The Lufthansa / BMI Thing (merged)
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All I do know is that SMB is nobodys fool and I bet, if he actually reads these boards, is quietly chuckling to himself.
Join Date: Jan 2002
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I was purely being ironic !!
But it'd be nice to work with me old Jet2 mates again !
Although their 737's are older than ours !! Maybe not.
But it'd be nice to work with me old Jet2 mates again !
Although their 737's are older than ours !! Maybe not.
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Both Easy Jet and Ryanair have announced that they will be opening a base in Manchester.
Ryanair was having a party at MAN this morning announcing new routes and Easy are planning 5 aircraft in MAN. (Announced yesterday). Where does this leave bmibaby.
My guess is a re-integration with mainline.
Ryanair was having a party at MAN this morning announcing new routes and Easy are planning 5 aircraft in MAN. (Announced yesterday). Where does this leave bmibaby.
My guess is a re-integration with mainline.
Join Date: Feb 2003
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Even if Jet2 wanted to expand their business by purchasing another airline, their recent profit warning and current share price would presumably make buying another airline, even relatively small fry like baby, impossible. Shocking to think there are older 737s than ours though, and I'm quite happy not to be doing 757s to TFS thank you, we had enough of the charters when it was BM.
Mach 3
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bmibaby isn't worth much IMHO.
Brand valuation in the LOCO industry is a bit of an oxymoron. People vote with their wallet don't they? Thats the whole point!
What assets has it got that are worth anything to an existing LOCO carrier?
None except, I venture to add, the pilots and the slots.
The infrastructure is duplicated, the aircraft are leased (and easy to move on if the difficulty finding 733's is anything to go by), most personnel are dispensable - even pilots if they're not appropriately type-rated, so I'd be surprised if it was worth more than, for example, EZY paid for GB.
Thats the price of a couple of new 738 airframes...which is peanuts to airlines which are expanding their fleets by ~100 aircraft in the next 2/3 years.
The future would be better orange than blue and yellow.
Brand valuation in the LOCO industry is a bit of an oxymoron. People vote with their wallet don't they? Thats the whole point!
What assets has it got that are worth anything to an existing LOCO carrier?
None except, I venture to add, the pilots and the slots.
The infrastructure is duplicated, the aircraft are leased (and easy to move on if the difficulty finding 733's is anything to go by), most personnel are dispensable - even pilots if they're not appropriately type-rated, so I'd be surprised if it was worth more than, for example, EZY paid for GB.
Thats the price of a couple of new 738 airframes...which is peanuts to airlines which are expanding their fleets by ~100 aircraft in the next 2/3 years.
The future would be better orange than blue and yellow.
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If an airline is desperate enough to need 737 type-rated crew then perhaps baby is an attractive company to consider buying, but otherwise I think we're most valuable within the bmi group, giving them a fairly successful toe-hold in the low-cost arena. Although WW aren't what we were at EMA, falling into the shadow of Ryanair, we're everywhere at BHX and CWL, and our presence in MAN and EMA isn't really too shabby. As much as there's talk that baby will be up for the chop if Lufthansa comes in, who can say that LH might not want to invest in the LCC market? Also, given comments made this summer, bmi is interested in buying other airlines not being bought. IF, the future were blue and yellow, besides it being the real final blow to everyone who moved to baby from BD, what would we necessarily bring that they can't get from organic growth? They may want to grow at MAN and EMA, but they've left CWL and BHX has always appeared too expensive. Plus they're saddled with flights to main airports with classic 737s, though this is similar to what happened with buzz a few years prior.
Join Date: Nov 2004
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Hey 6 chimes .!!!! merry christmas, glad to see nothing has changed at bmi and nothing ever will. listen get out and come over to BA. stop giving your soul to people who couldn't give a toss about you and come over to a proper airline.
hugs twisted.
hugs twisted.
Now that we are into 2008, and the deadline for SMB to exercise his put option is only 5 months away, how do we feel this is going to pan out? Obviously the BMI slot holding in LHR is very valuable but what about the likes of Baby and Regional? If LH were to buy BMI would the break it up and profit from selling the slots to their Star Alliance partners and might SMB retain the subsidiaries as a retirement hobby?
Mach 3
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Errrr.....
SMB's "Put" option expires in June 2009.
LH have a "Call" option on 10% of bmi's shares, which together with the purchase of SAS's 20% stake would give them overall control of the company, from Dec 2008.
FWIW, ABN AMRO have a paper out on the "Future of bmi" discussing various possibilities.
None of the them include bmi Regional and bmibaby, their opinion being that both these operations represent non-core business, and would probably be sold off.
SMB's "Put" option expires in June 2009.
LH have a "Call" option on 10% of bmi's shares, which together with the purchase of SAS's 20% stake would give them overall control of the company, from Dec 2008.
FWIW, ABN AMRO have a paper out on the "Future of bmi" discussing various possibilities.
None of the them include bmi Regional and bmibaby, their opinion being that both these operations represent non-core business, and would probably be sold off.
Mach 3
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Jet slides into red on high fuel prices, expansion costs
SR71 Thats old news.
B.T.W Have you seen the latest on Jet Airways from ATW Daily NewsTuesday January 29, 2008
See more http://www.atwonline.com/news/story.html?storyID=11548
for the full story
MR 120
Jet slides into red on high fuel prices, expansion costs
Jet Airways, India's sole profitable major carrier, yesterday reported a INR911 million ($23.1 million) loss for the fiscal third quarter ended Dec. 31, reversed from a profit of INR400 million in the year-ago period, ending a streak of four consecutive positive quarters.
Jet cited "historical high fuel prices and startup losses on international business" as factors in the result. Three-month revenue rose 27.8% year-over-year to INR25.17 billion on an 8.7% increase in passengers to 2.95 million. Fuel costs jumped INR609 million from the year-ago period. "The increases in all other costs were in line with the increase in level of operation and in most instances, even lower than that of the same period last year," the company said. Traffic climbed 43% to 4.55 billion RPKs against a 43.2% rise in ASKs to 6.59 billion, lowering load factor 0.2 point to 69.1%. It added 10 aircraft during the quarter.
Revenue from domestic operations (INR15.4 billion) accounted for 63% of the whole, down from 79% in the year-ago period, which Jet said reflects "the growing scale and contribution of the company's international operations." It suffered a pre-tax loss of INR144 million on domestic flights during the quarter compared to a INR733 million pre-tax profit in the year-ago period, when it posted a INR482 million gain from the sale of an aircraft.
B.T.W Have you seen the latest on Jet Airways from ATW Daily NewsTuesday January 29, 2008
See more http://www.atwonline.com/news/story.html?storyID=11548
for the full story
MR 120
Jet slides into red on high fuel prices, expansion costs
Jet Airways, India's sole profitable major carrier, yesterday reported a INR911 million ($23.1 million) loss for the fiscal third quarter ended Dec. 31, reversed from a profit of INR400 million in the year-ago period, ending a streak of four consecutive positive quarters.
Jet cited "historical high fuel prices and startup losses on international business" as factors in the result. Three-month revenue rose 27.8% year-over-year to INR25.17 billion on an 8.7% increase in passengers to 2.95 million. Fuel costs jumped INR609 million from the year-ago period. "The increases in all other costs were in line with the increase in level of operation and in most instances, even lower than that of the same period last year," the company said. Traffic climbed 43% to 4.55 billion RPKs against a 43.2% rise in ASKs to 6.59 billion, lowering load factor 0.2 point to 69.1%. It added 10 aircraft during the quarter.
Revenue from domestic operations (INR15.4 billion) accounted for 63% of the whole, down from 79% in the year-ago period, which Jet said reflects "the growing scale and contribution of the company's international operations." It suffered a pre-tax loss of INR144 million on domestic flights during the quarter compared to a INR733 million pre-tax profit in the year-ago period, when it posted a INR482 million gain from the sale of an aircraft.
Mach 3
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SR71 Thats old news
I imagine there is some mutual respect between Goyal and Bishop.
Both extremely successful mavericks who've taken on the establishment.
A $23.1 million loss is a drop in the pan to such high net worth individuals.
Bearing in mind Goyal is a naturalised German citizen, EU ownership regulations and Open Skies....
But I'm speculating.
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Lufthansa's option on bmi
Frankfurt (Thomson Financia) - Deutsche Lufthansa AG is 'determined' to use its option to obtain a majority stake in carrier British Midland bmi, said its chief financial officer Stephan Gemkow.
'There is an option that enables us to acquire a majority stake in BMI,' Gemkow said to journalists during a conference call.
'We are determined to use that option. Beyond that there is no need to hold talks (with BMI)'
[Para on existing shareholding arrangements]
Bishop has a 'put' option to sell his stake in the company, and Lufthansa holds a 'call' option to buy out Bishop between Dec 08 and June 09.
'There is an option that enables us to acquire a majority stake in BMI,' Gemkow said to journalists during a conference call.
'We are determined to use that option. Beyond that there is no need to hold talks (with BMI)'
[Para on existing shareholding arrangements]
Bishop has a 'put' option to sell his stake in the company, and Lufthansa holds a 'call' option to buy out Bishop between Dec 08 and June 09.
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bmi approached by several airline wanting bmi to buy them
By Danny Fortson, Business Correspondent
Friday, 25 April 2008
Several airlines struggling to cope with the record oil price have approached BMI to sound out whether the carrier would be interested in buying them.
"They have already started coming to us," said the chairman Sir Michael Bishop after a speech in which he predicted the slowing economy and the record price of fuel was leading to a clear division of airlines into the "haves and have-nots." Those able to withstand the difficult conditions – five airlines have folded in recent weeks – would be determined largely by their fuel hedging positions. BMI, he said, has hedged 75 per cent of its fuel for this year.
Start-up carriers and those with insufficient scale to withstand the hike in operating costs are likely to be the most vulnerable. The approaches BMI has received have thus far been informal, Sir Michael said, but he added he is keen to expand BMI through "bolt-on acquisitions".
Friday, 25 April 2008
Several airlines struggling to cope with the record oil price have approached BMI to sound out whether the carrier would be interested in buying them.
"They have already started coming to us," said the chairman Sir Michael Bishop after a speech in which he predicted the slowing economy and the record price of fuel was leading to a clear division of airlines into the "haves and have-nots." Those able to withstand the difficult conditions – five airlines have folded in recent weeks – would be determined largely by their fuel hedging positions. BMI, he said, has hedged 75 per cent of its fuel for this year.
Start-up carriers and those with insufficient scale to withstand the hike in operating costs are likely to be the most vulnerable. The approaches BMI has received have thus far been informal, Sir Michael said, but he added he is keen to expand BMI through "bolt-on acquisitions".
Plumbum Pendular
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I understand that the Woolly Pully has been in Dubai trying to raise money to buy that share in BMI as long as Lufty don't exercise their option.