The Lufthansa / BMI Thing (merged)
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Another reason that Flybe may be interested in Baby is that all of Baby's leases on there 737's expire in the next 12-18 month's - so therefore it would be a good oportunity to change there fleet...
Some how dont think think Flybe would be interested in BMI regional's route's - this would actually fit in better with Lufthansa's route structure, and let them into the UK regional market.
Some how dont think think Flybe would be interested in BMI regional's route's - this would actually fit in better with Lufthansa's route structure, and let them into the UK regional market.
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Im pretty sure all of the leases do not expire in 12-18 months, indeed I think some of the a/c are owned, the ones initially in operation with BD anyway. WW have recently taken delivery of more 737-300 (mainly to replace 735) and I doubt even BD were stupid enough to take aircraft on 12 month leases, unless there is going to be a major shake-up in the fleet.
LH have an option on SMB's share of bmi. SO the ball is in their court, not SMB's. What I am not too sure of is if that share includes WW and regional or not, depending on how the company is structured, and what exactly the LH option pertains to.
Brian.
LH have an option on SMB's share of bmi. SO the ball is in their court, not SMB's. What I am not too sure of is if that share includes WW and regional or not, depending on how the company is structured, and what exactly the LH option pertains to.
Brian.
The word you wanted is "their" by the way.
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Lufthansa........is said to have briefed UBS
A person following the matter suggested.......
.........is believed to have used UBS for several projects over the last two years
A person following the matter suggested.......
.........is believed to have used UBS for several projects over the last two years
I know that the 'R' in PPRuNe stands for "rumour", but there are limits.
PS - whatever you do, don't mention the prospect of job losses or reduced pay and conditions.
EI-RB
Still fighting last century's wars are you? I would have thought that a strong carrier such as LH might be very welcome as a way of shaking up BA at LHR!
Still fighting last century's wars are you? I would have thought that a strong carrier such as LH might be very welcome as a way of shaking up BA at LHR!
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BD would fit beautifully into the mergers models that major carriers would need to follow. I could even see LH investing in the MAN base as a Munich type operation, where critical mass would possibly swing it into a going concern as a structured longhaul operation under the BMI branding.
BMI (powered by Lufthansa) has a certain ring to it...
BMI (powered by Lufthansa) has a certain ring to it...
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Its not that surprising to here Lufthansa taking over BMI, they are cash rich having sold their stock in TCX for about 800 million last year and BMI's slots are worth their weight in gold when open skies kicks in!
As for baby... who knows
As for baby... who knows
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LH will control BMI group within the next 18 months. Whether that means the group as a whole or just mainline no one seems to know. However, what is for sure is, like BA, LH will only be interested in the mainline operation. Regional may have a future life as part of Team Lufthansa but Baby would be a real problem child.
Baby has to have a new fleet in the next two years. Bmi can't afford it. baby on their own can't afford it. The only future it has is as part of another merged Lo-Co. No likely purchaser of Bmi is going to fund it.
Anyone in the market for bmi must already have a plan for Baby and Regional. It may even pay LH to simply "give away" the baby business as BA did with Connect. If BA manage to win they will certainly offload both companies ASAP.
Even with the GB buy out I bet Easy are watching with interest if not already in talks with the potential bmi bidders. Even with it's problems getting Baby for next to nothing must be attractive.
Baby has to have a new fleet in the next two years. Bmi can't afford it. baby on their own can't afford it. The only future it has is as part of another merged Lo-Co. No likely purchaser of Bmi is going to fund it.
Anyone in the market for bmi must already have a plan for Baby and Regional. It may even pay LH to simply "give away" the baby business as BA did with Connect. If BA manage to win they will certainly offload both companies ASAP.
Even with the GB buy out I bet Easy are watching with interest if not already in talks with the potential bmi bidders. Even with it's problems getting Baby for next to nothing must be attractive.
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BMI commuter is a very important operator to Lufthansa in that they connect
from many places in the UK that Lufthansa don`t and feed very large numbers into Manchester for onward flights worldwide via FRA and MUC
so I would very surprised if they just dumped them
Ian
from many places in the UK that Lufthansa don`t and feed very large numbers into Manchester for onward flights worldwide via FRA and MUC
so I would very surprised if they just dumped them
Ian
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Lufthansa briefs UBS on BMI takeover
http://www.ft.com/cms/s/2/cdda4156-a...b5df10621.html
"Lufthansa is in talks to acquire a majority stake in UK airline British Midland (BMI) and is said to have briefed UBS to advise on negotiations, mergermarket understands. A person following the matter suggested the German carrier, which has 30% minus one share of BMI and is believed to have used UBS for several projects over the last two years, had briefed the Swiss bank to work on the complete acquisition of BMI"...
If this really does happen, what would happen to BMI...would BMI become Lufthansa, or would they throw us away and use our slots or something completely different?
any thoughts?
"Lufthansa is in talks to acquire a majority stake in UK airline British Midland (BMI) and is said to have briefed UBS to advise on negotiations, mergermarket understands. A person following the matter suggested the German carrier, which has 30% minus one share of BMI and is believed to have used UBS for several projects over the last two years, had briefed the Swiss bank to work on the complete acquisition of BMI"...
If this really does happen, what would happen to BMI...would BMI become Lufthansa, or would they throw us away and use our slots or something completely different?
any thoughts?
DJ News Highlights: Top Equities Stories Of The Day11/12/2007 07:00AM AEST
UBS WINS TWO NEW BIG INVESTORS, WRITES DOWN $10B
UBS is selling a 9% stake to a Singapore government fund as part of a move to strengthen capital after it announced a further $10 billion in write-downs on subprime holdings. The bank also says it now expects to post a net loss in 4Q, after having said earlier that it expects a profit overall. Chairman says the bank has sufficient capital even if the subprime market deteriorates further. Trades up 2.9%
UBS WINS TWO NEW BIG INVESTORS, WRITES DOWN $10B
UBS is selling a 9% stake to a Singapore government fund as part of a move to strengthen capital after it announced a further $10 billion in write-downs on subprime holdings. The bank also says it now expects to post a net loss in 4Q, after having said earlier that it expects a profit overall. Chairman says the bank has sufficient capital even if the subprime market deteriorates further. Trades up 2.9%
Paxing All Over The World
UBS as an investor and as an advisor are two different things. As any airline employee will know, one company can do two different things, doing one very well and one rather badly!
My guess is that, if LH take over, it is too early to call. On the one hand, they are a cautious company that do not move quickly into new things. On the other hand, it is a time of rapidly changing times in the airline world. Further, the forthcoming recession will change the fortunes of all carriers. Doubtless there are those who know the route networks inside out and can advise on overlaps but, I think we may be sure that the EGLL slots are the jewel in the crown.
For Sir Michael it appears to be, "Any purchaser, as long as they are not British."
My guess is that, if LH take over, it is too early to call. On the one hand, they are a cautious company that do not move quickly into new things. On the other hand, it is a time of rapidly changing times in the airline world. Further, the forthcoming recession will change the fortunes of all carriers. Doubtless there are those who know the route networks inside out and can advise on overlaps but, I think we may be sure that the EGLL slots are the jewel in the crown.
For Sir Michael it appears to be, "Any purchaser, as long as they are not British."
Read on:
bmi has already outsourced its MRO to LH Technik and a big chunk of IT services to LH Systems.
My guess is that LH will expand bmi's capacity dramatically and use the UK as an aircraft carrier. Which is what the strategic plan has been all along.
And its better to have sole influence over the direction of the company than to continue picking up 30% of the tab for some disastrous management practices.
You'll all have to learn German, of course....
A Lufthansa’s spokesperson added that it was already publicly known that BMI owner Sir Michael Bishop had two put options to sell his 50% stake in BMI to Lufthansa. The first of these must be exercised by next year, the other by 2009.
My guess is that LH will expand bmi's capacity dramatically and use the UK as an aircraft carrier. Which is what the strategic plan has been all along.
And its better to have sole influence over the direction of the company than to continue picking up 30% of the tab for some disastrous management practices.
You'll all have to learn German, of course....
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Assuming the report is correct and actually happens (big assumtion, at this time)-------
Expanded longhaul looks likely. Big investment, but big profits.
One thing is definite, provided LH recognise the problem and take action. Better management at all levels, from the top downwards. Less timidity and generation of public school "back stabbing" attitude at the top. Much greater efficiency throughout. More professional. Management ability driven promotion, as opposed to absolutely nothing but crawling ability.
From my own direct experience, as a first action, they should definitely ditch the current pilot "management" and insert their own. Sack everyone in Crewing (with one or two very notable exceptions). Get some real brains in Operations, instead of money-wasting amateur panic merchants. You listening, LH? Some useful inside info for you! Ignore at your peril!
Expanded longhaul looks likely. Big investment, but big profits.
One thing is definite, provided LH recognise the problem and take action. Better management at all levels, from the top downwards. Less timidity and generation of public school "back stabbing" attitude at the top. Much greater efficiency throughout. More professional. Management ability driven promotion, as opposed to absolutely nothing but crawling ability.
From my own direct experience, as a first action, they should definitely ditch the current pilot "management" and insert their own. Sack everyone in Crewing (with one or two very notable exceptions). Get some real brains in Operations, instead of money-wasting amateur panic merchants. You listening, LH? Some useful inside info for you! Ignore at your peril!
You listening, LH? Some useful inside info for you! Ignore at your peril!
They have senior representatives on the board and are embedded at all commercial and operational levels since 2000.
You don't know the half of it, mate...!