Bmibaby

[mart901]

It would have been nice to see some different routes from BHD but I guess summer sun is a safety shot. Its not just WW having bad loads, someone posted on EMA a FUA flight, FR I presume with 7 pax. Ive flown TOM to canaries at this time of year with around 50 pax on a 757

[EastMids]

Oh dear... From the IAG/BA/bmi announcement:

· Significant price reduction if Lufthansa does not opt to sell bmibaby before completion

So IAG get bmi CHEAPER if baby comes along with mainline... That would seem to indicate that both parties don't see any value in baby! I really hope that someone picks up baby - today's announcement might just indicate Lufthansa will let it go really very cheaply rather than take less from IAG if baby has to go along with mainline.

Andy

[Say again s l o w l y]

That line in the press release is a significant kick in the teeth for Baby.

I really feel for them at the moment, they've been treated like a ginger stepchild for a long time and now this.

Here's hoping that they get bought by someone who knows what to do with them.

[mart901]

Clearly low cost doesnt fit into BA's strategy! I reckon theres always some private venture capital company out there, some of them specialise in turning business's around or even rescuing them, like R-capital. It looks like LH will try to sell WW for any price so thats right up venture capital street.......buy it for little, turn it round and sell it for a load more 3 or so years later.

[GayFriendly]

I know they have their critics and to be honest I don't think they have ever been given the muscle needed to become a serious loco player but I have always had enjoyable on time flights with Baby and have (in general)served my local airport BHX very well and have a strong brand presence in the Midlands.

Good luck to all the staff concerned but it is clear that neither LH or BA see a future for Baby. BA are certainly not interested in low cost, at best BE take over some of their routes from BHX and maybe EMA, at worst the airline completely disappears with FR, Jet2 et al taking over any (if any?) profitable route pickings. I have my doubts that someone will buy it, if they do I think it will be a merger into another airline with the brand still disappearing. Very sad times indeed.

[EI-BUD]

The competition will be more confident than ever that bmibaby can be wiped off the map. Jet2 and Ryanair will ramp up EMA next summer and LH will simply wind up the operation. That's what I would expect now, if it is losing money, why would LH wait any longer than end of 2012 summer season to wind it up, given than bmi mainline will be gone and regional sale will likely will be complete.

Besides from a cost point of view, what shared services do bmi and bmibaby have? The cost benefit of WW using some bmi mainline services either management/head office/admin/systems etc etc add as appropriate, these will all become more expensive for WW as a standalone airline?

EI-BUD

[jabird]

For Team America fans, I can't help thinking poor baby is left like our recently departed dear reader.

I'm so ronery, nobody rikes me, and now I'm even less than worthless.

Sorry for those involved, I've never liked the name / brand but still a good service at a fair price, no complaints from the times I've used them.

[20feetretard]

Baby will grow up in to a fine upstanding member of the community now that it is likely to be freed from the shackles of uncaring parents. The future looks bright and the next few weeks are likely to bring positive news, the chance to really show what it can do and it should move with confidence in to the new year. Having it's destiny in it's own hands is a good thing.

[LGS6753]

Reading the press release from IAG today, there seem to be two alternatives re. bmibaby:

1. LH sell it before completing on the sale of the Group to IAG
2. LH fail to sell it, and take a lower price from IAG

If it has not been sold by the time LH complete the sale to IAG, it will go to IAG. I don't feel it's viable in LH without BMI. And LH want rid of it.

Unfortunately, baby is seen as a liability by both carriers - if it has any future, it will be under different ownership.

[crewmeal]

the chance to really show what it can do and it should move with confidence in to the new year. Having it's destiny in it's own hands is a good thing.

Closing 2 bases MAN & CWL. Not the wisest of moves in my view. To succeed the airline needs a lot of investment and to be properly marketed with proper advertising. Not using childish irritating voices sponsoring local ITV weather forecasts.

[20feetretard]

Closing the two bases was a requirement at the time. In your view it may not have been 'the wisest of moves' but with respect you were/are not likely to be aware of the circumstances both financial and operational that lead to the decision.
New owners will bring a new name and therefore a new brand. Baby will not be appropriate and therefore the current themed advertising will go.
Your other requirements to succeed will be met, why would you buy a company and then not invest in and market the product?

[SWBKCB]

What's happening with the appeal re the Baby vs Peel court case in connection with MME - wasn't it £15M? Where would the liability for this lie? Could be a complicating fact in any sale.

[EI-BUD]

I think the MME case was settled some time ago, last year I think.

[16024]

I think the MME case was settled some time ago, last year I think.

Well the first decision was overturned on appeal, and that reversal itself was subject to appeal. AFAIK that is the current situation.
Which leads to:

you were/are not likely to be aware of the circumstances both financial and operational that lead to the decision.

In relation to closing bases.
With respect to those whose job it is, or was, to make commercial decisions. If they had been correct at the time we wouldn't be having this discussion.
Waiting until summer of 2004 to try to expand, for example. Thereby having to sign up for punishingly expensive leases, and having to recruit anyone they could get their hands on at short notice. Even I could have done it better, and I'm just a driver.
On a positive note, a valid AOC, sound professional operations, good foothold on long term route structure. She's a going concern, and I hope there's a future.

[ryan2000]

Any buyer will need to look beyond legacy 737's. Maybe it should purchase the BMIbrand name if BA decide to drop it. This seems inevitable.

[pabely]

Don't you think the BMI brand is dead? It has had such negative press over the last year, who would want it? It has great people working for it but has been mis-managed for too long now.
I just hope IAG absorb the 'best' of the brand/people....

[MidlandDeltic]

mart901 wrote :

Clearly low cost doesnt fit into BA's strategy! I reckon theres always some private venture capital company out there, some of them specialise in turning business's around or even rescuing them, like R-capital. It looks like LH will try to sell WW for any price so thats right up venture capital street.......buy it for little, turn it round and sell it for a load more 3 or so years later.

BA have never been interested in low cost - even Go were not really low-cost.

Not sure baby is attractive to venture capitalists. There are no assets to speak of, so nothing to be stripped out. Old aircraft that need replacing - but with what penalties to get out of the leases? A brand which will need totally revamping or replacing, which takes time to build, in the face of established competitors such as Ryanair and the fast growing Jet2.

LH will now be keen to sell at any price, but I cannot see who will buy. Staff must hope for a purchaser however, because if it goes to BA they will shut it down - that is I suspect why the price paid to LH would be reduced, to covers the contingency costs of getting out of the leases etc.

MD

[OltonPete]

Brand

pabely

Not in the Midlands especially when it is followed by "Baby"
I am not sure how much of BMI's recent woes have even
been noticed in the Midlands until this week, as the main brand
both in the East and West has been BMI Baby for years now.

It would be unfortunate if the "BMI" bit had to be dropped
but I am sure that all concerned are planning life with or
without the BMI tag.

Ever how much those weather adverts seem irritating to some
it does seem to have worked and the brand is alive and well here.

Pete

[one day soon]

'Bmi brand' may be as good as dead, as some on here have suggested, however this is the 'Bmibaby' thread and to be fair to them 'Baby' is still a very well known brand in the North and Midlands areas. So maybe someone will see a benefit in purchasing a Brand name and solid workforce for what seems likely to be a VERY cheap price.
Heres hoping

[one day soon]

Well 'Pete'
Looks like you beat me to it by 2 minutes, D@mn my slow typing... I should stick to waggling joysticks