BMI
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Queenvic
I am not going to pretend to be a sage or expert on such matters, but there are potential mid-sheet costs that LH can use their muscle to excise out of BMI's balance sheet.
I'm thinking mostly of the like of leasing costs, where operations such as ILFC have been used to fund fleet renewal. Swiss seems to have been an example where the incoming LH has turned over their longhaul operations fleet to new, more suitable aircraft. From what I've heard in the bread aisle at Tesco BD's equipment costs are one reason the airline struggles financially so Lufty's finance guys can potentially make a lot of adjustments just in that field.
Otherwise I really can't see them making vast changes to a brand with a decent public profile, no matter what the nay-sayers think. BMI is a visible British brand with some useful positions at Heathrow and they won't want to take massive risks with this new asset, at least not until the operation is refinanced.
I am not going to pretend to be a sage or expert on such matters, but there are potential mid-sheet costs that LH can use their muscle to excise out of BMI's balance sheet.
I'm thinking mostly of the like of leasing costs, where operations such as ILFC have been used to fund fleet renewal. Swiss seems to have been an example where the incoming LH has turned over their longhaul operations fleet to new, more suitable aircraft. From what I've heard in the bread aisle at Tesco BD's equipment costs are one reason the airline struggles financially so Lufty's finance guys can potentially make a lot of adjustments just in that field.
Otherwise I really can't see them making vast changes to a brand with a decent public profile, no matter what the nay-sayers think. BMI is a visible British brand with some useful positions at Heathrow and they won't want to take massive risks with this new asset, at least not until the operation is refinanced.
Join Date: Oct 2005
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As some posters have said, I would expect something very similar to LX happening at BD. The fleet will be looked at - to be honest I can't see many changes, the fleet fits pretty well with the LH group fleet as it is.
I think BD will remain as an independent airline within the LH group. I think LH will want to grow BD significantly, whether that will be at LHR or out in the regional airports remains to be seen.
I see the LHR operation staying mainly as it is, perhaps a few more mid-haul destinations and a careful look at frequencies to AMS, BHD, DUB, etc. I think MAN could be the one to watch, however. LH have already stated an interest in operating more flights from MAN, whether this would be long, short or mid-haul is uncertain, potentially there could be a case for using the WW routes and staff as the basis for expansion at MAN.
Brian.
I think BD will remain as an independent airline within the LH group. I think LH will want to grow BD significantly, whether that will be at LHR or out in the regional airports remains to be seen.
I see the LHR operation staying mainly as it is, perhaps a few more mid-haul destinations and a careful look at frequencies to AMS, BHD, DUB, etc. I think MAN could be the one to watch, however. LH have already stated an interest in operating more flights from MAN, whether this would be long, short or mid-haul is uncertain, potentially there could be a case for using the WW routes and staff as the basis for expansion at MAN.
Brian.
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What about their frequent flyer program? Will that be amalgamated?
The only worry I have with that is that it currently draws in a number of customers who would otherwise use the competition.
I fear that if it's made less generous in the short term, they'll loose a chunk of their customer base.
Would I be right to state there is more competition at LHR than their was as Zurich?
The only worry I have with that is that it currently draws in a number of customers who would otherwise use the competition.
I fear that if it's made less generous in the short term, they'll loose a chunk of their customer base.
Would I be right to state there is more competition at LHR than their was as Zurich?
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Found an article on the FT website from 23rd June - says LH has yet to disclose plans for bmi's future but has in the past made it clear it has little interest in bmi baby. As for regional says it is expected to eventually sell the operation
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All the newspapers know FCUK all about Lufthansas plans for bmi, it's all speculation. Let's just see what happens. And as for sell offs why would they? Make it profitable is more of the Lufthansa way.
D and F
D and F
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Perusing bmi's site tonight (for other reasons) and spotted they have a lonely 757 in their fleet. Must be rather comfy with only 160pax in it.
How long have they had that hidden away in their fleet? Is it for a particular market/destination?
cheers
FF
How long have they had that hidden away in their fleet? Is it for a particular market/destination?
cheers
FF
Join Date: Oct 1999
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It's a damp leased Astraeus 757 which has been there for well over a year now. Generally serves Almaty and Bishkek. Originally there were two of them but BMI managed to wriggle out of one airframe under a 'contractural dispute' 
It was always a risky deal with reliability issues of older airframes. The pilot Union saw an outside airline operating previous BMed/BMI A321 routes as a direct threat to the SCOPE agreement and dug their heals in, which I don't think the managerment foresaw coming.
It was always a risky deal with reliability issues of older airframes. The pilot Union saw an outside airline operating previous BMed/BMI A321 routes as a direct threat to the SCOPE agreement and dug their heals in, which I don't think the managerment foresaw coming.
Join Date: Mar 1999
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I suspect the bmi management don't even know yet what is likely to happen!
Although they may be a little distracted at the moment trying to justify their own positions!
LH have had someone on the board for over 10 years now and have continually had an opportunity to influence the fleet and network structure. Within that time they've had the ability to veto any fleet expansion plans for routes not to their liking.
The first chance to modify the network significantly will not come until winter 2010, with the slot pairs for that in negotiation the spring before.
The only consolidation short haul could well be at the Scottish end.
MAN long haul ops were turning a profit when cargo was included in the figures (management conveniently overlooked the cargo revenue when deciding to close the base!) So we may see some revisitation there. Although I seriously doubt that it will involve any return to the Caribbean (seen to be too 'charter' and against the LH mantra to serve the 'business' end of the spectrum.
You can be rest assured that there is something in the pipeline. bmi are well positioned to meet the demanding conditions face to face and survive. It won't be easy but who ever said surviving in the airline industry was going to be 'a walk in the park'
It's always been a business with a massive turnover and tiny margins and there's still too many unforeseen fluctuations ahead.
The Dr.
Although they may be a little distracted at the moment trying to justify their own positions!
LH have had someone on the board for over 10 years now and have continually had an opportunity to influence the fleet and network structure. Within that time they've had the ability to veto any fleet expansion plans for routes not to their liking.
The first chance to modify the network significantly will not come until winter 2010, with the slot pairs for that in negotiation the spring before.
The only consolidation short haul could well be at the Scottish end.
MAN long haul ops were turning a profit when cargo was included in the figures (management conveniently overlooked the cargo revenue when deciding to close the base!) So we may see some revisitation there. Although I seriously doubt that it will involve any return to the Caribbean (seen to be too 'charter' and against the LH mantra to serve the 'business' end of the spectrum.
You can be rest assured that there is something in the pipeline. bmi are well positioned to meet the demanding conditions face to face and survive. It won't be easy but who ever said surviving in the airline industry was going to be 'a walk in the park'
It's always been a business with a massive turnover and tiny margins and there's still too many unforeseen fluctuations ahead.
The Dr.
The pilot Union saw an outside airline operating previous BMed/BMI A321 routes as a direct threat to the SCOPE agreement and dug their heals in
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Before anyone disputes my last post though. I was referring to network expansion. It's already accepted that Palma and Venice could go as soon as the winter schedule with Dublin constantly under review.
AMS, PMI and VCE going for the winter. Looks like Dublin is hanging in there for the time being with Amsterdam being the sacrificial lamb to free up Heathrow slots for the time being.
Join Date: Jan 2008
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Brian
What are bmi trying to free up slots for, exactly? Are these going to mid-haul as more B|MED slots move back to BA?
Perhaps selling them. I still can't see why even the mighty Lufthansa needs 85 slots a day ex-LHR.
Don't shoot me down. These are hard times and cash is king.
Perhaps selling them. I still can't see why even the mighty Lufthansa needs 85 slots a day ex-LHR.
Don't shoot me down. These are hard times and cash is king.
BMI experience,recent
No complaints with either aircraft oe service ,however the catering department needs to try harder!On the leg Cairo/london chicken and rice was unimaginative and caused me to stay at home all next day!The return leg was delayed 45 minutes and the 0915 became 1005,when the food was served about 1200 the flight attendant said"Beef or vegaterian",I chose the beef which turned out to be a sausage/ommelete/beans and chips ensemble which I thought a little odd.Yes it probably was some other flights breakfast trays!!Am I being picky or are there others who have experience of thier catering?