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Think you will find, as so often is the case, that the truth lies somewhere between the optimists and the doom merchants. I don't think there are many who who foresee Midland in its present form 10 or even 5 years from now. But it is not just going to disappear overnight either. It is still a cash rich airline with a shrewd Chairman.
The only certainty in our industry is uncertainty.
Think you will find, as so often is the case, that the truth lies somewhere between the optimists and the doom merchants. I don't think there are many who who foresee Midland in its present form 10 or even 5 years from now. But it is not just going to disappear overnight either. It is still a cash rich airline with a shrewd Chairman.
The only certainty in our industry is uncertainty.
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Originally Posted by INKJET
It remains a viable business with cash and not to much debt, like wise the pension shortfall does not run into billion's. There are of course many problem left unsolved, but that applies to BA on it's shorthaul network, with just 20 months left to work or die.
Viktor
Viktor
Last edited by concorde001; 6th Apr 2006 at 14:29.
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By the looks of things, BA's pension problems should be resolved (in terms of coming to an agreement with unions) by this year. Here is the agreement:
http://www.britishairways.com/travel...s/public/en_gb
If accepted, the pension deficit should be cut down significantly.
As for open skies, I think BA will be able to compete when it comes into operation. It looks like open skies will not mean BA giving up slots at LHR, therefore while all US airlines will be theoretically allowed to operate into LHR, it is doubtful they will be able to gain enough slots before 2010/11 (when mixed ops at LHR begin) to pose a significant threat to BA. Also if BA and AA are granted ATI (Anti Trust Immunity), which is dependent upon open skies, BA's US operations will be strengthened, making it and AA the airlines with greatest frequency and coverage to and from the US.
Once Open Skies has begun and BA have completed their move to T5, pensions and fleet renewal completed, you will see BA making its move in the process of European airline consolidation. Expect a AF/KL type merger or LH/LX takeover from BA for IB or AY.
I think BA has a bright future ahead. They are investing in new technology and onboard products like mad and taking the right steps to become a more efficient and lean business. Virgin Atlantic is another airline which seems to be focussed, but I am concerned about how VS will cope when Open Skies begins - while they have a great product, they don't have the slots to compete effectively or an alliance partner. For example BA has 7 daily LHR-JFK, 3 daily LHR-EWR and fellow partner AA has 5 daily LHR-JFK. VS on the other hand only has 3 daily LHR-JFK and 3 daily LHR-EWR. With US operations accounting for over 60/70% of revenue, the impact will be great. You can see why SRB and VS are keen to merge with BD.
As for BD, while Open Skies will allow them to operate US flights from LHR, where will they get the aircraft from? If they want to utilise their present aircraft of 3 A330s, it will mean BOM, RUH, ORD and JED will have to be sacrificed. If howver they do decide to place an order, how will they finance it with operating profits of £5m, which incidentally is being achieved with the help of LH/SK?
While it is great news that bmi reported a profit instead of a loss, there are still many obstacles ahead. I wish bmi and their staff all the best.
http://www.britishairways.com/travel...s/public/en_gb
If accepted, the pension deficit should be cut down significantly.
As for open skies, I think BA will be able to compete when it comes into operation. It looks like open skies will not mean BA giving up slots at LHR, therefore while all US airlines will be theoretically allowed to operate into LHR, it is doubtful they will be able to gain enough slots before 2010/11 (when mixed ops at LHR begin) to pose a significant threat to BA. Also if BA and AA are granted ATI (Anti Trust Immunity), which is dependent upon open skies, BA's US operations will be strengthened, making it and AA the airlines with greatest frequency and coverage to and from the US.
Once Open Skies has begun and BA have completed their move to T5, pensions and fleet renewal completed, you will see BA making its move in the process of European airline consolidation. Expect a AF/KL type merger or LH/LX takeover from BA for IB or AY.
I think BA has a bright future ahead. They are investing in new technology and onboard products like mad and taking the right steps to become a more efficient and lean business. Virgin Atlantic is another airline which seems to be focussed, but I am concerned about how VS will cope when Open Skies begins - while they have a great product, they don't have the slots to compete effectively or an alliance partner. For example BA has 7 daily LHR-JFK, 3 daily LHR-EWR and fellow partner AA has 5 daily LHR-JFK. VS on the other hand only has 3 daily LHR-JFK and 3 daily LHR-EWR. With US operations accounting for over 60/70% of revenue, the impact will be great. You can see why SRB and VS are keen to merge with BD.
As for BD, while Open Skies will allow them to operate US flights from LHR, where will they get the aircraft from? If they want to utilise their present aircraft of 3 A330s, it will mean BOM, RUH, ORD and JED will have to be sacrificed. If howver they do decide to place an order, how will they finance it with operating profits of £5m, which incidentally is being achieved with the help of LH/SK?
While it is great news that bmi reported a profit instead of a loss, there are still many obstacles ahead. I wish bmi and their staff all the best.
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Originally Posted by INKJET
BA is fast becoming a pension company that happens to own a few aircraft. It pension debt to market cap: is the worst in Europe. The pension short fall is more than 4 times BA worth.Viktor
Certainly not the same ones as everyone else. Look again.
(PS Great plagurising of the much lauded Pension fund which owns a few aircraft... )
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bmi making a profit!
What excellent news!
Now they can wind their neck in about being unable to sustain the pension scheme, can't they. Hmm?
This assumes that the workforce don't commit hari-kari and simply give it away.
What excellent news!
Now they can wind their neck in about being unable to sustain the pension scheme, can't they. Hmm?
This assumes that the workforce don't commit hari-kari and simply give it away.
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Originally Posted by Big Kahuna Burger
What figures are you using Inkjet???
Certainly not the same ones as everyone else. Look again.
(PS Great plagurising of the much lauded Pension fund which owns a few aircraft... )
Certainly not the same ones as everyone else. Look again.
(PS Great plagurising of the much lauded Pension fund which owns a few aircraft... )
INKJET
Once again, can you tell me what spurious figures you are using to make this claim. They are clearly factually incorrect. Please enlighten me.
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Avaliable to book and has been for a couple of months!
What do you mean " come to their senses", this route will make money just like the Groningen route from Aberdeen, thanks to guaranteed seat purchases.
FF
What do you mean " come to their senses", this route will make money just like the Groningen route from Aberdeen, thanks to guaranteed seat purchases.
FF
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Originally Posted by Big Kahuna Burger
INKJET
Once again, can you tell me what spurious figures you are using to make this claim. They are clearly factually incorrect. Please enlighten me.
Once again, can you tell me what spurious figures you are using to make this claim. They are clearly factually incorrect. Please enlighten me.
INKJET.....
Ill try ONE FINAL TIME......
Please show me your mathmatical workings to prove your suggestion that.....
Originally Posted by INKJET
[BA's...] pension short fall is more than 4 times BA worth.Viktor
Im waiting.....
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And the Bmi crew are 100% about their pension are they ?????
The outcome will speak for itself.
I know what it'll be.
I'll be back to say "I told you so."
Good luck with a happy old age, everyone at bmi. You'll need it unless you buck up.
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A lot of the speculation about bmi's future has been around VS but I wonder now that an openskies has been signed between Canada and UK whether AC would be interested in assuming some of the stakes in bmi.
When US/HP merged, both airlines weren't in great shape. AC pumped in $75 million which seemed like madness, but they have recently sold a portion of the stake at a price which recoups almost all the investment. With that stake came agreement for AC Maintenance to do work for US/HP and Aeroplan to manage the FF programme.
LHR is AC's largest overseas port (100 flights/week). Assuming Robert Milton could talk sense into MB (in a way LH and SK don't seem to have been), AC might gain similar concessions as at US/HP as well as bmi LHR slots for 5th freedom flights to Africa with their soon-to-arrive 777/787 fleet, a market they have no presence in but a lot of people in these parts visit.
When US/HP merged, both airlines weren't in great shape. AC pumped in $75 million which seemed like madness, but they have recently sold a portion of the stake at a price which recoups almost all the investment. With that stake came agreement for AC Maintenance to do work for US/HP and Aeroplan to manage the FF programme.
LHR is AC's largest overseas port (100 flights/week). Assuming Robert Milton could talk sense into MB (in a way LH and SK don't seem to have been), AC might gain similar concessions as at US/HP as well as bmi LHR slots for 5th freedom flights to Africa with their soon-to-arrive 777/787 fleet, a market they have no presence in but a lot of people in these parts visit.
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MarkD:
Be under no illusions MB does not do anything that does not suit him. Both SAS and LH (two pretty big companies no less) have failed with their own plans to invest in bmi (small fry) and got nothing but a cash cow, yet bmi has "survived" because of it?
6
Be under no illusions MB does not do anything that does not suit him. Both SAS and LH (two pretty big companies no less) have failed with their own plans to invest in bmi (small fry) and got nothing but a cash cow, yet bmi has "survived" because of it?
6
March stats for Heathrow routes. Still not looking too good.
ABERDEEN 17,112 19,051 (1,939) -10.2%
ALICANTE 5,706 9,129 (3,423) -37.5%
AMSTERDAM 46,882 45,029 1,853 4.1%
BELFAST CITY 59,059 62,624 (3,565) -5.7%
BRUSSELS 24,877 28,962 (4,085) -14.1%
DUBLIN 52,797 55,781 (2,984) -5.3%
DURHAM TV 10,784 15,715 (4,931) -31.4%
EDINBURGH 50,629 58,444 (7,815) -13.4%
GLASGOW 43,308 52,881 (9,573) -18.1%
HANOVER 8,328 11,940 (3,612) -30.3%
INVERNESS 3,680 4,838 (1,158) -23.9%
LEEDS BRADFORD 14,706 15,605 (899) -5.8%
LYON 2,943 2,943 #DIV/0!
MADRID 4,485 7,982 (3,497) -43.8%
MANCHESTER 33,407 44,106 (10,699) -24.3%
MILAN LINATE 1,996 6,712 (4,716) -70.3%
NAPLES 1,068 5,716 (4,648) -81.3%
NICE 3,241 6,909 (3,668) -53.1%
PALMA 5,794 6,838 (1,044) -15.3%
PARIS CDG 20,526 31,463 (10,937) -34.8%
VENICE 6,795 7,245 (450) -6.2%
TOTALS 418,123 496,970 (78,847) -15.9%
ABERDEEN 17,112 19,051 (1,939) -10.2%
ALICANTE 5,706 9,129 (3,423) -37.5%
AMSTERDAM 46,882 45,029 1,853 4.1%
BELFAST CITY 59,059 62,624 (3,565) -5.7%
BRUSSELS 24,877 28,962 (4,085) -14.1%
DUBLIN 52,797 55,781 (2,984) -5.3%
DURHAM TV 10,784 15,715 (4,931) -31.4%
EDINBURGH 50,629 58,444 (7,815) -13.4%
GLASGOW 43,308 52,881 (9,573) -18.1%
HANOVER 8,328 11,940 (3,612) -30.3%
INVERNESS 3,680 4,838 (1,158) -23.9%
LEEDS BRADFORD 14,706 15,605 (899) -5.8%
LYON 2,943 2,943 #DIV/0!
MADRID 4,485 7,982 (3,497) -43.8%
MANCHESTER 33,407 44,106 (10,699) -24.3%
MILAN LINATE 1,996 6,712 (4,716) -70.3%
NAPLES 1,068 5,716 (4,648) -81.3%
NICE 3,241 6,909 (3,668) -53.1%
PALMA 5,794 6,838 (1,044) -15.3%
PARIS CDG 20,526 31,463 (10,937) -34.8%
VENICE 6,795 7,245 (450) -6.2%
TOTALS 418,123 496,970 (78,847) -15.9%