HEATHROW
Join Date: Oct 2006
Location: UK - Near LHR
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"Virgin's pax will still use the main departure lounge and no airline "owns" or can brand any of the gates."
EGNXEMA
I think you will find in T1 the BA own the GT5 lougne whichh in branded in BA colours. Also BMI own the GT8 area which also the in BMI branding !
EGNXEMA
I think you will find in T1 the BA own the GT5 lougne whichh in branded in BA colours. Also BMI own the GT8 area which also the in BMI branding !
BMI sells slots to BA
From Times Online
March 30, 2007
BA strikes secret Heathrow slots deal with BMI
British Airways, under transatlantic pressure from 'open skies', is understood to have paid £30 million for 51 slots a week
Dominic O’Connell, Deputy Business Editor, The Sunday Times
British Airways has struck a secret deal to buy a parcel of lucrative runway slots at Heathrow from BMI British Midland, one of its biggest airline rivals.
The transaction, the biggest of its kind in recent years, will add to the speculation over the future of BMI, which is regarded as a prime takeover target thanks to its ownership of 12% of Heathrow’s scarce runway capacity.
Although neither company would comment on the deal today, it is understood BA paid around £30 million for 51 slots a week.
BA is eager to buttress its position at Heathrow ahead of the advent of “open skies” between Europe and the US in April next year. This will move restrictions on flights from Heathrow to the US, and open up BA to open competition on transatlantic routes for the first time.
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Comment: Clear skies
Analysts at ABN Amro today published research suggesting that flights across the Atlantic account for 65% of BA’s profits, and that open skies could see profits from those routes fall by between 25 to 53%.
Slots on Heathrow’s runways are the most sought after in world aviation. The airport’s two runways operate at 98.5% capacity. The only free slots left at the airport are late at night, too late to be attractive to most airlines. Heathrow's owner BAA, was today referred by the Office of Fair Trading to the Competition Commission for an inquiry that could eventually lead to its break-up. BAA faces a separate Competition Commission review into proposed charges to airlines at its UK airports.
Slot-trading is regarded by some as illegal, but despite this there is a thriving grey market. Few deals are disclosed publicly, although BA has in the past given some details of its transactions. Its previous biggest deal was in 2003, when it bought eight pairs of slots from Swissair, the Swiss flag carrier that later collapsed in financial turmoil.
Airline executives said that the price paid by BA appeared cheap. “Paying £3.4m per pair (the normal method for valuing slots) seems a very good deal. Pairs have changed hands for £10m,” one said.
BMI recently bought a British Mediterranean Airways, a BA franchise airline, for £30m. British Mediterranean flies to central Asia and Syria and Lebanon in BA colours and using BA flight codes. BA could have stopped the sale under the terms of the franchise agreement, but did not.
But a BA source today denied there was any connection between the two transactions. “The slot deal has nothing to do with British Mediterranean,” the source said.
March 30, 2007
BA strikes secret Heathrow slots deal with BMI
British Airways, under transatlantic pressure from 'open skies', is understood to have paid £30 million for 51 slots a week
Dominic O’Connell, Deputy Business Editor, The Sunday Times
British Airways has struck a secret deal to buy a parcel of lucrative runway slots at Heathrow from BMI British Midland, one of its biggest airline rivals.
The transaction, the biggest of its kind in recent years, will add to the speculation over the future of BMI, which is regarded as a prime takeover target thanks to its ownership of 12% of Heathrow’s scarce runway capacity.
Although neither company would comment on the deal today, it is understood BA paid around £30 million for 51 slots a week.
BA is eager to buttress its position at Heathrow ahead of the advent of “open skies” between Europe and the US in April next year. This will move restrictions on flights from Heathrow to the US, and open up BA to open competition on transatlantic routes for the first time.
Related Links
Comment: Clear skies
Analysts at ABN Amro today published research suggesting that flights across the Atlantic account for 65% of BA’s profits, and that open skies could see profits from those routes fall by between 25 to 53%.
Slots on Heathrow’s runways are the most sought after in world aviation. The airport’s two runways operate at 98.5% capacity. The only free slots left at the airport are late at night, too late to be attractive to most airlines. Heathrow's owner BAA, was today referred by the Office of Fair Trading to the Competition Commission for an inquiry that could eventually lead to its break-up. BAA faces a separate Competition Commission review into proposed charges to airlines at its UK airports.
Slot-trading is regarded by some as illegal, but despite this there is a thriving grey market. Few deals are disclosed publicly, although BA has in the past given some details of its transactions. Its previous biggest deal was in 2003, when it bought eight pairs of slots from Swissair, the Swiss flag carrier that later collapsed in financial turmoil.
Airline executives said that the price paid by BA appeared cheap. “Paying £3.4m per pair (the normal method for valuing slots) seems a very good deal. Pairs have changed hands for £10m,” one said.
BMI recently bought a British Mediterranean Airways, a BA franchise airline, for £30m. British Mediterranean flies to central Asia and Syria and Lebanon in BA colours and using BA flight codes. BA could have stopped the sale under the terms of the franchise agreement, but did not.
But a BA source today denied there was any connection between the two transactions. “The slot deal has nothing to do with British Mediterranean,” the source said.
Join Date: Jan 2001
Location: uk
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Good way of shedding the Bmed Franchise link, but getting the slots back for your other routes.
Get someone to buy the airline and then sell you the slots back for the same price. BMI get Bmed for nothing.
BA get the slots they want.
Get someone to buy the airline and then sell you the slots back for the same price. BMI get Bmed for nothing.
BA get the slots they want.
Join Date: Jan 2007
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Info
Anybody know which slots have been bought and what type of flights they could be used for?
I thought slots were always sold in 'pairs', so what would 51 buy you?
Thanks in advance
I thought slots were always sold in 'pairs', so what would 51 buy you?
Thanks in advance
Join Date: Mar 2005
Location: U.K, I think.....
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Good way of shedding the Bmed Franchise link, but getting the slots back for your other routes.
Get someone to buy the airline and then sell you the slots back for the same price. BMI get Bmed for nothing.
BA get the slots they want
Get someone to buy the airline and then sell you the slots back for the same price. BMI get Bmed for nothing.
BA get the slots they want
Are you sure of this? I was under the impression the bmed slots were already BA's. If not then as you say, looks very much like a deal was done that both parties were happy with. Must admit was surprised when the Bmed deal happened as I thought bmi had very little in the way of spare cash floating around in the first place....
On the other hand, if you believe Mr T... see page 2
http://www.pprune.org/forums/showthread.php?t=262706
Last edited by Orp Tolip; 30th Mar 2007 at 19:18. Reason: to add link to other thread
Join Date: Mar 2007
Location: Near MAN
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Rumour has it that Gb's future plans incorporate some similar deal with their LHR slots to protect the franchise.
There is a popular misconception that BA owns the slots and routes that the franchises fly - not so, thus GB's value on LHR alone at these rates is quite substantial. I am told that resistance is futile, i will be assimilated!!
There is a popular misconception that BA owns the slots and routes that the franchises fly - not so, thus GB's value on LHR alone at these rates is quite substantial. I am told that resistance is futile, i will be assimilated!!
Join Date: Nov 2006
Location: XUMAT
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Much of it depends on the timing. As ever the devil is in the detail.
BMI might have offloaded some of their less attractive slots whilst retaining any of the better ones BMed brought with them. At face value the report doesn't actually give much detail.
BMI might have offloaded some of their less attractive slots whilst retaining any of the better ones BMed brought with them. At face value the report doesn't actually give much detail.
Join Date: Apr 2002
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With BA buying these slots what they got planned we know they are planning to move Houston to LHR before march 30 followed by Dallas and Atlanta, thats 3 lh routes that are daily what will they get in return !
Join Date: Nov 2006
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not a dig, just an observation after lots of BA flying from all of the London airports that - in general - the crews flying from Gatwick seem happier than the ones at Heathrow.
If the cabin crew's experience of working from the airports is similar to that of the passengers flying from them, perhaps this shouldn't be a surprise.
13Alpha
If the cabin crew's experience of working from the airports is similar to that of the passengers flying from them, perhaps this shouldn't be a surprise.
13Alpha
Join Date: Dec 2003
Location: UK
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Fast tracking of the third runway? interesting to see what HACAN et al would make of this.
http://www.uk-airport-news.info/heat...ws-020407c.htm
http://www.uk-airport-news.info/heat...ws-020407c.htm
Join Date: Jun 2004
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I hope this is the correct thread to post this but having whinged in the past about the delays experienced at LHR and other British airports can i express my thanks for a speedy passage through T3 last night.
Arrived just after 1900 and after a fast track through Immigration was pleasantly surprised to find my 3 large bags already on the carousel when i arrived at baggage collection.. I doubt if i could have got from the aircraft to baggage collection any quicker so to be beaten by the bags is impressive, thanks...
Arrived just after 1900 and after a fast track through Immigration was pleasantly surprised to find my 3 large bags already on the carousel when i arrived at baggage collection.. I doubt if i could have got from the aircraft to baggage collection any quicker so to be beaten by the bags is impressive, thanks...
