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BMI bought by Virgin

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Old 23rd Sep 2011, 15:14
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BMI bought by Virgin

I have received from a good source that Virgin is to buy bmi with BA buying 6 slot pairs as part of the deal
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Old 23rd Sep 2011, 15:21
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Great, can I volunteer for the next add campaign please.
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Old 23rd Sep 2011, 15:26
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As Virgin is 49% owned by Singapore Airlines who have seen their investment become almost worthless I doubt if they would agree to throwing more money down the plughole.
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Old 23rd Sep 2011, 15:26
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Is this your source? http://www.pprune.org/airlines-airpo...2-bmi-137.html
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Old 23rd Sep 2011, 20:26
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Well the 6 Slot pairs is correct, as news already in the travel press, can not confirm or de-nigh the virgin info.
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Old 23rd Sep 2011, 20:51
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A pal of mine confirms that Lufty have started flogging BMIs slots.

Is this the end for BMI?

Sadly, it might be.
 
Old 23rd Sep 2011, 21:03
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You might want to change the entirely misleading thread title to something which actually reflects what you are saying, such as "Virgin to buy bmi?" or better still, contribute to the discussion on the same subjects on the existing bmi thread in Airlines, Airports & Routes.
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Old 24th Sep 2011, 00:59
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Millerscourt, what is your basis for valuing Virgin as virtually worthless?

Full explanation would be appreciated.....
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Old 24th Sep 2011, 09:07
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QAR ASR

Based on the fact that SIA have been trying to sell their 49% for many years with no takers because their £600m+ investment has returned virtually nothing in dividends.
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Old 24th Sep 2011, 10:07
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"It would be a peculiar competition body that would permit BA to takeover bmi..."

BA have taken over/acquired the likes of Caledonian, DanAir, Brymon over the years, I seem to recall. So wouldn't be that unusual for BA to snap up the competition?
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Old 24th Sep 2011, 12:35
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The front-runner has to still be BA, the slot sale could be part of a wider deal that is being struck. I think a bmi/Virgin arrangement could be a possibility but would be a nightmare to action financially and probably the same as an operation trying to compete with IAG. I think the thread title is inaccurate, who really knows except the people at the top of Lufthansa?
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Old 24th Sep 2011, 12:40
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If Virgin took over BMI I would bet that the whole lot would go down the pan in a year!

If LH can't make good of their investment with heaps and heaps of cash, then what chance do Virgin have? it's not like they are sitting on a ton of money that they are willing to throw about in some crazy attempt to make BMI work for them, Virgin have their own dwindling profit and market share loss to worry about, without taking on a company losing £660000 a day / 240million a year. BMI is dead, it's a shame because it's a great company.

If there was a way for Virgin to take BMI as it is, without it's debts, shut it down, and re open as Virgin Europe and feed the long haul network it might work, but as a going concern, it would kill both airlines, and fast.

Two wrongs rarely make a right, as BMI proved when purchasing B|MED

I like both airlines, but I don't see it working.
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Old 24th Sep 2011, 12:46
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If this happened, it WOULD become Virgin BMI quite likely i.e. Virgin British Midland - with the slots included, it could seriously challenge BA more in the LHR market for it's connections - I would personally love to see a Virgin product inter-EU, but at the same time, I would hate to see BMI and the guys at BMI go.

It's tense, but why stupid threads throwing theories around without backed up evidence? Sure, it's a rumour network etc etc etc - but why not just stick it to the BMI thread?

Using the footer:

As these are anonymous forums the origins of the contributions may be opposite to what may be apparent. In fact the press may use it, or the unscrupulous, or sciolists*, to elicit certain reactions.

*"sciolist"... Noun, archaic. "a person who pretends to be knowledgeable and well informed".
I think 'sciolist' is the correct word for most of this at the moment.
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Old 24th Sep 2011, 12:59
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The difference between bmi and Caledonian etc is that Caledonian were never the second biggest operator at LHR. That's why it's an issue as far as competition is concerned. Though having said that, the current 11% is far less of an issue than the 18% that it used to be.

Virgin would be stronger with bmi, and vice versa. Bmi needs better branding; Virgin needs better connectivity. It's a marriage made in heaven, and the workers at bmi have known that for years. Unfortunately, the heads of both airlines apparently didn't get on in the past ..... However, whether the investment of time and money now required to make it work is available to either is a different question.
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Old 24th Sep 2011, 13:25
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Apart from aquiring the Caledonian name again, BA never took over or aquired Caledonian- they were the inhouse subsidiary developed from BAirtours. Infact BA offloaded Caledonian to the Carlson group.
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Old 24th Sep 2011, 14:44
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BA have taken over/acquired the likes of Caledonian, DanAir, Brymon over the years, I seem to recall. So wouldn't be that unusual for BA to snap up the competition?
Competition law has strengthened considerably since the takeovers you mentioned.
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Old 24th Sep 2011, 14:49
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Cabin Crewe,

BA bought British Caledonian in December 1987. BCal retained the rights to the name Caledonian and BA rebranded Airtours as such in 1988.

Caledonian was sold to the Inspiration Group which was part of Carlson, in 1995. Inspirations became part of Thomas Cook in 1999. Then it was merged with Flying Colours to form JMC and then Thomas Cook.

If I remember correctly, BCal were in protracted negotiations with SAS during the summer of 87, when BA came along and in the space of 3 days a deal was done with BA, and that was the end of BCal. Is this prescient?
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Old 24th Sep 2011, 15:07
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I have received from a good source that Virgin is to buy bmi with BA buying 6 slot pairs as part of the deal
Perhaps you could ask your source when was the last time Virgin stumped up for an acquisition with cold hard cash?
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Old 24th Sep 2011, 15:31
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If BMI are losing as much as stated, perhaps Lufthansa would give them away to get them off the balance sheet...............
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Old 24th Sep 2011, 17:40
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As I said on the other thread, the 'Virgin Group' could buy BD, without the politics of VS/SQ. It could then be run like VX/VA until such a time as it could be brought together.
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