BMed
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BMED bought by bmi (Enthusiasts thread)
As of this afternoon bmi have bought a 99% controlling stake in BMED with the remainder to be bought in the near future.
17 new destinations 8 new aircraft 770 new staff!
BA Franchise will terminate in October.
17 new destinations 8 new aircraft 770 new staff!
BA Franchise will terminate in October.
Join Date: Oct 2001
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Internal communication issued bmi staff:
Dear Colleague
We have today announced that the bmi group holding company British Midland plc has acquired control of the Heathrow-based airline British Mediterranean (BMED). Our holding company has subscribed to new shares in BMED which will effectively give bmi a 99 percent controlling stake in the airline. In due course we plan to buy out the remaining minority shareholders.
All existing non-executive directors of BMED have today resigned their positions and I have joined their board along with Sir Michael and Tim Bye. David Richardson, chief executive of BMED will retain his position and report directly to me.
We are extremely pleased with the arrangements we have been able to agree with the current board of BMED and the majority shareholders. We have been aware for some time of the opportunity that existed at BMED but have only recently been in a position to enter into a meaningful dialogue with them.
Bringing BMED into the bmi group offers tremendous opportunities for the growth and development of our businesses. It places BMED in our family of airlines where we have a significant presence and standing in a wide range of markets. We will be creating an operation with a turnover in excess of £1 billion a year. It also enables the bmi group to accelerate its strategy of expansion into the medium-haul markets of BMED. They operate to 17 destinations in 16 countries and there is no overlap with any of our own current routes. Many of the BMED destinations have restricted access to the market due to existing bi-lateral agreements that would have taken us a considerable amount of time to gain access to. There are also a number of clear business synergies between our two organisations. Like bmi, BMED is an established Heathrow-based carrier also operating Airbus A320 and A321 aircraft with IAE engines and, like our own medium-haul product, they have a two class cabin. Improved network opportunities will also exist through our respective Heathrow operations.
The opportunity for us to expand the bmi group in this way is yet again a clear vote of confidence by the shareholders and their commitment to grow our business. BMED is a first class airline whose staff have worked hard on developing an extensive route network and a reputation for delivering an excellent product and service. I look forward to working with them to rebuild their business after some difficult times over the past few months. We have already reached an agreement with British Airways that will see the franchise agreement and any other commercial agreements that exist with BMED continuing for a transitionary period until the end of the Summer 2007 timetable.
In the short term we plan for the business to continue to operate as it does today with no immediate changes to network or structure. A comprehensive review of the business will take place over the next 30 days. For those of you not too familiar with BMED here are some interesting facts about them:
• Formally known as British Mediterranean, BMED was established as a limited company in 1994 by a group of private investors
• BMED has operated as an independent franchise partner of British Airways since 1997
• BMED flies under the British Airways brand and utilises British Airways livery and flight codes. BA is the worldwide sales agent for BMED
• BMED has a fleet of three Airbus A320 and five Airbus A321 Aircraft
• The airline flies to 17 destinations in 16 countries throughout Africa, the Middle East and Central Asia and has 770 employees
We start the year off with more exciting news about the bmi group and I am sure you would wish to join me in giving BMED and their staff a warm welcome into the bmi group of airlines.
Kind regards
Nigel
Dear Colleague
We have today announced that the bmi group holding company British Midland plc has acquired control of the Heathrow-based airline British Mediterranean (BMED). Our holding company has subscribed to new shares in BMED which will effectively give bmi a 99 percent controlling stake in the airline. In due course we plan to buy out the remaining minority shareholders.
All existing non-executive directors of BMED have today resigned their positions and I have joined their board along with Sir Michael and Tim Bye. David Richardson, chief executive of BMED will retain his position and report directly to me.
We are extremely pleased with the arrangements we have been able to agree with the current board of BMED and the majority shareholders. We have been aware for some time of the opportunity that existed at BMED but have only recently been in a position to enter into a meaningful dialogue with them.
Bringing BMED into the bmi group offers tremendous opportunities for the growth and development of our businesses. It places BMED in our family of airlines where we have a significant presence and standing in a wide range of markets. We will be creating an operation with a turnover in excess of £1 billion a year. It also enables the bmi group to accelerate its strategy of expansion into the medium-haul markets of BMED. They operate to 17 destinations in 16 countries and there is no overlap with any of our own current routes. Many of the BMED destinations have restricted access to the market due to existing bi-lateral agreements that would have taken us a considerable amount of time to gain access to. There are also a number of clear business synergies between our two organisations. Like bmi, BMED is an established Heathrow-based carrier also operating Airbus A320 and A321 aircraft with IAE engines and, like our own medium-haul product, they have a two class cabin. Improved network opportunities will also exist through our respective Heathrow operations.
The opportunity for us to expand the bmi group in this way is yet again a clear vote of confidence by the shareholders and their commitment to grow our business. BMED is a first class airline whose staff have worked hard on developing an extensive route network and a reputation for delivering an excellent product and service. I look forward to working with them to rebuild their business after some difficult times over the past few months. We have already reached an agreement with British Airways that will see the franchise agreement and any other commercial agreements that exist with BMED continuing for a transitionary period until the end of the Summer 2007 timetable.
In the short term we plan for the business to continue to operate as it does today with no immediate changes to network or structure. A comprehensive review of the business will take place over the next 30 days. For those of you not too familiar with BMED here are some interesting facts about them:
• Formally known as British Mediterranean, BMED was established as a limited company in 1994 by a group of private investors
• BMED has operated as an independent franchise partner of British Airways since 1997
• BMED flies under the British Airways brand and utilises British Airways livery and flight codes. BA is the worldwide sales agent for BMED
• BMED has a fleet of three Airbus A320 and five Airbus A321 Aircraft
• The airline flies to 17 destinations in 16 countries throughout Africa, the Middle East and Central Asia and has 770 employees
We start the year off with more exciting news about the bmi group and I am sure you would wish to join me in giving BMED and their staff a warm welcome into the bmi group of airlines.
Kind regards
Nigel
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BMI Press release
bmi acquires control of British Mediterranean
release date: 02/02/2007
British Midland plc announces that it has acquired control of the Heathrow-based BA franchise airline British Mediterranean (BMED). British Midland is the group holding company of bmi and has subscribed to approximately £30 million of new shares in BMED.
bmi’s chairman Sir Michael Bishop, chief executive officer Nigel Turner and deputy chief executive officer Tim Bye have been appointed to the BMED board with immediate effect. David Richardson will retain his position as chief executive reporting directly to Nigel Turner. All existing non-executive directors of BMED have today resigned their positions.
Nigel Turner, chief executive officer of the bmi group, said: “Bringing BMED into the bmi group creates a business with a turnover in excess of £1 billion with substantial growth opportunities. The acquisition enables the bmi group to accelerate its strategy of expansion into medium-haul markets. BMED operates to 17 destinations in 16 countries and has no overlap with any current bmi route. Many of these destinations have restricted access to the market due to existing bi-lateral agreements. Synergies include BMED’s Heathrow base and the fact that it operates IAE engined Airbus A320 and 321 aircraft in a two class configuration.
“BMED has a first class workforce and they will be welcomed into the bmi group and we look forward to working with them to rebuild the business after some difficult times over the past few months. In the short term we plan for the business to continue to operate as it does today with no immediate changes to network or structure. A comprehensive review of the business will take place over the next 30 days.”
An agreement has been reached with British Airways that will see the franchise agreement and any other commercial agreements that exist with them continuing for a transitionary period until the end of the summer 2007 timetable
bmi acquires control of British Mediterranean
release date: 02/02/2007
British Midland plc announces that it has acquired control of the Heathrow-based BA franchise airline British Mediterranean (BMED). British Midland is the group holding company of bmi and has subscribed to approximately £30 million of new shares in BMED.
bmi’s chairman Sir Michael Bishop, chief executive officer Nigel Turner and deputy chief executive officer Tim Bye have been appointed to the BMED board with immediate effect. David Richardson will retain his position as chief executive reporting directly to Nigel Turner. All existing non-executive directors of BMED have today resigned their positions.
Nigel Turner, chief executive officer of the bmi group, said: “Bringing BMED into the bmi group creates a business with a turnover in excess of £1 billion with substantial growth opportunities. The acquisition enables the bmi group to accelerate its strategy of expansion into medium-haul markets. BMED operates to 17 destinations in 16 countries and has no overlap with any current bmi route. Many of these destinations have restricted access to the market due to existing bi-lateral agreements. Synergies include BMED’s Heathrow base and the fact that it operates IAE engined Airbus A320 and 321 aircraft in a two class configuration.
“BMED has a first class workforce and they will be welcomed into the bmi group and we look forward to working with them to rebuild the business after some difficult times over the past few months. In the short term we plan for the business to continue to operate as it does today with no immediate changes to network or structure. A comprehensive review of the business will take place over the next 30 days.”
An agreement has been reached with British Airways that will see the franchise agreement and any other commercial agreements that exist with them continuing for a transitionary period until the end of the summer 2007 timetable
Join Date: Jun 1999
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The only thing that's apparent that there's bread in the company and that they are happy shoppers at the top.
baby investment in metal will have to begin soon if we are to carry on flying the programme at all......
baby investment in metal will have to begin soon if we are to carry on flying the programme at all......
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BMED hold £30 million investment talks with M1 Group
The Directors of BMED, the franchise partner of British Airways, announce that they are in advanced talks with a UK based investor group which may lead to a change in the Company’s ownership accompanied by a £30 million investment designed to reduce BMED borrowing and fund the airline’s ongoing expansion.
The investor group includes a subsidiary of M1 Group which has investments in a number of European countries including the UK, Switzerland and Monaco, and in Lebanon. M1 Group’s business interests include property, telecoms, oil and gas and aviation. M1 Group is controlled by members of the Mikati family, one of Lebanon's most prominent business groups.
Under the proposed transaction, which has yet to be finalised and is subject to contract, due diligence and the approval of BMED shareholders, it is envisaged that BMED and the investor group will enter into an agreement which will provide for an investment of £30 million in return for majority control of the airline. The Directors of BMED are hopeful that they will be in a position to put firm proposals to shareholders later this month. As a demonstration of good faith, the investor group has advanced £3m to BMED by way of a term loan to help meet the immediate liquidity requirements of the company.
David Richardson, Chief Executive of BMED, commented: “It is no secret that the war in Lebanon and the upsurge in jet fuel prices impacted hard on BMED’s bottom line. During recent months the Board, advised by Rothschild, has considered a range of strategic options designed to restore the Company to profitability and has held discussions with a number of interested parties. While the proposed transaction is severely dilutive of present shareholders’ interests, the Board is confident that the proposal, albeit yet to be finalised, is in the airline’s best long-term interests.”
BMED will issue a further statement in due course.
The Directors of BMED, the franchise partner of British Airways, announce that they are in advanced talks with a UK based investor group which may lead to a change in the Company’s ownership accompanied by a £30 million investment designed to reduce BMED borrowing and fund the airline’s ongoing expansion.
The investor group includes a subsidiary of M1 Group which has investments in a number of European countries including the UK, Switzerland and Monaco, and in Lebanon. M1 Group’s business interests include property, telecoms, oil and gas and aviation. M1 Group is controlled by members of the Mikati family, one of Lebanon's most prominent business groups.
Under the proposed transaction, which has yet to be finalised and is subject to contract, due diligence and the approval of BMED shareholders, it is envisaged that BMED and the investor group will enter into an agreement which will provide for an investment of £30 million in return for majority control of the airline. The Directors of BMED are hopeful that they will be in a position to put firm proposals to shareholders later this month. As a demonstration of good faith, the investor group has advanced £3m to BMED by way of a term loan to help meet the immediate liquidity requirements of the company.
David Richardson, Chief Executive of BMED, commented: “It is no secret that the war in Lebanon and the upsurge in jet fuel prices impacted hard on BMED’s bottom line. During recent months the Board, advised by Rothschild, has considered a range of strategic options designed to restore the Company to profitability and has held discussions with a number of interested parties. While the proposed transaction is severely dilutive of present shareholders’ interests, the Board is confident that the proposal, albeit yet to be finalised, is in the airline’s best long-term interests.”
BMED will issue a further statement in due course.
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Well this is my take on it,
BMI are trying to position themselves as a medium-longhaul airline as they can no longer compete with the locos under their current business plan. I suppose buying Bmed is a logical move for them as that means they do not need to worry about expanding, its all done for them already.
Unfortunatley however, BA now lose their presence in these countries and considering the volitile nature of many of the countries involved and the fact that the majority could not support two carriers I seriously doubt we will see areturn of BA or a franchise into them! Also the strict bilateral rights with many of the countries also prevents further competition.
However, Bmed have not been the most profitable of airlines and BMI seems to be in limbo as to where its going in the industry...could this just be a desperate attempt at regaining market share?
BMI are trying to position themselves as a medium-longhaul airline as they can no longer compete with the locos under their current business plan. I suppose buying Bmed is a logical move for them as that means they do not need to worry about expanding, its all done for them already.
Unfortunatley however, BA now lose their presence in these countries and considering the volitile nature of many of the countries involved and the fact that the majority could not support two carriers I seriously doubt we will see areturn of BA or a franchise into them! Also the strict bilateral rights with many of the countries also prevents further competition.
However, Bmed have not been the most profitable of airlines and BMI seems to be in limbo as to where its going in the industry...could this just be a desperate attempt at regaining market share?
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Seems apaddyinuk you are spot on in your market take according to the latest release.
'' BMI’s acquisition of control of British Airways (BA) franchise partner British Mediterranean (BMed) provides the group with a string of new routes to Africa, the Middle East and Central Asia, with no overlap to its existing route structure.
BMI, already with a strong presence in the domestic and European market, has over the last couple of years developed its network from London Heathrow into the Middle East and Russia. It has introduced routes to Jeddah and Riyadh in Saudi Arabia, and a service to Moscow in co-operation with Transaero, with ambitions to further develop its medium-haul network.
In today announcing a deal to acquire control of BMed, BMI chief executive Nigel Turner says it enables the group to accelerate its strategy of expansion into medium haul routes.
BMed operates a network of 17 destinations out of Heathrow to Africa, the Middle East and Central Asia. The destinations include: Yerevan in Amenia; Baku in Azerbaijan; Tbilisi in Georgia, Tehran in Iran; Almaty in Kazakstan, Bishkek in Kyrgystan; Ekaterinburg in Russia, Ankara in Turkey; Amman in Jordan, Beirut in Lebanon and Damascus in Syria.
It also serves several points in Africa, including Alexandria in Egypt; Addis Ababa in Ethiopia; Dakar in Senegal, Freetown in Sierra Leone and Khartoum in Sudan. BMI currently operates no flights to Africa in its own right.
Turner also notes the synergies between the two include both carriers being Airbus IAE V2500-powered narrowbody aircraft operators. BMI currently operates 28 Airbus aircraft, predominantly comprising A320 family aircraft, on its mainline services''
ATI
'' BMI’s acquisition of control of British Airways (BA) franchise partner British Mediterranean (BMed) provides the group with a string of new routes to Africa, the Middle East and Central Asia, with no overlap to its existing route structure.
BMI, already with a strong presence in the domestic and European market, has over the last couple of years developed its network from London Heathrow into the Middle East and Russia. It has introduced routes to Jeddah and Riyadh in Saudi Arabia, and a service to Moscow in co-operation with Transaero, with ambitions to further develop its medium-haul network.
In today announcing a deal to acquire control of BMed, BMI chief executive Nigel Turner says it enables the group to accelerate its strategy of expansion into medium haul routes.
BMed operates a network of 17 destinations out of Heathrow to Africa, the Middle East and Central Asia. The destinations include: Yerevan in Amenia; Baku in Azerbaijan; Tbilisi in Georgia, Tehran in Iran; Almaty in Kazakstan, Bishkek in Kyrgystan; Ekaterinburg in Russia, Ankara in Turkey; Amman in Jordan, Beirut in Lebanon and Damascus in Syria.
It also serves several points in Africa, including Alexandria in Egypt; Addis Ababa in Ethiopia; Dakar in Senegal, Freetown in Sierra Leone and Khartoum in Sudan. BMI currently operates no flights to Africa in its own right.
Turner also notes the synergies between the two include both carriers being Airbus IAE V2500-powered narrowbody aircraft operators. BMI currently operates 28 Airbus aircraft, predominantly comprising A320 family aircraft, on its mainline services''
ATI
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Maxnightstop
Under the new investment and the stated BMI plans, BMED staff appear to have a future and therefore I make the assumption that employment is secure even if job titles may change.
Maybe with the 5 A321 on order for BMED there is also a future for the excess BMI Captains.
Time will, of course, be the only true judge.
Under the new investment and the stated BMI plans, BMED staff appear to have a future and therefore I make the assumption that employment is secure even if job titles may change.
Maybe with the 5 A321 on order for BMED there is also a future for the excess BMI Captains.
Time will, of course, be the only true judge.
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A tad ungrateful 10year!
Without the BA franchise for the last 10 years I very much doubt there would have been a BMED for you to work for. 
Looking forward to seeing an A321 in full BMI livery though as there have been none so far.
Looking forward to seeing an A321 in full BMI livery though as there have been none so far.
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Speedmarque is right in terms of franchise partnership, but that franchise could have been structured with any one of several airlines and in many different ways - including the BMI acquisition as we have witnessed this afternoon.
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hi
not really ungrateful - but BA and taken plenty off us in the last few years - time to go our separate ways, put it all behind us and start again with a new business partner.
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How much does it cost to repaint eight A32x aircraft then? I assume they'll need a paint job in October, if not before. I assume there's also downtime associated with it that can't necessarily be combined with other servicing.
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eh, they'll likely not paint over all of them before the transition. They're more likely to slap some labels on them until they can rotate them through maintenance or a paint shop. Happens frequently with seasonal leases and mergers.
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Fargoo
Strange how this was issued a bit back, does British Midland form part of the "M1 Group" ? Thought there was some North African money on the table?
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Try getting off yer semi retired booty!
And how many LHR slots does BMed bring to the new owners ?
Try a search or a bit of reading. Of course, if you have something constructive to add or a point to make for the good people of BMED/BMI, we await with eager anticipation.
If you really can't be arsed, try multiplying the number of aircraft with an integer between 0 and 2.
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I was told the present owners of BMED had plenty of money in their own banks to keep the company going but were not prepared to put in good money after bad.I'm afraid the good days of Hetherington and Rowley(both great guys) have well and truely gone.
I wish everyone well for the future,your a great bunch.
I wish everyone well for the future,your a great bunch.