BMI
Join Date: Feb 2001
Location: Denmark
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The Bmi profit is thanks to a deal signed by SAS and Lufthansa in 2000 that has propped BD up for seven years by providing hundreds of millions to BD over that time. Without this BD would be highly loss making.
The Bmi profit is also thanks to asset sales.
In Bmi's case A profit isnt a profit isnt a profit.
The Bmi profit is also thanks to asset sales.
In Bmi's case A profit isnt a profit isnt a profit.
Join Date: Feb 2001
Location: Denmark
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Copenhagen: Got any proof / links to substantiate this out of interest?
http://www.guardian.co.uk/business/2...irlineindustry
Bmi is also under pressure from the expiry last year of the European Cooperation Agreement, which pools the profits and losses from bmi's short-haul business with SAS and Lufthansa's UK flights. According to ABN, bmi's underlying business will be loss-making without the contribution of the ECA.
http://www.atwonline.com/channels/ai...articleID=2286
As SAS gets further into 2008, one thing it won't miss is the expiration at the end of 2007 of the eight-year European Cooperation Arrangement among itself, Lufthansa and bmi under which LH and SAS agreed to subsidize bmi for its financial losses. Last year the agreement cost SEK652 million, up from SEK415 million in 2006. "If you ask me for the business rationale behind this kind of arrangement I must be honest, I cannot see it,"
652 Million Swedish Kroner = £55m Sterling.
For further information on the Deal -see
http://books.google.de/books?id=lY1x...PF-2E3U4IJNDuY
Enough Proof?
Join Date: Mar 2008
Location: Newcastle NI
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CPH
The deal was designed to stop British Midland (as it was then) expanding into both SAS & Luftansa home markets, at that time BM was seen as having a lower cost base and able to both undercut both carriers and provide a far better service in diamond class.
They got into bed with BM to protect their home markets, however since Easyjet and to a lesser extent Ryanair it doesn't make much sense.
The really interesting thing in bmi 2007 accounts is the rolling in of £770m in slot valuation in respect of the slots that it holds at LHR, this move could depending on the terms of the various put/call change the figures for both SAS & LF
bmi have of course been aware of end of the ECA for years and project blue sky was implemented to address the end of this.
The ABN came up with some very fancy ideas as to what would happen in 2008/2009 including LH buying the SIA 49% stake in Virgin and merging it with bmi, the only problem is that whilst 49% will get you seats at the board table the other 51% still call the shots and in bmi that means SMB who is sole owner of the other 51%.
Expect the unexpected where bmi are concerned
They got into bed with BM to protect their home markets, however since Easyjet and to a lesser extent Ryanair it doesn't make much sense.
The really interesting thing in bmi 2007 accounts is the rolling in of £770m in slot valuation in respect of the slots that it holds at LHR, this move could depending on the terms of the various put/call change the figures for both SAS & LF
bmi have of course been aware of end of the ECA for years and project blue sky was implemented to address the end of this.
The ABN came up with some very fancy ideas as to what would happen in 2008/2009 including LH buying the SIA 49% stake in Virgin and merging it with bmi, the only problem is that whilst 49% will get you seats at the board table the other 51% still call the shots and in bmi that means SMB who is sole owner of the other 51%.
Expect the unexpected where bmi are concerned
Join Date: Aug 2006
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An interesting time for all at bmi. Turner could be playing the game that the show must go on regardless what SMB and LH are up to.
The fall in profits does not come as a surprise with the way the industry has been performing and the former BMED routes joining bmi mainline. More bums on seats on these routes would be great but, some of the destinations don’t shout holiday or even business. Pax up by 1% and 17 new routes hmmm that has me thinking all these new routes and only a 1% in pax figures. Where are they falling down?
The financial results maybe be seen on the flybmi website in the press-center.
As for the feature ownership of bmi, SMB will most likely sell out to LH. What LH decides to do with it from there is any ones guess. Keep it like Swiss with the same brand name and everything or sell it on to someone else. The likely hood of nothing happening is very slim. VS seem to be having some money worries with all in flight beauty cut and other people saying that may be able to afford bmi in its current state. As for BA I think WW can look on and wish, yes BA has the money to buy bmi but will competition rights allow such a dominant airline over LHR slots. If BA took over bmi it’s the end of the bmi brand.
Overall bmi are the wild cards at the mo.
The fall in profits does not come as a surprise with the way the industry has been performing and the former BMED routes joining bmi mainline. More bums on seats on these routes would be great but, some of the destinations don’t shout holiday or even business. Pax up by 1% and 17 new routes hmmm that has me thinking all these new routes and only a 1% in pax figures. Where are they falling down?
The financial results maybe be seen on the flybmi website in the press-center.
As for the feature ownership of bmi, SMB will most likely sell out to LH. What LH decides to do with it from there is any ones guess. Keep it like Swiss with the same brand name and everything or sell it on to someone else. The likely hood of nothing happening is very slim. VS seem to be having some money worries with all in flight beauty cut and other people saying that may be able to afford bmi in its current state. As for BA I think WW can look on and wish, yes BA has the money to buy bmi but will competition rights allow such a dominant airline over LHR slots. If BA took over bmi it’s the end of the bmi brand.
Overall bmi are the wild cards at the mo.
Join Date: Feb 2006
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Mr Flaps,
Why is it that if BA bought bmi, the competition commission wouldn't allow it yet BA would only have 52% of slots. I don't know the figures, but at FRA LH have way over 50% of slots, and that's allowed.
Why is it that if BA bought bmi, the competition commission wouldn't allow it yet BA would only have 52% of slots. I don't know the figures, but at FRA LH have way over 50% of slots, and that's allowed.
Join Date: May 2000
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I wouldn't be very surprised if BA put in a bid for BMI. I know the competition people, and SRB would moan about BA having 52% of the slots but then as has been pointed out other airlines at other airports have a similar percentage of slots.
Even if BA could buy BMI and have to relinquish half of the slots from BMI I am sure they would do it.
Even if BA could buy BMI and have to relinquish half of the slots from BMI I am sure they would do it.
Join Date: Apr 2004
Location: Ireland
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BMI baby and Cork
BMI Baby's flts from MAN and BHX to ORK both diverted to SNN tonight. Does anyone know why WW has never carried out a CAT 2 approach there since it began opertions to ORK in 2002. They are the only scheduled airline operating to Cork that has never availed of this facility.
Join Date: Oct 2005
Location: Leeds, UK & Cork, Ireland
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Maybe they are lacking in get-home-itis? Only assumption that can be made is that the crew/aircraft combination is not certified, or company rules prohibit CATII at ORK - I cant think why though!
Honestly, the slightest hit of cloud and WW get skittish. Its ridiculous. At least twice on flights I've been on we have been told there is a good chance of ending up in SNN. Weather conditions at the time have been quite good, even RE getting in.
I'll put it like this, if I needed to be somewhere important at a certain time, I don't think I'd book WW. Too unreliable. Shame really, because almost all of the crews are really quite nice.
Honestly, the slightest hit of cloud and WW get skittish. Its ridiculous. At least twice on flights I've been on we have been told there is a good chance of ending up in SNN. Weather conditions at the time have been quite good, even RE getting in.
I'll put it like this, if I needed to be somewhere important at a certain time, I don't think I'd book WW. Too unreliable. Shame really, because almost all of the crews are really quite nice.
Join Date: Nov 2006
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The Bmi profit is thanks to a deal signed by SAS and Lufthansa in 2000 that has propped BD up for seven years by providing hundreds of millions to BD over that time. Without this BD would be highly loss making.
It's all down to the Star Alliance - or nicknamed 'STAALIENS are coming'
It's all down to the Star Alliance - or nicknamed 'STAALIENS are coming'
Join Date: Jan 2003
Location: England
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bmibaby & Cork
Ryan, I think you will find Cork Cat II RW17 is a problem for baby for a number of reasons. Operationally, baby treat a Cat II the same as a Cat III and autoland but to Cat II minima. They have found the 73 Classic doesn't like the combination of the undulating terrain in the undershoot of 17 and then the initial slope of the runway resulting in the aircraft landing half way down the runway.
They trialled disconnecting the autopilot at DH but as it's already trimmed significantly nose up [dual channel] the results in the sim weren't pretty.
From recollection there is an additional limitation [AFM] on UK registered Classics that prevents descent below 200ft AAL without visual reference combined with an unltimate min disconnect height of 140ft so a single channel approach wasn't going to work either [below 200ft] IFR.
All in all the airline chose not to pursue different SOPs for one runway in it's route network [as the alternative was considered unsafe] and has to accept the commercial disadvantage to other operators with different types or working to diifferent regulations in this one case.
As for the majority of its destinations it's quite happily a Cat III operator [50ft/200m] in BHX/EMA/MAN/GLA/EDI/BFS[25]/CDG/AMS etc etc.
Hope that explains?
They trialled disconnecting the autopilot at DH but as it's already trimmed significantly nose up [dual channel] the results in the sim weren't pretty.
From recollection there is an additional limitation [AFM] on UK registered Classics that prevents descent below 200ft AAL without visual reference combined with an unltimate min disconnect height of 140ft so a single channel approach wasn't going to work either [below 200ft] IFR.
All in all the airline chose not to pursue different SOPs for one runway in it's route network [as the alternative was considered unsafe] and has to accept the commercial disadvantage to other operators with different types or working to diifferent regulations in this one case.
As for the majority of its destinations it's quite happily a Cat III operator [50ft/200m] in BHX/EMA/MAN/GLA/EDI/BFS[25]/CDG/AMS etc etc.
Hope that explains?
Join Date: Jul 2006
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They have found the 73 Classic doesn't like the combination of the undulating terrain in the undershoot of 17 and then the initial slope of the runway resulting in the aircraft landing half way down the runway
Join Date: Jan 2008
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Saudi Arabia
On June 27th bmi published a press release stating:
Under an agreement reached by the two governments (Saudi/UK), the number of weekly frequencies permitted between the two countries has been increased to 35. bmi intends to take full advantage of the opportunity this provides and will seek to add to its existing services from Heathrow to Riyadh, Jeddah and Dammam.
bmi has only 3 A330, 2 in MAN and 1 in LHR dedicated to Saudi routes. Are they planning to move an aircraft from MAN to LHR? Or maybe use one of the B757? Any idea anyone?
Under an agreement reached by the two governments (Saudi/UK), the number of weekly frequencies permitted between the two countries has been increased to 35. bmi intends to take full advantage of the opportunity this provides and will seek to add to its existing services from Heathrow to Riyadh, Jeddah and Dammam.
bmi has only 3 A330, 2 in MAN and 1 in LHR dedicated to Saudi routes. Are they planning to move an aircraft from MAN to LHR? Or maybe use one of the B757? Any idea anyone?
Join Date: Dec 2004
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The airline route news blog shows 4xFreetown and 3xAlmaty/Bishkek for the B757 this winter - i.e. just one aircraft. Not sure were that leaves Uralsk. Could it be done on an Airbus?
Join Date: Feb 2001
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The Scandinavian Airlines quarterly earnings report outlines significant profitability issues at Bmi.
143m SEK = €15m loss
http://feed.ne.cision.com/wpyfs/00/0...9B/wkr0003.pdf
The share of income in affiliated companies amounted to
MSEK -143 (49). This decline is primarily attributable to the
negative earnings in British Midland. Air Greenland and
Estonian Air also reported weaker earnings compared with the
year-earlier period.
MSEK -143 (49). This decline is primarily attributable to the
negative earnings in British Midland. Air Greenland and
Estonian Air also reported weaker earnings compared with the
year-earlier period.
http://feed.ne.cision.com/wpyfs/00/0...9B/wkr0003.pdf