The Lufthansa / BMI Thing (merged)
Join Date: May 2005
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"Yeah, unprofitable and shrinking with management who have a poor relationship with their staff!"
Mmmmmm now isn't that the current trend in ALL airlines?
At least airline management is constistant globaly!
Mmmmmm now isn't that the current trend in ALL airlines?
At least airline management is constistant globaly!
Mach 3
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But if LH win and the deal collapses, they're still presumably stuck with their 30% share and a super pi**ed off majority share-holder...
BD's creative accounting practises look like they've finally been rumbled...
BD's creative accounting practises look like they've finally been rumbled...
Its all down to price negotiation.
Court will be unlikely to decide on the issue as both sides will be forced to declare lots of dirty laundy in public.
Expect a "Compromise" to be reached after about a week.
Court will be unlikely to decide on the issue as both sides will be forced to declare lots of dirty laundy in public.
Expect a "Compromise" to be reached after about a week.
Join Date: Aug 2002
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bmi/lufthansa - deal done
So its official. LH shall as of 01 july own 11% of the LHR slots.........
Surely that's gonna smart for BA and cripple Virgin??
Rumour is once traffic rights are sorted, investment starts to connect the Mid haul (mid/east) flights to US.....
Lufthy got a great deal for what (with investment/reorganisation) will be the lowest cost highest asset (slots) operation in the U.K.
Willie and Branson need to pull their fingers......... out fast!!
Surely that's gonna smart for BA and cripple Virgin??
Rumour is once traffic rights are sorted, investment starts to connect the Mid haul (mid/east) flights to US.....
Lufthy got a great deal for what (with investment/reorganisation) will be the lowest cost highest asset (slots) operation in the U.K.
Willie and Branson need to pull their fingers......... out fast!!
Join Date: Apr 1999
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I suspect thats a rather arse about face interpretation of it. Lufthansa were doing their level best to get out of the deal, paying way over the odds for bmi and a collection of slots that don't actually work that well for long haul flying. What makes you think Lufthansa can build a hub a profitable long haul hub at LHR when BA and Virgin are struggling to do it at the moment and bmi never did.
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Join Date: Aug 2002
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Carnage,
The small print shows that lufthy didn't have to buy bmi at all in the end, so they must have paid a price they think its worth.
Sir Michael wasn't prepared to invest in the long term, as he won't be around. Instead bmi have been simply polishing the gold until now. sadly the dire situation the industry is currently in, has allowed Lufthy to successfuly negotiate him down.
It is fact that bmi operate cheaper than virgin and much cheaper than BA.
It has 6 times as many slots as VS and 1/4 of those of BA.
It has very few bilaterals holding it back.
With the correct hardware and Lufthy synergies, systems and investment their slots can cherry pick the routes, and undercut all incumbent operators. The fact that for the past 10 years Lufthansa have pubicly stated its ambition to own bmi (only after Sir Michael's call did they change) must mean it's always been part of theirs (and stars) long term strategy.
This example aside, we are entering uncharted territory for the aviation industry world-wise. Only those airlines with deep pockets, realistic cost bases and strong partners can survive.
The small print shows that lufthy didn't have to buy bmi at all in the end, so they must have paid a price they think its worth.
Sir Michael wasn't prepared to invest in the long term, as he won't be around. Instead bmi have been simply polishing the gold until now. sadly the dire situation the industry is currently in, has allowed Lufthy to successfuly negotiate him down.
It is fact that bmi operate cheaper than virgin and much cheaper than BA.
It has 6 times as many slots as VS and 1/4 of those of BA.
It has very few bilaterals holding it back.
With the correct hardware and Lufthy synergies, systems and investment their slots can cherry pick the routes, and undercut all incumbent operators. The fact that for the past 10 years Lufthansa have pubicly stated its ambition to own bmi (only after Sir Michael's call did they change) must mean it's always been part of theirs (and stars) long term strategy.
This example aside, we are entering uncharted territory for the aviation industry world-wise. Only those airlines with deep pockets, realistic cost bases and strong partners can survive.
Plumbum Pendular
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So what is the plan for BMI?
Will it stay as it is and run as it is now?
Will it be swallowed up by Lufti, and become part of the German airline? If so what happens to the staff? (Like what happened to AirUK)
What will happen to the longhaul operation?
Is Baby part of the deal, and what will happen to them?
Will it stay as it is and run as it is now?
Will it be swallowed up by Lufti, and become part of the German airline? If so what happens to the staff? (Like what happened to AirUK)
What will happen to the longhaul operation?
Is Baby part of the deal, and what will happen to them?
Join Date: Oct 2006
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Mainline, Regional and Baby are all part of the deal.
At present, only the LH board knows what the plans are ...
Baby has a board meeting on Wednesday ... something may come from that
At present, only the LH board knows what the plans are ...
Baby has a board meeting on Wednesday ... something may come from that
Join Date: Mar 2000
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My guess is that regional will stay part of the picture; quite aside from the fact that they have been generally profitable for the last few years, they allow some of the routes we have to keep doing (LHR-ABZ for instance) to be self-supporting, rather than a net loss if an A319 is used.
I am less sanguine about the future of baby. There is a chance they may be kept (Lufthansa also owns the name "BritishWings") but I would doubt if they would keep the name- they also need some newer aircraft.
It is worth noticing that there is no Star Alliance presence on one of the busiest longhaul routes in the world; LHR-New York. Admittedly, the competition on that route is intense right now- to the point that no one is making money on it, but Lufthansa has always been good at the long game.
All the above is entirely hypothetical- for all the actual hard information we have, LH may plan to use those slots to send bizjets to LHR carrying the board's wives to shop in Harrods (remember, you heard that here first).
It is shaping up to be an interesting summer...
I am less sanguine about the future of baby. There is a chance they may be kept (Lufthansa also owns the name "BritishWings") but I would doubt if they would keep the name- they also need some newer aircraft.
It is worth noticing that there is no Star Alliance presence on one of the busiest longhaul routes in the world; LHR-New York. Admittedly, the competition on that route is intense right now- to the point that no one is making money on it, but Lufthansa has always been good at the long game.
All the above is entirely hypothetical- for all the actual hard information we have, LH may plan to use those slots to send bizjets to LHR carrying the board's wives to shop in Harrods (remember, you heard that here first).
It is shaping up to be an interesting summer...
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Britishwings
Don't know about that. I am aware that the name was registered ages ago.
Tell you what, though. If Lufty doesn't want baby you can form a queue behind me...
We'll have to drop the bmi bit, obviously.
We could call it smile baby!
That would be the semantic opposite
Tell you what, though. If Lufty doesn't want baby you can form a queue behind me...
We'll have to drop the bmi bit, obviously.
We could call it smile baby!
That would be the semantic opposite
Join Date: Jan 2007
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with bmibaby already releasing part one of their summer program for 2010 I could doubt they will change that now, get things sorted with regional first. I dont surpose that flybe want anymore E145's though.
name change which has just occured to me, could become Lufthansa Midlands
?
name change which has just occured to me, could become Lufthansa Midlands
?