BMI
Join Date: Jan 2008
Location: UK
Posts: 22
Likes: 0
Received 0 Likes
on
0 Posts
Risk
The question is how the redundancies will be done. It is probable that all bmi pilots wil receive a letter of risk very shortly. The protocol used for redundancy will then be argued over the 90 day consultation process.
An interesting angle is that those very senior bmi Pilots at outstations are no longer untouchable.
A responsibility lies somewhere with why we have a situation unfolding where the redundancy protocol is going to be established during a consultation process? bmi management or BALPA or both??
An interesting angle is that those very senior bmi Pilots at outstations are no longer untouchable.
A responsibility lies somewhere with why we have a situation unfolding where the redundancy protocol is going to be established during a consultation process? bmi management or BALPA or both??
Join Date: Aug 2004
Location: N/A
Posts: 167
Likes: 0
Received 0 Likes
on
0 Posts
This very same drama unfolded almost exactly a year ago with Baby. Everyone called to a meeting and informed that the redundancy policy in our contract of empolyment (LIFO) was not going to be applied. When asked exactly what the criteria to be used would be we were informed we'll let you know when we've worked it out. What do HR do all day?
A year later and nothing has changed. Our contract employment still states LIFO as the redundancy policy and we know that won't be followed in the ensuing redundancies.
What do HR / BALPA do all year?
A year later and nothing has changed. Our contract employment still states LIFO as the redundancy policy and we know that won't be followed in the ensuing redundancies.
What do HR / BALPA do all year?
Join Date: Oct 2002
Location: sussex
Posts: 613
Likes: 0
Received 0 Likes
on
0 Posts
If the Mail is to be believed today then BMI will be selling a substantial number of LHR slots to keep it afloat, requiring £190M of additional funding (whch LH will not put up) to see it through to Oct 2010.
Join Date: Mar 2008
Location: Newcastle NI
Posts: 824
Likes: 0
Received 0 Likes
on
0 Posts
Lifo/balpa= Think Deck Chairs & Titanic
From The Times November 11, 2009
Financial crisis could force bmi out of business in under a year
British Midland (bmi) has admitted that it may not be able to continue as a going concern beyond next year in the face of an acute funding crisis at the airline.
The full extent of bmi’s difficulties are revealed in previously unpublished financial accounts seen by The Times. The document reveals that bmi, which employs 4,800 people, needs £190 million of additional funding by the end of next October.
Lufthansa, the German flag carrier that took control of bmi this year, has pledged £95 million to that target. The Derby-based airline hopes to make up the rest by selling its lucrative slots at Heathrow.
The airline’s funding situation is sufficiently precarious for Deloitte, its accountant, to warn that there is uncertainty about whether the airline can carry on. The accounts were signed off on October 23 and Deloitte made it clear that there was no guarantee Lufthansa would stand behind its British subsidiary or give it further financial support.
In addition, bmi has revealed that its pre-tax losses last year were £155.6 million, compared with a profit of £15.5 million the year before. That loss is more than 50 per cent higher than the £99.7 million that bmi had previously claimed it lost in 2008. The lower figure was still being used on the company’s website last night.
The airline said that the discrepancy was caused by late audit adjustments. It also said in its accounts that it was in “significantly advanced” talks with several airlines to sell Heathrow slots.
Because of the uncertainty over how much that sale could raise and whether Lufthansa was willing to provide more cash, the directors of bmi were forced to give a grim assessment of its prospects.
They said: “The achievability of the forecast, the ultimate level of group funding and timing and value of slot sales indicate the existence of material uncertainties, which may cast significant doubt about the group and company’s ability to continue as a going concern and, therefore, the group and the company may be unable to realise their assets and discharge their liabilities in the normal course of business.”
Much of bmi’s value lies in its ownership of 11 per cent of the landing slots at Heathrow. Slot pairs have traded for tens of millions of pounds in the past but their value has fallen in the recession. The airline has cut the value of its slots by 20 per cent from £770 million to £616 million.
Lufthansa has also forced the airline to stop listing the slots as assets in its balance sheet. This accounting change resulted in bmi reporting a total loss of £930.6 million since its previous annual report.
Lufthansa took control of bmi when Sir Michael Bishop, the former chairman, exercised an option to sell his 50 per cent stake to the Germans for about £220 million. The deal was completed in June. Lufthansa then put bmi up for sale and had discussions with British Airways and Virgin Atlantic but decided that the offers were too low. The German carrier brought in Wolfgang Prock-Schauer as chief executive and restructuring began last week when bmibaby, the low-cost operation, said that it would cut 25 per cent of its workforce and reduce its fleet from 17 aircraft to 12.
Financial crisis could force bmi out of business in under a year
British Midland (bmi) has admitted that it may not be able to continue as a going concern beyond next year in the face of an acute funding crisis at the airline.
The full extent of bmi’s difficulties are revealed in previously unpublished financial accounts seen by The Times. The document reveals that bmi, which employs 4,800 people, needs £190 million of additional funding by the end of next October.
Lufthansa, the German flag carrier that took control of bmi this year, has pledged £95 million to that target. The Derby-based airline hopes to make up the rest by selling its lucrative slots at Heathrow.
The airline’s funding situation is sufficiently precarious for Deloitte, its accountant, to warn that there is uncertainty about whether the airline can carry on. The accounts were signed off on October 23 and Deloitte made it clear that there was no guarantee Lufthansa would stand behind its British subsidiary or give it further financial support.
In addition, bmi has revealed that its pre-tax losses last year were £155.6 million, compared with a profit of £15.5 million the year before. That loss is more than 50 per cent higher than the £99.7 million that bmi had previously claimed it lost in 2008. The lower figure was still being used on the company’s website last night.
The airline said that the discrepancy was caused by late audit adjustments. It also said in its accounts that it was in “significantly advanced” talks with several airlines to sell Heathrow slots.
Because of the uncertainty over how much that sale could raise and whether Lufthansa was willing to provide more cash, the directors of bmi were forced to give a grim assessment of its prospects.
They said: “The achievability of the forecast, the ultimate level of group funding and timing and value of slot sales indicate the existence of material uncertainties, which may cast significant doubt about the group and company’s ability to continue as a going concern and, therefore, the group and the company may be unable to realise their assets and discharge their liabilities in the normal course of business.”
Much of bmi’s value lies in its ownership of 11 per cent of the landing slots at Heathrow. Slot pairs have traded for tens of millions of pounds in the past but their value has fallen in the recession. The airline has cut the value of its slots by 20 per cent from £770 million to £616 million.
Lufthansa has also forced the airline to stop listing the slots as assets in its balance sheet. This accounting change resulted in bmi reporting a total loss of £930.6 million since its previous annual report.
Lufthansa took control of bmi when Sir Michael Bishop, the former chairman, exercised an option to sell his 50 per cent stake to the Germans for about £220 million. The deal was completed in June. Lufthansa then put bmi up for sale and had discussions with British Airways and Virgin Atlantic but decided that the offers were too low. The German carrier brought in Wolfgang Prock-Schauer as chief executive and restructuring began last week when bmibaby, the low-cost operation, said that it would cut 25 per cent of its workforce and reduce its fleet from 17 aircraft to 12.
Join Date: Dec 2002
Location: Herefordshire
Posts: 545
Likes: 0
Received 0 Likes
on
0 Posts
BMI Babe..the clock is ticking..
Grim news in the UK media this morning (11th November) about BMI Baby's dire financial position. Seems they have a few months to raise £ millions... and Lufthansa may (or maybe may not) stump up half. For those employed by BMIBaby and wannabees... this ol timer hopes and prays that it all turns out OK. Good luck to you all. bm
I Have Control
Join Date: May 2004
Location: North-West England
Posts: 49
Likes: 0
Received 0 Likes
on
0 Posts
What about it, Sir Michael Bishop?
Sad indeed. MB coined it in the forced sale, and he knew what he was doing. He could easily afford to chip in £250 million, and still remain fabulously wealthy.
I have no faith in this man. Nevertheless, I sincerely hope he proves me wrong by demonstrating a real concern for the employees he betrayed for ill-gotten gain.
I have no faith in this man. Nevertheless, I sincerely hope he proves me wrong by demonstrating a real concern for the employees he betrayed for ill-gotten gain.
Join Date: Jan 2006
Location: 35,000 feet
Posts: 48
Likes: 0
Received 0 Likes
on
0 Posts
Wall Street Journal
LONDON (Dow Jones)--British Midland Airways, or bmi, Wednesday said it expected to be able to meet its financial commitments and had adequate resources to remain in operation.
Bmi, acquired earlier this year by German carrier Deutsche Lufthansa AG (LHA.XE), made its comments in a statement issued in response to an article in The Times newspaper, which suggested bmi might not be able to continue as a going concern beyond next year due to an acute funding crisis.
"The statement in the accounts clearly states that the directors and auditors believe that the company can meet its financial obligations going forward," bmi said in the statement.
"Additionally, with the current level of commitment shown by Lufthansa and with advanced business initiatives in place, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence in the future," it added.
The U.K. carrier currently is executing a restructuring plan to stem losses.
Bmi, acquired earlier this year by German carrier Deutsche Lufthansa AG (LHA.XE), made its comments in a statement issued in response to an article in The Times newspaper, which suggested bmi might not be able to continue as a going concern beyond next year due to an acute funding crisis.
"The statement in the accounts clearly states that the directors and auditors believe that the company can meet its financial obligations going forward," bmi said in the statement.
"Additionally, with the current level of commitment shown by Lufthansa and with advanced business initiatives in place, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence in the future," it added.
The U.K. carrier currently is executing a restructuring plan to stem losses.
Join Date: Jan 2003
Location: UK
Posts: 80
Likes: 0
Received 0 Likes
on
0 Posts
Better be one heck of a 'restructuring'.
The recovering economic climate is nothing more than a mini bubble at the moment. The nose dive in the economy is set to take up where it left off pretty soon.
I wonder how MB is spending his $220m (and the rest). Actually, don't think I want to wonder about that. Unpleasant thoughts seem to surface.
The recovering economic climate is nothing more than a mini bubble at the moment. The nose dive in the economy is set to take up where it left off pretty soon.
I wonder how MB is spending his $220m (and the rest). Actually, don't think I want to wonder about that. Unpleasant thoughts seem to surface.
Join Date: Jan 2003
Location: UK
Posts: 80
Likes: 0
Received 0 Likes
on
0 Posts
Will there be an official bmi to have an official bmi thread about?
As for baby. A fleet of 12 aircraft in the lo cost shark tank? Forget it. History. Why would Lufty throw their cash at such a hopeless case? They aren't that dumb.
As for baby. A fleet of 12 aircraft in the lo cost shark tank? Forget it. History. Why would Lufty throw their cash at such a hopeless case? They aren't that dumb.
Val d'Isere - you're possibly being a little too pessimistic.
Swiss (no, I don't mean Swissair) were on the verge of bankruptcy not so many years ago. They have now been turned around and are performing reasonably well - at least compared to other European network airlines.
bmi might need some significant changes - but it should be possible to turn it around.
History teaches that economies always do bounce back eventually. Yes, the recession in the UK is a bit grim right now, but it won't last forever
Swiss (no, I don't mean Swissair) were on the verge of bankruptcy not so many years ago. They have now been turned around and are performing reasonably well - at least compared to other European network airlines.
bmi might need some significant changes - but it should be possible to turn it around.
History teaches that economies always do bounce back eventually. Yes, the recession in the UK is a bit grim right now, but it won't last forever
Join Date: Jan 2006
Location: Cyprus
Age: 76
Posts: 270
Likes: 0
Received 0 Likes
on
0 Posts
What I think will be bmi's salvation is a coherent route structure, this can only happen if schedules with their parent Lufthansa are co-ordinated. I do not think they can survive as a stand alone airline. BA is sucessful because its shorthaul traffic feeds their longhaul network. I believe this is why Virgin is keen for a tie up, the two airlines together would be much stronger in partnership. In the past Bishop & Branson where at each others throats, maybe now it is possible for a re-appraisal.