Virgin/BMI merger
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Virgin/BMI merger
Virgin aims to merge with BMI
http://uk.biz.yahoo.com/02042008/323...rove-deal.html
http://www.birminghampost.net/birmin...5233-20711397/
http://uk.biz.yahoo.com/02042008/323...rove-deal.html
http://www.birminghampost.net/birmin...5233-20711397/
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http://news.bbc.co.uk/1/hi/business/7330137.stm
Looks like they might already be looking at ways to pay for it.
Looks like they might already be looking at ways to pay for it.
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According to the Yahoo! link above, Lufthansa would have to pay £229 million (plus an adjustment for inflation, but how much could this be?) for Bishop's shares. Is this all it would cost Lufthansa to control 80% of bmi's shares? Given the value of the slots alone (and open skies, of course) I'd have thought Lufthansa would be mad not to exercise its option to buy. Or is there something I'm missing here?
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Interesting article here on the whole bmi situation - spells out some of the possible options
http://www.flightglobal.com/articles...re-of-bmi.html
http://www.flightglobal.com/articles...re-of-bmi.html
PPRuNe Secret Agent!
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Seak62K,
That's how I read it too! Wow...
If this goes through, and Lufthansa would be mad not to, UK Pilots are running out of airlines and choice of work place...
That's how I read it too! Wow...
If this goes through, and Lufthansa would be mad not to, UK Pilots are running out of airlines and choice of work place...
Virgin/BMI
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The last paragraph in particular is interesting. If SQ is to divest its 49% in VS, well, LH is hardly cash strapped!
LH is already sitting on 30% of BMi, and could conceiveably buy SK's 20%. LH has a purchase rights on Bishops shares, and could conceiveably buy SQ's 49% of VS. With this in mind, why on earth should LH allow VS to take over BMi, when they could own the whole lot - and at a bargain price to boot!
LH is already sitting on 30% of BMi, and could conceiveably buy SK's 20%. LH has a purchase rights on Bishops shares, and could conceiveably buy SQ's 49% of VS. With this in mind, why on earth should LH allow VS to take over BMi, when they could own the whole lot - and at a bargain price to boot!
Paxing All Over The World
For many British, this has looked like a 'no brainer' for the past ten years. But on each occasion, Mr Bishop has always refused.
The only certainty is that BMI is due for a change, VS or LH.
The only certainty is that BMI is due for a change, VS or LH.
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Oooops, that'll teach me. I'd assumed this was a charter type flight. RTFP next time.
Even so, would it be permitted? Aren't these handheld radios allowed to be used by the unlicensed because of their limited range (which will be less limited at altitude)?
Tech Forum anyone?
Even so, would it be permitted? Aren't these handheld radios allowed to be used by the unlicensed because of their limited range (which will be less limited at altitude)?
Tech Forum anyone?
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Bishop is under no obligation to sell. bmi, regional and baby all belong to him, it is his train set.
Judging by the noises comming out of Toad Hall SMB is ready to takeover another Airline not merge with Virgin or anybody else for that matter.
Judging by the noises comming out of Toad Hall SMB is ready to takeover another Airline not merge with Virgin or anybody else for that matter.
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Bishop is under no obligation to sell. bmi, regional and baby all belong to him, it is his train set.
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I was at Midland for nearly 20 years and one thing that I can tell you is that Sir Michael Bishop is a tremendously charismatic bloke. If you have the pleasure of speaking to him then for those few moments he will make you feel like you are the most important person in the world.
More importantly I think that few would deny that he is an extremely shrewd business man. I remember that we all thought that it was curtains when he took £22M out of the company coffers on 9/12/2001 ( yes I do do my dates the American way...can’t get out the habit ) but the company went from strength to strength.
As for what’s coming out of Toad Hall then I would think that the Chinese whispers come from the Belvedere Suite itself to help throw off the hounds.
Having many friends at BD and despite one huge misfortune there myself I hope that the company does well in the future and maintains it’s identity if only so that it can still assert that it’s the only airline in the world with a stately home as it’s head office.
I think that I’m also right in saying that SMB did once say that he intends to hold on to the reins until Midland goes Trans Atlantic from LHR. ( I will humbly accept corrections to that ). I also think that he has the option to buy back the SK and LH shares at the price they paid for them all them years ago. Very cleaver if that’s the case.
One thing that I feel quite sure of is that when the truth comes out it’ll be far more interesting that the fiction.
More importantly I think that few would deny that he is an extremely shrewd business man. I remember that we all thought that it was curtains when he took £22M out of the company coffers on 9/12/2001 ( yes I do do my dates the American way...can’t get out the habit ) but the company went from strength to strength.
As for what’s coming out of Toad Hall then I would think that the Chinese whispers come from the Belvedere Suite itself to help throw off the hounds.
Having many friends at BD and despite one huge misfortune there myself I hope that the company does well in the future and maintains it’s identity if only so that it can still assert that it’s the only airline in the world with a stately home as it’s head office.
I think that I’m also right in saying that SMB did once say that he intends to hold on to the reins until Midland goes Trans Atlantic from LHR. ( I will humbly accept corrections to that ). I also think that he has the option to buy back the SK and LH shares at the price they paid for them all them years ago. Very cleaver if that’s the case.
One thing that I feel quite sure of is that when the truth comes out it’ll be far more interesting that the fiction.
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So,the raining back of BMI's 'open skies' plans and the putting
off of new aircraft deliveries starts to unravel this scenario.
Interesting times for BMI/BA at Heathrow!
MM
off of new aircraft deliveries starts to unravel this scenario.
Interesting times for BMI/BA at Heathrow!
MM
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Perception is a funny thing...
I have to praise Bransons PR machine. All the press refers to Virgins Takeover of bmi or Virgin's merger with bmi. This is due entirely to Bransons amazing PR ability and therefore image as being a huge player with the commanding position regarding takeovers etc.
If bmi converted all of its slots to long haul, it would be 5 times the size of Virgin. Currently Virgin has a large proportion of its business in the transatlantic market, at a time of US recession and increased transatlantic competition, add to that fuel costs.......
bmi on the other hand has held back from the dangerzone to watch the fallout from these bad times, whilst seeing a significant growth in high yield medium haul. It is no wonder that people want to buy bmi, after all, it is the best looking kid on the block.
Virgin is in a very bad place. I suggest it will start to cut it's frills very shortly and it's true state of affairs shall start to become apparent. If any of the big wigs start to jump ship then we can be certain.
Virgin doesn't want a tie up with bmi, it needs one. And Sir Michael has the upper hand. So wouldn't it be more logical to assume that bmi takeover Virgin than the other way round?? after all they are 5 times the size (in potential and assets) and in relatively far better shape.....I didn't even need to mention LH and all their money.
Don't be sucked in my the brainwashing of the beareded one.
Perception is a funny thing.......
If bmi converted all of its slots to long haul, it would be 5 times the size of Virgin. Currently Virgin has a large proportion of its business in the transatlantic market, at a time of US recession and increased transatlantic competition, add to that fuel costs.......
bmi on the other hand has held back from the dangerzone to watch the fallout from these bad times, whilst seeing a significant growth in high yield medium haul. It is no wonder that people want to buy bmi, after all, it is the best looking kid on the block.
Virgin is in a very bad place. I suggest it will start to cut it's frills very shortly and it's true state of affairs shall start to become apparent. If any of the big wigs start to jump ship then we can be certain.
Virgin doesn't want a tie up with bmi, it needs one. And Sir Michael has the upper hand. So wouldn't it be more logical to assume that bmi takeover Virgin than the other way round?? after all they are 5 times the size (in potential and assets) and in relatively far better shape.....I didn't even need to mention LH and all their money.
Don't be sucked in my the brainwashing of the beareded one.
Perception is a funny thing.......
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At last, someone who actually understands the facts. Virgin are in deep trouble, expect more PR from them.
When the EU deemed the Bermuda 2 agreement illegal, a few years back, SMB stated that `the shoe was firmly on the other foot`, well Richard, goodluck you are going to need it.
When the EU deemed the Bermuda 2 agreement illegal, a few years back, SMB stated that `the shoe was firmly on the other foot`, well Richard, goodluck you are going to need it.
Paxing All Over The World
Hudson Bay
Yes, that is how it has been for a long time and I expect that it will remain so until his death. He has been waiting for Open Skies and it is now arriving at the wrong time of the economic cycle and his star is past its apogee.
Two full-on entrepreneurs tend not to see eye-to-eye on the subject of mergers ... these two never have and never will. Nonetheless, from the point of view of a simple pax, with almost no doubling of routes and HUGE brand awareness of both, it appears to make the most sense.
Judging by the noises coming out of Toad Hall SMB is ready to takeover another Airline not merge with Virgin or anybody else for that matter.
Two full-on entrepreneurs tend not to see eye-to-eye on the subject of mergers ... these two never have and never will. Nonetheless, from the point of view of a simple pax, with almost no doubling of routes and HUGE brand awareness of both, it appears to make the most sense.
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If this ever did happen what sort of size would the company become assuming all routes were kept? (I'm including regional and intgrating baby into mainline?) Would it be comparable to the size of BA?