BMI
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It will be interesting to see what their pecking order would be
you also have to look at the cost they need to pay to purchase these and then spend on these
Brussels = 65Milln now and with purchasing the other 55% its been reported the cost could reach 250 Milln
SAS = This is reported to be worth in the region of £750Miln at market value
BMI = This is reported to be worth some £800Miln (largely due to the cost of LHR slots - but i know they already own 30% and SAS 20%)
Alitalia = So valuations on this have ranged wildly between several hundred million up to Euro 1Bn. But they may only be allowed to bid for up to 20% and that will be of a combined Alitalia/airOne consortium airline (not sure how much Air one is worth) but say its around Euro150-200 miln
Austria = Govts stake up for sale is around 150miln euros
On top of the purchase price of these it would take considerable cost to turn around SAS (fleet renewal and Spanair fleet renewal and loss of confidence in airline), Alitalia - ok so only part of a consortium but fleet renewal desparately needed, and Austria operates a mix of old and new and could loose up to 90 miln euros in the next year.
So its a question of how deep Lufthys pockets are to keep buying up airlines.
Also in the not too distant future you have Olympic coming up for sale (ok prob not a lufthy target) and i believe the Czech govt want to privatise CSA also - which could be a good win for someone.
you also have to look at the cost they need to pay to purchase these and then spend on these
Brussels = 65Milln now and with purchasing the other 55% its been reported the cost could reach 250 Milln
SAS = This is reported to be worth in the region of £750Miln at market value
BMI = This is reported to be worth some £800Miln (largely due to the cost of LHR slots - but i know they already own 30% and SAS 20%)
Alitalia = So valuations on this have ranged wildly between several hundred million up to Euro 1Bn. But they may only be allowed to bid for up to 20% and that will be of a combined Alitalia/airOne consortium airline (not sure how much Air one is worth) but say its around Euro150-200 miln
Austria = Govts stake up for sale is around 150miln euros
On top of the purchase price of these it would take considerable cost to turn around SAS (fleet renewal and Spanair fleet renewal and loss of confidence in airline), Alitalia - ok so only part of a consortium but fleet renewal desparately needed, and Austria operates a mix of old and new and could loose up to 90 miln euros in the next year.
So its a question of how deep Lufthys pockets are to keep buying up airlines.
Also in the not too distant future you have Olympic coming up for sale (ok prob not a lufthy target) and i believe the Czech govt want to privatise CSA also - which could be a good win for someone.
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Taken from flybmi.com
London Heathrow’s second biggest carrier bmi, will double the number of flights to the Saudi Arabian capital Riyadh from 15 January 2009.
Services from Heathrow to Riyadh will increase from three services a week to six, provided a daily service with the exception of Friday. Return services from Riyadh to Heathrow will operate daily with the exception of Saturday. The Heathrow originating services will go onwards from Riyadh to Dammam on Monday, Wednesday and Saturday and onwards to Jeddah on Tuesday, Thursday and Sunday. The latter replacing the current three day a week non-stop service.
The increase in frequencies is possible thanks to an agreement reached by the UK and Saudi Arabian governments which permits extra services between the two countries.
Nigel Turner, chief executive officer of bmi, said: “We are determined to take full advantage of the headroom that the revised air services agreement has created so as to meet the growing demand we are experiencing. The doubling of frequencies to Riyadh will enable us to offer an extremely attractive schedule that will appeal to point to point traffic as well as creating a much wider range of connecting opportunities at Heathrow, particularly to and from the USA.
“Since services to the Kingdom were abandoned by British Airways two years ago and bmi willingly stepped in to safeguard this important direct link we have gained a firm foothold in the market. We have invested and continue to invest considerably in providing the best possible service both on the ground and in the air. The significant increase in services from January will further establish bmi as a major contributor to the economic growth and vibrancy of the region. We are proud to be a part of that growth.”
Scheduled times are to be announced shortly and flights will be operated by Airbus A330 aircraft in a two class configuration providing lie-flat beds to business customers.
ends.
Typical bmi spin I'm afraid, make it sound like something fantastic but actually do nothing other than reshuffle the same old deck of cards. Still, on the bright side those Riyadh flights make a mint so it's got to be good for the bank balance.
Join Date: Oct 2007
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Adjusting to demand? Tell that to the JED pax, who now have to route via RUH. When BA come back next year with their JED service we'll lose all those pax, and given that JED can be full how are they gonna manage to sell seats ex-RUH to LHR if the a/c is full ex JED?
Classic bmi, build up a good loyal customer base, then p!ss 'em off.
Classic bmi, build up a good loyal customer base, then p!ss 'em off.
Join Date: Feb 2001
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Thats a rather bold statement (true or otherwise) from a first post, i think you owe it to other Pprunners to substantiate your post in view of your probationary status.
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You joined pprune just to break this news? One assumes Part II of the announcement will be the redeployment of the two aircraft into Terrible One at LHR and onwards to Saudi and ?
Wasn’t that always part of the plan – moving the A330’s to LHR once ‘Open Skies’ had been sorted? Maybe they consider the LHR – Middle East links more profitable than the MAN – Stateside/Caribbean links. Or maybe even anticipating the recession and reduced pax loads to/from the USA as the recession starts to bite. “Absolute rubbish” is too dismissive a statement as, with only three A/C to play with, the move does have merit.
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actually i joined to see if anyone else had any info. I'm assuming that part of the announcement will be the aircraft going to LHR. Some i have spoken to believe it is part of a clean-up exercise in readiness for the long expected sell off - more likely to lufty.
I guess you get a number of cranks with unsubstantiated rumours on this forum so i wont post anymore until after the announcement on Friday but will monitor to see if anyone else has any more info.
I guess you get a number of cranks with unsubstantiated rumours on this forum so i wont post anymore until after the announcement on Friday but will monitor to see if anyone else has any more info.
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Thank you
I would not be surprised, in fact i thought it would have happened by now. The Chicago has always done well, but the Caribbean & Vegas whilst busy have never done well up front(staff apart!!)
Tim Bye confirms on ATW online that Mid Haul is doing well and says "the two things they got right this year was not going to the US (from LHR) and not ordering the 5 A330 for which they had board approval" so i guess if Friday is the day it will be more mid haul
I would not be surprised, in fact i thought it would have happened by now. The Chicago has always done well, but the Caribbean & Vegas whilst busy have never done well up front(staff apart!!)
Tim Bye confirms on ATW online that Mid Haul is doing well and says "the two things they got right this year was not going to the US (from LHR) and not ordering the 5 A330 for which they had board approval" so i guess if Friday is the day it will be more mid haul
