no secret of this, and the certainly are not in the business of making friends.
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