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Old 14th Sep 2011, 11:13
  #2641 (permalink)  
 
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I agree, good post Mr Benip. There's no expansion into long haul or anything else on the cards, that would be utter folly in this economic climate. Expect more short-term cuts. The bmi ship rarely sails in less than storm force 9 or worse!
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Old 14th Sep 2011, 11:28
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With regards to making London a competitive environment for aviation, merging the operations of bmi and Virgin would be ideal.
Oh not this age-old Virgin mantra again.

LHR is one, if not THE most competitive environment in commercial aviation.
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Old 14th Sep 2011, 16:56
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Donington Hall would never be sold to a housing developer - grade II*, oval stair hall, ceilings and friezes in Adam style, ionic pilasters, Jacobean-style fireplaces. Not a chance they would carve that into flats.

On the subject of Regional, do you think that Flybe would want it? Completely different route structure, operates into a load of different airports (that could be good if Flybe look to expansion, but they may wish to focus on Nordic first) and mainly services oil industy. With Connect there was the fleet overlap in the Dash 8s and the 146s/RJs - and the 135s which were/are continuing to be (not sure which) retired. There was also the element of removing the competition which Connect had previously posed.

Jet2 would obviously be very keen on baby although this would nearly double their size? Also, could they find the money?

Lufty/BA will have an interesting time convincing unions and competition commissions that a mainline selloff to them would be a good thing. We will have to see.
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Old 14th Sep 2011, 17:27
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Extremely valid points IMHO Aeromad, other than the comment re LS.

Jet2.com fleet = 38 with at least 5 orders
BMI Baby fleet = 14

Clearly wouldn't anywhere near double Jet2.com fleet, incidently I think it would be a bad idea for LS.
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Old 14th Sep 2011, 17:51
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Sorry, I meant double in terms of number of destinations. Upon further research, this too appears to be wrong - just not quite so far off the mark
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Old 14th Sep 2011, 18:39
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WW profitable? - well it wont be after the money they will loose out of BHD next year!!
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Old 14th Sep 2011, 20:23
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Lufty/BA will have an interesting time convincing unions and competition commissions that a mainline selloff to them would be a good thing. We will have to see.
The unions won't have any say in the matter and frankly the only alternative to an acquisition by IAG/BA is a painful, messy and undignified fire sale of bmi's assets.

For frontline staff, an acquisition by IAG is the best option. They will need the extra staff to absorb the increase in the flying programme.
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Old 15th Sep 2011, 01:14
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Wise words LD, that's my take on the situation also.
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Old 15th Sep 2011, 07:25
  #2649 (permalink)  
 
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Bit of an out of the box thought.....
What about U2 taking over BMI?
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Old 15th Sep 2011, 07:31
  #2650 (permalink)  
 
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U2 vs BD - completely different product and with the way Stelios is being lately, doubt it'll happen, I really do. LHR isn't grounds for a budget airline - people only go to LHR for connections, U2 don't want to deal with that.

My personal opinion is:

Regional -> Eastern
Baby -> Jet2 (they have big money people behind them) OR U2
Mainline -> BA/IAG or AF/KLM

That's the only bunch I can see working, honestly. Eastern has been touched upon before, they already operate the Regional aircraft types. Jet2 need spare a/c it seems, most of them have catering trolleys stuck out of the side of them (joke) and U2 have handled mergers before, e.g. Go.

Mainline is tricky, I think Mainline will be the struggle and unless someone like IAG/BA or AF/KLM comes along - I don't think 1) It's going to be affordable for anyone else like Jet2 or 2) It's going to be able to be revived by anyone else.


Good luck to all affected by this drama anywho!
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Old 15th Sep 2011, 08:41
  #2651 (permalink)  
 
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Why on earth would easyJet want bmibaby? They've just spent the last few years trimming down the Boeing fleet and Stelios is dead set against further expansion. What would they want with a bunch of old 737s and a few small bases where they've previously shown no interest?
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Old 15th Sep 2011, 08:48
  #2652 (permalink)  
 
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As a prevous poster said, BA Man to JFK was at times a popular route but the logistics and yields made it unprofitable and it was shut down.

Its easy to fill aircaft with passengers- its more difficult to make money doing it.

If BA holds its nerve it can pick up the slots and expand rather than have all the hassles (and costs) of a merger.
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Old 15th Sep 2011, 15:25
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Expect the unexpected!

It needs someone with a lot cash and a good understanding of the airline industry, why buy a brand if you already own U2 or Jet2?

WW is fast becoming a neat little airline, that well liked by it's midlands passengers and needs an investor who can take it forward

Sound just right for a Knighted gent up the road with very deep pockets and on one to spend it on!
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Old 15th Sep 2011, 16:22
  #2654 (permalink)  
 
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What would an investor be getting if they bought bmiBaby? The brand is kind of pointless without bmi, the aircraft are all leased, old and need significant sums spent on them. Anyone can set up routes, so no real value there.

So from a business point of view, it really doesn't look like a good deal. I don't see what any other operator would gain by buying WW rather than let it die of natural causes.
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Old 15th Sep 2011, 17:26
  #2655 (permalink)  
 
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G AWZK

The long playing broken record of AWZK returns from his hols with another stunning contribution !!

You must be a fun glass half empty person to be around, er not, what is wrong with wanting a business to prosper and create/save jobs?

The airline & aircraft do not need major investment, the aircraft are leased, just go out and lease some more
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Old 15th Sep 2011, 17:31
  #2656 (permalink)  
 
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I know this is the bmi thread...

What would an investor be getting if they bought bmiBaby? The brand is kind of pointless without bmi, the aircraft are all leased, old and need significant sums spent on them. Anyone can set up routes, so no real value there.
Most of the passengers now refer to the airline as 'baby'. This is also how the company wants to be portrayed, to show they are seperate airlines with bmi - British Midland. The brand is actually now very well known, obviously especially in the Midlands and Yorkshire areas but now more and more in Northern Ireland. They are also now (despite the small fleet) the most ontime low cost carrier operating from the UK as well as winning customer satisfaction awards.

Moving away from the bmi group, all baby would need to do is focus even more on it's 'baby' branding and use of 'Tiny'. Perhaps all they would need to do is replace the bmibaby with 'flybaby'. They also come along with an operating certificate, experienced staff and knowledge of the markets... so in my opinion, a good investment rather than setting up something new!
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Old 15th Sep 2011, 20:34
  #2657 (permalink)  
 
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The airline & aircraft do not need major investment, the aircraft are leased, just go out and lease some more
Well that sound easy then! Should be a dawdle to find a buyer, renew the fleet and rebrand.

I am sure there won't be any issues or penalty clauses with breaking the current leases.
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Old 16th Sep 2011, 07:35
  #2658 (permalink)  
 
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Good point - raises a few questiions.

1. How much of baby losses are due to expensive maintenance being contracted to mainline.

2. Could baby contract out maintenance and support services (accounts, ticketing or whatever) provided by mainline elsewhere.

Could they turn fairly small losses year on year to a profit

MK
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Old 16th Sep 2011, 09:34
  #2659 (permalink)  
 
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EI?

What about a merger of EI and BMI(mainline & regional)? It would make the combined entity a significant player in LHR and also an interesting future target for the likes of IAG or AF/KLM.... ... just a thought.
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Old 16th Sep 2011, 11:49
  #2660 (permalink)  
 
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Ryanair would not allow EI to buy BD. They're already pressing EI to pay out a dividend.

Ryanair steps up Aer Lingus confrontation - FT.com
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