BMI
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G-AWKZ wrote :
Don't rely on UK regulators for this protection. The UK is very good at implementing EU rules far more to the letter than their European "partners". Take the rail industry: go to Germany or France, and most new trains are being built in Germany and France respectively. Look at the UK, and the trains are built in Germany, Japan, Belgium, Italy and maybe assembled in the UK (by foreign owned companies) because they must tender in a fully open manner.
That said, it is difficult to see another suitor. It may be that they get into another Brymon / Citiexpress scenario, where non core (ie not LHR - world) services are eventually sold off to a third party. How many BA flights serve the sexcond city in the UK nowadays?
At least this means their attention is off Aer Lingus - a tie up with Etihad would be far better for them I feel.
MD
Racedo klm bought Martinair and transavia which represented virtually all the serious players in the Dutch Market.
Lufthansa bought eurowings, Germanwings, Cityline was formed after the buyout of DLT and then the various shareholdings of other European airlines.
The combination of AF and KLM barely raised an eyebrow at the EU.
Lufthansa bought eurowings, Germanwings, Cityline was formed after the buyout of DLT and then the various shareholdings of other European airlines.
The combination of AF and KLM barely raised an eyebrow at the EU.
That said, it is difficult to see another suitor. It may be that they get into another Brymon / Citiexpress scenario, where non core (ie not LHR - world) services are eventually sold off to a third party. How many BA flights serve the sexcond city in the UK nowadays?
At least this means their attention is off Aer Lingus - a tie up with Etihad would be far better for them I feel.
MD
If IAG were to purchase BMI presumably they would have to divest a certain number of slots. The question is how many and to who?
I've often thought that an monopoly airline on a domestic route could be forced to provide seats for connections to competitors services at a fixed price. This would allow the number of operations on domestic routes such as LHR - ABZ to be reduced, allow more long haul & retain competition. I'm not aware of it happening anywhere, though.
I've often thought that an monopoly airline on a domestic route could be forced to provide seats for connections to competitors services at a fixed price. This would allow the number of operations on domestic routes such as LHR - ABZ to be reduced, allow more long haul & retain competition. I'm not aware of it happening anywhere, though.
Join Date: Mar 2008
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What does it mean for baby
Well given that DLH have said publicly that they want shut of all or part of the bmi group and any lease extension must increase their liability (DLH) if they were to close baby, then I guess it's not rocket science to deduce that they have sold or are confiedent of selling baby as a going concern, otherwise why drag out the lease renewals?
Who to is perhaps more interesting!
Who to is perhaps more interesting!
Join Date: Oct 2009
Location: STN BHX EMA
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I can understand what you mean re: LS to a point, however there are a number of reasons why I can't see it happening. Firstly, regardless of who was to buy WW, what are they getting? They don't own infrastructure, they don't own aircraft, yes they have a brand, but whoever buys it already have their own brand anyway. Read an interesting arcticle during the week that suggested once BA purchase mainline, that LH will have to give Baby away, personally I think this is much more likely as there is nothing tangible to sell.
Also, Jet2.com are a much larger airline than WW as a result of a great deal of growth in recent years, so I don't think they will want an "all at once" injection of Baby's fleet into theirs. Finally, even though Jet2.com are leasing for various reasons at the moment, their policy has always been to own their Aircraft, the majority of which they do (I think the fleet currently stands at 40ish), so I don't think taking on a dozen or so leases on B733's will be a particularly palatable proposition for those in LBA (especially when there seems to be an ongoing project for more B738's).
Interesting times.
Also, Jet2.com are a much larger airline than WW as a result of a great deal of growth in recent years, so I don't think they will want an "all at once" injection of Baby's fleet into theirs. Finally, even though Jet2.com are leasing for various reasons at the moment, their policy has always been to own their Aircraft, the majority of which they do (I think the fleet currently stands at 40ish), so I don't think taking on a dozen or so leases on B733's will be a particularly palatable proposition for those in LBA (especially when there seems to be an ongoing project for more B738's).
Interesting times.
Join Date: Apr 2004
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Without the bmi bit in bmiBaby how does the brand work?
Surely it will need a significant effort and investment to rework the brand, and then what? There is still a fleet of clapped out thirsty 737's, investment will be needed to move the head office out of Hastings House, engineering support and host of other services that are shared by the bmi group. Divorces are never cheap.
Talk is of an announcement next week, maybe we will know more then.
Surely it will need a significant effort and investment to rework the brand, and then what? There is still a fleet of clapped out thirsty 737's, investment will be needed to move the head office out of Hastings House, engineering support and host of other services that are shared by the bmi group. Divorces are never cheap.
Talk is of an announcement next week, maybe we will know more then.
Join Date: May 2006
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oh no!!! I hope its not bad news!
Hopefully LH have ditched the sale espeically if BA has offered a crazy amount.. Last time I believe it was £60m. I pray that LH will decided to properly invest in the company with larger a/c doing longhaul from LHR to places in Africa, India, China, South America.
BD can make money from LHR providing we have the right a/c on the right routes. Cash in those 319s for 330/340s. As you can see from FNA, ALA/ATQ which are currently performing well.
Hopefully LH have ditched the sale espeically if BA has offered a crazy amount.. Last time I believe it was £60m. I pray that LH will decided to properly invest in the company with larger a/c doing longhaul from LHR to places in Africa, India, China, South America.
BD can make money from LHR providing we have the right a/c on the right routes. Cash in those 319s for 330/340s. As you can see from FNA, ALA/ATQ which are currently performing well.
Join Date: Nov 2006
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Jet2
alot of speculation re Jet2 and baby; I would agree strongly that Jet2 wouldnt be getting much in the way of tangible assets etc, but the strong position that Jet2 have at EMA could be attractive plus the position at BHX. The brand awareness in the Midlands is a strong one and if Jet2 could in some way bring the Jet2 brand into awareness as being the new bmibaby then there would be some benefits. Outside of this I cant see much else for Jet2. Though if WW is losing money and is considered a liability Jet2 may be able to take the outfit on with little or new outlay.
xwindflirt, does this mean distinctly that all domestics would be axed? This has huge implications for BHD, what happens next in the overall bmi organisation is pivotal in terms of the future of BHD airport.
EI-BUD
Did you go to the meeting? Plan b is more downsizing. Lhr only operation going mid haul...
EI-BUD
Join Date: Sep 2004
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Funny enough exceptions were mentioned/implied
Belfast being one of them, with a big caveat this is plan b as far as Lufthansa is concerned. Personally I think giving up on Belfast or edi would be a massive mistake for who ever ends up owning us.
Belfast being one of them, with a big caveat this is plan b as far as Lufthansa is concerned. Personally I think giving up on Belfast or edi would be a massive mistake for who ever ends up owning us.
Join Date: Mar 2008
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G AWZK
You make some valid points, but assuming that in some capacity that baby continue under their own brand under a new owner then the fact that it is a web based airline makes life much easier, I a'm sure that any sale would allow continued use of the brand name for a period of at least 12 months, after all that is all that is of value in assets terms!
A quick name change to say Flybaby or go baby or any variation on the theme is a no brainer, as to office functions that baby does not have in house it probably buys from it's parent and probably pays more for them then it would have to by subbing out or buying in, what we talking about ? Legal, treasurery HR engineering, well I guess some people with these skill at Dony Hall might take the view that a move to baby might at least keep them in the midlands
From what I have heard on the vine then any annoucemnt this week will be about Regional new owner
Plan B is the only show in town for British Midland, if they could put a 321 or 330 on every slot and get good load factors they'd be profitable in a way that filling 319s would never achieve
A quick name change to say Flybaby or go baby or any variation on the theme is a no brainer, as to office functions that baby does not have in house it probably buys from it's parent and probably pays more for them then it would have to by subbing out or buying in, what we talking about ? Legal, treasurery HR engineering, well I guess some people with these skill at Dony Hall might take the view that a move to baby might at least keep them in the midlands
From what I have heard on the vine then any annoucemnt this week will be about Regional new owner
Plan B is the only show in town for British Midland, if they could put a 321 or 330 on every slot and get good load factors they'd be profitable in a way that filling 319s would never achieve
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these announcements must be making BHD management very nervous, if for example BA buy BMI and keep belfast they will most probably move to BFS where they can work together with EI, and if Jet2 buy baby then they will no doubt move operations to BFS also where they already have 3 or 4 aircraft based, all in all these announcements will mean big things in belfast
