BMI
Join Date: Mar 2011
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BMI sold for £172.5 million
CNBC and BBC reporting that the deal has been done between Lufthansa and IAG.
BMI sold to IAG for £172.5 million. Job losses to follow.
Happy F?cking Christmas.
BMI sold to IAG for £172.5 million. Job losses to follow.
Happy F?cking Christmas.
Join Date: Sep 2003
Location: DE74
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I imagine the emphasis will be on the short in "short term" in connection with the bmi brand. Most BA corporate customers will want the BD routes adding to their existing BA/IB/AA contracts swiftly. Executive Club members will want to earn and burn on BD routes. And BA has no history of maintaining brands of airlines it purchased (Dan-Air, Brymon etc), although of course this time it is IAG doin the buying not British Airways - but I still think BD will be rebranded fast, with "operated by bmi" in small print on aircraft noses in order to "keep bmi as a going concern" for legal/merger reasons.
Donington Hall allegedly already up for sale.
While it is sad to see an airline brand with an East Midlands history be devoured it will in the medium term secure more jobs than are lost.
I have previously received the same news about my airline employer being purchased by a European big boy at the same time of year. While we did worry things turned out ok. I hope the same applies to BD employees, especially those currently not based at Heathrow.
Donington Hall allegedly already up for sale.
While it is sad to see an airline brand with an East Midlands history be devoured it will in the medium term secure more jobs than are lost.
I have previously received the same news about my airline employer being purchased by a European big boy at the same time of year. While we did worry things turned out ok. I hope the same applies to BD employees, especially those currently not based at Heathrow.
Join Date: Nov 2007
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Obviously the ground engineer was incorrect. (BMI bought by IAG)
How about the cateerer though? Was expecting a deal to have gone through by now!
Wonder why the Regional deal is taking so long, initially word was that it would complete by End November, then End December.
Time to pull the black and yellow??
How about the cateerer though? Was expecting a deal to have gone through by now!
Wonder why the Regional deal is taking so long, initially word was that it would complete by End November, then End December.
Time to pull the black and yellow??
Join Date: Jan 2008
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Interesting that Lufthansa seem virtually bound to sell off bmibaby before the deal completes or there will be a "Significant price reduction if Lufthansa does not opt to sell bmibaby before completion" - who's in the market to buy it?
Join Date: Oct 2007
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Some interesting questions from the limited info released: 56 slot pairs is a lot less than the 80+ that bmi held when LH took over. Assume they have retained quite a lot as payment for loans pumped in over the 2 years as only reported sales have been to BA.
Pension scheme staying with a UK subsidiary of LH.....hope the trustees have got a LH parent company guarantee given the size of the deficit!
Timetable looks optimistic as EC clearance unlikely to be obtained in phase 1 investigation (1 month from submission of application with all info the commission requires). Much more likely to go second phase procedure to deal with the overlapping route issues and to try to find other carriers willing to enter the affected markets (mainly domestics). Just because VS complains doesn't mean they will get slots to fly whatever routes they fancy.
Baby clearly won't last long in current form as BA say they don't want it and price adjustment downwards if they have to keep it, to deal with offloading at a loss or closure. I don't buy the suggestions here that an airport will buy it....would be no strategic logic at all, and can't see what's in it for another lo cost either unless a large dowry goes with it.
Regional deal rumoured to have been signed last week but funding is believed to be a problem....getting cash from banks or private equity to buy airlines in the current market must be a challenge with the uncertain security that an Embraer 145/135 fleet provides. Will Woodley and Ross be able to persuade someone? If not what will BA do with it?
Good luck to all at bmi....still some way to go unfortunately as its still LH's until competition clearance and don't expect BA to be making any specific announcements about jobs other than what Willie has said already until it is legally theirs.
Pension scheme staying with a UK subsidiary of LH.....hope the trustees have got a LH parent company guarantee given the size of the deficit!
Timetable looks optimistic as EC clearance unlikely to be obtained in phase 1 investigation (1 month from submission of application with all info the commission requires). Much more likely to go second phase procedure to deal with the overlapping route issues and to try to find other carriers willing to enter the affected markets (mainly domestics). Just because VS complains doesn't mean they will get slots to fly whatever routes they fancy.
Baby clearly won't last long in current form as BA say they don't want it and price adjustment downwards if they have to keep it, to deal with offloading at a loss or closure. I don't buy the suggestions here that an airport will buy it....would be no strategic logic at all, and can't see what's in it for another lo cost either unless a large dowry goes with it.
Regional deal rumoured to have been signed last week but funding is believed to be a problem....getting cash from banks or private equity to buy airlines in the current market must be a challenge with the uncertain security that an Embraer 145/135 fleet provides. Will Woodley and Ross be able to persuade someone? If not what will BA do with it?
Good luck to all at bmi....still some way to go unfortunately as its still LH's until competition clearance and don't expect BA to be making any specific announcements about jobs other than what Willie has said already until it is legally theirs.
With LH is taking on the pension liability £172.5m looks cheap, the slot portfolio alone must be worth consideraably more. Presumably it reflects the high level of BMI's expected losses in the short term and the likely restructuring costs.
It will be interesting to see what the regulatory authorities want in terms of slot divestments and if they must be sold or surrendered.
The obvious thing is for BMI to become a BA franchise with BA reallocating domestic slots to European services, "babysitting" them for use on long haul in the longer term.
Will Virgin be interested in starting services on some of BD's longer haul routes such as Saudi Arabia, Cairo & Moscow? They will doubtless acquire enough slots from the regulators but will they be able to make a success of them?
You may see one plane kept in bmi livery for PR purposes & the BD code used on charter flights on a Saturday afternoon. It doesn't really make any sense to keep the brand.
Doubtless the best result for bmi but I certainly wouldn't want to be one of their employees, certainly outside Heathrow.
It will be interesting to see what the regulatory authorities want in terms of slot divestments and if they must be sold or surrendered.
The obvious thing is for BMI to become a BA franchise with BA reallocating domestic slots to European services, "babysitting" them for use on long haul in the longer term.
Will Virgin be interested in starting services on some of BD's longer haul routes such as Saudi Arabia, Cairo & Moscow? They will doubtless acquire enough slots from the regulators but will they be able to make a success of them?
You may see one plane kept in bmi livery for PR purposes & the BD code used on charter flights on a Saturday afternoon. It doesn't really make any sense to keep the brand.
Doubtless the best result for bmi but I certainly wouldn't want to be one of their employees, certainly outside Heathrow.
Join Date: Oct 2006
Location: Ireland
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Update on Ireland...
IAG's chief executive, Willie Walsh, told Morning Ireland that BMI's business is not sustainable in the current form and today's deal still faces regulatory hurdles. He says that once the transaction is complete, then the issue of restructuring will be addressed.
Mr Walsh says IAG will retain the Belfast to Heathrow slots and also said he wants to retain the Dublin-Heathrow slot. He says the scale of BMI's Dublin-Heathrow services are small and when the deal is complete, this may be looked at when IAG takes control of BMI.
Mr Walsh - a former chief executive of Aer Lingus - says the main interest of IAG centres on BMI's valuable Heathrow slots. He says that BMI operate small aircraft and he wants bigger planes to be used in Heathrow to make the business more profitable.
IAG's chief executive, Willie Walsh, told Morning Ireland that BMI's business is not sustainable in the current form and today's deal still faces regulatory hurdles. He says that once the transaction is complete, then the issue of restructuring will be addressed.
Mr Walsh says IAG will retain the Belfast to Heathrow slots and also said he wants to retain the Dublin-Heathrow slot. He says the scale of BMI's Dublin-Heathrow services are small and when the deal is complete, this may be looked at when IAG takes control of BMI.
Mr Walsh - a former chief executive of Aer Lingus - says the main interest of IAG centres on BMI's valuable Heathrow slots. He says that BMI operate small aircraft and he wants bigger planes to be used in Heathrow to make the business more profitable.
Join Date: Apr 2004
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My personal opinion is that Baby will not be sold and will continue to operate for S'12 in current form. It will then slowly be dismantled and you'll see a lot more Embraers and Q400's in and around EMA/BHX.
BA have no interest in keeping Baby as it is, its prime for a re-vamp with BA partner Flybe taking over the reigns.
BA have no interest in keeping Baby as it is, its prime for a re-vamp with BA partner Flybe taking over the reigns.
Join Date: Sep 2011
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Oh well thats that then. a lovely bunch of guys n gals n will be missed in Dublin by all the staff when the plug is pulled on the dub lhr route. gods speed and live long and prosper.
Join Date: May 2011
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So let me get this right - £170m for BMI.
If bmibaby is part of the deal, the price drops.
If regional is part of the deal, the price drops.
That seems good footing for a nominal £1 purchase of baby IMO.
If bmibaby is part of the deal, the price drops.
If regional is part of the deal, the price drops.
That seems good footing for a nominal £1 purchase of baby IMO.
Join Date: Oct 2002
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Not difficult to see what IAG will take out of BMI with Walshs statements today.
If the leases can be renegotiated then BA might find itself with a new fleet at LGW.
The pension hurdle was a big one,the outcome which will be very worrying to people in the BMI scheme.
If the leases can be renegotiated then BA might find itself with a new fleet at LGW.
The pension hurdle was a big one,the outcome which will be very worrying to people in the BMI scheme.
Join Date: Apr 2002
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Agreement for bmi purchase by IAG
IAG has informed the Stock Exchange today that it has reached agreement with Lufthansa to acquire bmi, subject to regulatory clearance.
IAG hope the regulatory process can be concluded within the next few months.
IAG hope the regulatory process can be concluded within the next few months.
Join Date: Aug 2002
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The obvious thing is for BMI to become a BA franchise with BA reallocating domestic slots to European services, "babysitting" them for use on long haul in the longer term.
There is no business case for the BMI brand surviving, none at all. LHR-BHD / DUB will have the option to be served via Aer Lingus' existing DUB and BFS services, freeing up slots for long haul, as the model states. BA could not make Northern Ireland pay and if anything it's less likely to work now.
As for Virgin, they're no longer serious players, and they certainly do not have the skill set in place to save BMI, not in a million years.