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I have been reading all the comments about the whole idea of EZY or anyone else for that matter buying WW. Ok, if it happened they would be have to inherit some old 737s and merge a different work culture of some sorts into EZY, but this they have done before with Go.
EZY would not worry at all about the aircraft, as they could convert to 319s in no time at all.
The bases in some cases may conflict with local EZY ones. Eg BRS v CWL, LPL v MAN , BHX v EMA etc. However, for eg Manchester and Liverpool can provide enough Business and leisure travellers for each airports business even for 1 airline, in a nut shell what I mean is that neighbouring bases would not threaten each other. Luton has many duplicate services from LTN & STN with EZY and there is no problem.
As regards flying Irish routes from the UK if they took over WW, i cant see FR challenging them on existing routes. When EZY arrived at STN FR didnt launch the same routes for the most part. The two airlines dont actually serve many exact same airport pairs except a few from STN and a few elsewhere. They did react on LGW routes to NOC ORK & SNN but that was new business. What does anyone else think ?
It's an interesting thought that was posted about AB being the likely buyer( assumiong that there is a buyer) . Although there is no facts on the idea of Bmibaby being sold alot of people that are on here and alot of ppl I have spoken to especially at bmi think that bmibay is not being viewed as core to the new strategy.
We will wait & see.
EZY would not worry at all about the aircraft, as they could convert to 319s in no time at all.
The bases in some cases may conflict with local EZY ones. Eg BRS v CWL, LPL v MAN , BHX v EMA etc. However, for eg Manchester and Liverpool can provide enough Business and leisure travellers for each airports business even for 1 airline, in a nut shell what I mean is that neighbouring bases would not threaten each other. Luton has many duplicate services from LTN & STN with EZY and there is no problem.
As regards flying Irish routes from the UK if they took over WW, i cant see FR challenging them on existing routes. When EZY arrived at STN FR didnt launch the same routes for the most part. The two airlines dont actually serve many exact same airport pairs except a few from STN and a few elsewhere. They did react on LGW routes to NOC ORK & SNN but that was new business. What does anyone else think ?
It's an interesting thought that was posted about AB being the likely buyer( assumiong that there is a buyer) . Although there is no facts on the idea of Bmibaby being sold alot of people that are on here and alot of ppl I have spoken to especially at bmi think that bmibay is not being viewed as core to the new strategy.
We will wait & see.
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EI-BUD, thank you for a balanced and well-informed post. As you mentioned, and I stated earlier up in the thread, bmibaby currently are not up for sale, and I am not aware of bmi unofficially putting out a tender to see how much we'd be worth or who might be interested in buying us. However, following the purchase of BMED and the expansion of bmi regional, it seems that the bmi group are now going after niche high yielding markets, realising that their core market of a decade ago being a second player to BA in shorthaul trunk routes, now belongs to EasyJet. They also have to contend with a more efficient BA (though admittedly the last six months haven't really shown this) and a more efficient and environmentally-aware rail network. bmibaby are in the unfortunate situation that our geriatric fleet of aircraft and our spartan route network are all predominantly in low yielding markets where if the fare isn't low, the passenger will either fly the competition or not travel. Simply baby doesn't have the leadership or cost structure to concentrate on this market the same way that an airline like EasyJet or Ryanair can. Though EasyJet have publicly stated they plan for all of their growth to be organic, I think the reason they've been mentioned as an ideal suitor to bmibaby, is because both companies serve primary airports, and bmibaby uses EasyJet's cast-off B733s. EMA/BHX are just up the road from each other, but serve completely different markets, similar to LTN & STN. I'm not so sure EasyJet would be keen to stay at CWL given that their BRS base just up the road is growing successfully, and CWL is really the dustbowl of baby's operations. Manchester, I'm unsure of. EasyJet have been to MAN before to look round, but I wonder if the considerable other low-cost competition (Thomsonfly, Jet2, Monarch Scheduled, Flybe) might put them off.
MBA Exercise
"Outline and explain the strategy being implemented by the BMI group."
An impossible question.
To answer some of the questions posed on this thread from a business point of view.
First, why would EZY purchase BMIbaby? They have already outlined their strategy, which is to grow organically. Acquisitions are expensive and time-consuming and far more fail than succeed. If EZY wanted to build their business quicker, they wouldn't have offloaded their first 'new' 737s. They have plenty of aircraft on order which are efficient, low-maintenance, and planned. If they bought anyone else they would get older, less reliable, less efficient aircraft for their money. No brand is stronger than EZY, so they have little to gain from buying an established brand. (I would imagine EZY is as well known in Birmingham and Cardiff as baby). If they want specific routes, they could compete with baby, charge £0, win the battle, and consolidate their gains - cheaper than acquiring!
(And remember, the Go acquisition was made when EZY were far smaller than now).
Second, what will BMI do with BMED? Answer, get out of the BA franchise asap. It doesn't add much where BMED is the only UK based operator on the route, and the alternative is a rusty Tu154 operated by someone you've never heard of. (OK, a slight exaggeration). Keep up all the routes. Price the tickets for profit. Lots of the destinations served by BMED are used by business people on expenses, so they won't be in a hurry to save cash or fly in a rusty Tu154!
Third, what is the strategy again?
- Regional - Business orientated, full-service UK regional airline with Barbie Jets operating short hops (could be BA Connect in drag?).
- Baby - cherry-picking routes for profit but operating at a disadvantage against more efficient, better-funded rivals such as FR and EZY.
- BMED - High-yield, protected city routes with limited competition. Cash cow. Go for it!
- Mainline - Competing against an improving BA on a small range of LHR routes with a historically better service that has been devalued.
If I were Michael Bishop, I'd ditch baby as soon as possible (but EZY won't be a buyer), concentrate on Regional, going for ex- BACON routes where they are dropped, milk BMED's lucrative routes, and keep mainline for the value of its LHR slots.
And if anyone at BMI wants to offer me a job in strategy, send me a pm!!
An impossible question.
To answer some of the questions posed on this thread from a business point of view.
First, why would EZY purchase BMIbaby? They have already outlined their strategy, which is to grow organically. Acquisitions are expensive and time-consuming and far more fail than succeed. If EZY wanted to build their business quicker, they wouldn't have offloaded their first 'new' 737s. They have plenty of aircraft on order which are efficient, low-maintenance, and planned. If they bought anyone else they would get older, less reliable, less efficient aircraft for their money. No brand is stronger than EZY, so they have little to gain from buying an established brand. (I would imagine EZY is as well known in Birmingham and Cardiff as baby). If they want specific routes, they could compete with baby, charge £0, win the battle, and consolidate their gains - cheaper than acquiring!
(And remember, the Go acquisition was made when EZY were far smaller than now).
Second, what will BMI do with BMED? Answer, get out of the BA franchise asap. It doesn't add much where BMED is the only UK based operator on the route, and the alternative is a rusty Tu154 operated by someone you've never heard of. (OK, a slight exaggeration). Keep up all the routes. Price the tickets for profit. Lots of the destinations served by BMED are used by business people on expenses, so they won't be in a hurry to save cash or fly in a rusty Tu154!
Third, what is the strategy again?
- Regional - Business orientated, full-service UK regional airline with Barbie Jets operating short hops (could be BA Connect in drag?).
- Baby - cherry-picking routes for profit but operating at a disadvantage against more efficient, better-funded rivals such as FR and EZY.
- BMED - High-yield, protected city routes with limited competition. Cash cow. Go for it!
- Mainline - Competing against an improving BA on a small range of LHR routes with a historically better service that has been devalued.
If I were Michael Bishop, I'd ditch baby as soon as possible (but EZY won't be a buyer), concentrate on Regional, going for ex- BACON routes where they are dropped, milk BMED's lucrative routes, and keep mainline for the value of its LHR slots.
And if anyone at BMI wants to offer me a job in strategy, send me a pm!!
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Oh that would be nice!
BMED - High-yield, protected city routes with limited competition. Cash cow. Go for it!
Once upon a time our only competetion would have been the local lot flying a Yak/Tupolev etc...
Nowadays, even the locals have modern equipment and we have western competition from our own Star Alliance colleagues e.g. Lufty.
Ok, admittedly not from LHR, but a large chunk of our business, (and the reason we are/were a BA franchise) is that we continue the journey for transatlantic pax. If your journey starts in USA/Canada you really don't care if you change at London/Paris/Amsterdam/Frankfurt............ Who's going to give you the best service?
The Caspian oil field has given great business over the last 5 years or so, but the pipeline is now complete and Baku is changing..... However, there are other oil/gas fields emerging though so it really needs a marketing team who have got their eye on the ball to meet demand as it develops and get in ahead of the competition. Ditto Africa.
We were a profitable Company not too long ago. But, focus and strategy got sloppy in an extremely volatile market. New management came in a year ago and a broom was swept through a lot of the upper levels to great effect. But unfortunately, a weak company, hit with a double whammy of its sure fire winner (Beriut) plunged into war and the fuel crisis, took us to the brink.
If the wheels are to be believed, they reckon we have a cost base comparable to Easy and Ryan and that's what the BMI Board found attractive (amongst other things).
So, whilst I'm grateful to BMI for my job, I believe it's a two way street. We can certainly bring something to the table and I for one, am looking forward to the challenge.
I don't know how the integration of crews (if any) will happen, but I would suggest that you cast aside any pre-conceived ideas you have about our destinations if you come our way! There are challenges but you WILL have a good time
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"BMI staff travel are apparently not booking manchester - barbados after may 07.
they are telling staff will be re-routed via London.
anyone know whats going on?"
There is plans in the pipe line that they are moving the BGI route to LHR cause it has more oppertunites from LHR once BW have move out of LHR.
they are telling staff will be re-routed via London.
anyone know whats going on?"
There is plans in the pipe line that they are moving the BGI route to LHR cause it has more oppertunites from LHR once BW have move out of LHR.
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LGS6753 Comment on BMI strategy
LGS6753, I read your post re: the strategy of bmi.
Overall I would say you are very close to the mark. However, you said that EZY's strategy would be to 'grow organically', this sounds great but I have to say that if opportunities present themselves many general strategies are sidelined. Case to point out is at FR , MOL had said the same thing pre BUZZ takeover.
You also said 'No brand is stronger than EZY, so they have little to gain from buying an established brand', well I have to say that If Easyjet bought another airline it would be rebranded EZY so this issue would be irrelevant, bmibaby brand would disappear if it was taken over????
Jet2 are coming along nicely and in my view it willl take FR or EZY to contain them. they are boasting about being No.1 operator at MAN. Quite an achievement for a small carrier like LS .
In my view its only a matter of time before either EZY or FR get the deal that they want at MAN . Once BA Connect are gone MAN airport management have new agenda. What does anyone else think ?
Overall I would say you are very close to the mark. However, you said that EZY's strategy would be to 'grow organically', this sounds great but I have to say that if opportunities present themselves many general strategies are sidelined. Case to point out is at FR , MOL had said the same thing pre BUZZ takeover.
You also said 'No brand is stronger than EZY, so they have little to gain from buying an established brand', well I have to say that If Easyjet bought another airline it would be rebranded EZY so this issue would be irrelevant, bmibaby brand would disappear if it was taken over????
Jet2 are coming along nicely and in my view it willl take FR or EZY to contain them. they are boasting about being No.1 operator at MAN. Quite an achievement for a small carrier like LS .
In my view its only a matter of time before either EZY or FR get the deal that they want at MAN . Once BA Connect are gone MAN airport management have new agenda. What does anyone else think ?
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T1 or T4 ?
Does anyone know where Bmed will fly from out of LHR ?
I know they are T4 at the moment, however will they move to T1 when bmi take control ?
From what I understand Bmed and bmi will be different departments, and there isn't enough stands at T1 for the flights as it is so ading exta a/c may be abit of fun.
I know they are T4 at the moment, however will they move to T1 when bmi take control ?
From what I understand Bmed and bmi will be different departments, and there isn't enough stands at T1 for the flights as it is so ading exta a/c may be abit of fun.
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BMI Ireland
Any plans to expand on the DUB service from LHR and maybe try ORK?! Now that they have an Irish website and brand recognition they might as well make the most of it! 
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The bmibaby 4th Aircraft is going the Birmingham!
Increase on schedules at CWL means that they will keep their 3rd aircraft. There will be a new 4 weekly route to Murcia, also there the BFS 2xDaily schedule is move to a more Biz friendly schedule.
Scotland also sees a major expansion-
From September 2007, bmibaby will be increasing the number of daily flights from Edinburgh to Birmingham International to five a day with early morning departures at 7am and 8.45am, offering real choice for the business traveller. Combined with the three times daily service to East Midlands Airport this makes a total of 46 flights per week offered by the airline from Edinburgh to the Midlands.
The airline will also be increasing the number of daily flights from Glasgow International to Birmingham to four services a day. This combined with the current four times daily service from Glasgow International to East Midlands makes a total of 41 flights per week offered by the airline from Glasgow International to the Midlands.
So, this years expansion is complete, schedules are full, except for BHX. There, who knows if there will be more routes. But good news for BHX and CWL. Nothing for EMA, and MAN.
Smile!!!
The airline, which has been embarking on a prolific expansion programme at Birmingham International, will base an additional Boeing 737 aircraft at the airport taking its total fleet to nine. Capacity will increase by a staggering 80% year on year.
Scotland also sees a major expansion-
More daily flights for business travellers from Edinburgh and Glasgow International to the Midlands
bmibaby, the award winning airline with tiny fares and the largest operator of services from Scotland to the Midlands has today (Friday 16 February 2007) announced further development on its network from Scotland.From September 2007, bmibaby will be increasing the number of daily flights from Edinburgh to Birmingham International to five a day with early morning departures at 7am and 8.45am, offering real choice for the business traveller. Combined with the three times daily service to East Midlands Airport this makes a total of 46 flights per week offered by the airline from Edinburgh to the Midlands.
The airline will also be increasing the number of daily flights from Glasgow International to Birmingham to four services a day. This combined with the current four times daily service from Glasgow International to East Midlands makes a total of 41 flights per week offered by the airline from Glasgow International to the Midlands.
Smile!!!
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Baby
Smile
BHX appears to have one spare slot early morning between 26/5/07 and
2/9/07 when Edinburgh gets the last "new" aircraft. Okay it appears
it will be operating through BHX for virtually all of the day and only
N/S EDI.
I assume a couple more new routes for BHX - any ideas bmibaby.com?
I'm glad Cardiff have maintained the third aircraft and hopefully come
2008 it will increase.
I thought BHX might get CDG, with BMI pulling off the LHR (slots) and flybe/BACON in a total mess at Brum. Milan would be another
destination for baby at BHX if they had the aircraft available.
Nothing at Manchester, again I suppose it is aircraft availability
(or should I say funds to purchase).
OP
BHX appears to have one spare slot early morning between 26/5/07 and
2/9/07 when Edinburgh gets the last "new" aircraft. Okay it appears
it will be operating through BHX for virtually all of the day
and onlyN/S EDI.
I assume a couple more new routes for BHX - any ideas bmibaby.com?
I'm glad Cardiff have maintained the third aircraft and hopefully come
2008 it will increase.
I thought BHX might get CDG, with BMI pulling off the LHR (slots) and flybe/BACON in a total mess at Brum. Milan would be another
destination for baby at BHX if they had the aircraft available.
Nothing at Manchester, again I suppose it is aircraft availability
(or should I say funds to purchase).
OP
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bmibaby
Well OltonP, I said BHX had some holes in it. Wheteher they will just sit on the ground doing nothing, or what is unknown too me. It is a bit late to be realesing the rest of their summer schedule later than this.
And the reason for little expansion I dont see mainly as funds. More like the bmi family board room (By that I mean mainly SMB) is like a pre Margaret Thatcher Conservative Cabinet. The only sounds that show life are muffled coughs of geriatric fools. That incapable of running a airline in this 21st centuary theatre means they are only going one way, ... down.
I mean the UKs 3rd largest LO-CO carrier that flys the UK flag (Basically not including RYR) now that Jet2 are the 2nd. And WW are not going too be third for long. I mean how long before Globespan, or some other poor outfit overtake the baby (Not even including TOM), that needs to do a bit of growing up.
The airline really does need a buyout too secure jobs, and the airlines future, as either WW or some other carrier brand. Like a post I made prior about Air Berlin, who I thought would be the best airline too buy WW out, the WW posts diminished after the BMed affair. A losing money carrier with incompetant managemnt buying a losing money outfit? Well it can only lose money cant it. (No question mark here inteneded as practically guarented)
Hope my post has been informative and usefull too you all, Smile!!!
And the reason for little expansion I dont see mainly as funds. More like the bmi family board room (By that I mean mainly SMB) is like a pre Margaret Thatcher Conservative Cabinet. The only sounds that show life are muffled coughs of geriatric fools. That incapable of running a airline in this 21st centuary theatre means they are only going one way, ... down.
I mean the UKs 3rd largest LO-CO carrier that flys the UK flag (Basically not including RYR) now that Jet2 are the 2nd. And WW are not going too be third for long. I mean how long before Globespan, or some other poor outfit overtake the baby (Not even including TOM), that needs to do a bit of growing up.
The airline really does need a buyout too secure jobs, and the airlines future, as either WW or some other carrier brand. Like a post I made prior about Air Berlin, who I thought would be the best airline too buy WW out, the WW posts diminished after the BMed affair. A losing money carrier with incompetant managemnt buying a losing money outfit? Well it can only lose money cant it. (No question mark here inteneded as practically guarented)
Hope my post has been informative and usefull too you all, Smile!!!
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Regarding the recent developments by bmibaby and their obsession with BHX (all 4 a/c are there now) wouldn't it be more appropriate to rename the airline 'birmingham baby' as they seem to care very little about their other bases especially CWL where they have been happy to ramp up PMI to one day but have left thousand of business pax in lurch by downgrading GLA. bmibaby are a joke!
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Baby
Topslide6 - Spot on.
The only criticism you could level at Baby is the length of time they have
taken to do it but there are probably multiple reasons for that.
Examine Baby's record at BHX, how many flights have they pulled?
Basically one in two years (Newquay) and that for a LoCo is not bad.
Whatever the shortcomings there are in the BMI group the one aspect
at the moment which does stand up to scrutiny is the Baby BHX strategy. As I have said on several occasions they are slaughtering
the opposition pax wise, I just hope they are making some money.
OP
The only criticism you could level at Baby is the length of time they have
taken to do it but there are probably multiple reasons for that.
Examine Baby's record at BHX, how many flights have they pulled?
Basically one in two years (Newquay) and that for a LoCo is not bad.
Whatever the shortcomings there are in the BMI group the one aspect
at the moment which does stand up to scrutiny is the Baby BHX strategy. As I have said on several occasions they are slaughtering
the opposition pax wise, I just hope they are making some money.
OP