BMI
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From: LHR
The Financial Times also reports that IAG is a frontrunner to buy bmi mainline. Unless there is a big deal breaker, it looks like it's going to happen.
IAG in ‘detailed talks’ to buy BMI - FT.com
IAG in ‘detailed talks’ to buy BMI - FT.com
International Airlines Group has emerged as frontrunner to buy BMI British Midland, Lufthansa’s loss-making UK subsidiary.
IAG - parent of British Airways and Iberia - has entered “detailed talks” with Lufthansa and could conclude an outline deal to purchase BMI this month, which may then need regulatory approval, said people familiar with the situation.
IAG - parent of British Airways and Iberia - has entered “detailed talks” with Lufthansa and could conclude an outline deal to purchase BMI this month, which may then need regulatory approval, said people familiar with the situation.
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From: gate 67 JFK
Flypuppy
Pup
My " utter tosh" comment was in response to Ric's suggestion below
My source is pretty reliable. I am told that Eastern have submitted a bid and it is being considered by Lufthansa. Story is that Lufthansa are looking for quick injections of cash to offset the massive losses of the bmi group. I dont think they will be able to keep the regional name or branding. Eastern already have EMB-145s don't they?
DLH do not need a quick injection of cash, in fact the cash will probably flow the other way!, its not being sold to Eastern and the new Regional owners will keep the bmi Regional brand for at least 12 months, so yes it seems to me that it was utter tosh.
The only quick injection to date is the sale of slots, DLH have seen a slow down in Europe and will move to protect their balance sheet in various ways this winter.
My " utter tosh" comment was in response to Ric's suggestion below
My source is pretty reliable. I am told that Eastern have submitted a bid and it is being considered by Lufthansa. Story is that Lufthansa are looking for quick injections of cash to offset the massive losses of the bmi group. I dont think they will be able to keep the regional name or branding. Eastern already have EMB-145s don't they?
DLH do not need a quick injection of cash, in fact the cash will probably flow the other way!, its not being sold to Eastern and the new Regional owners will keep the bmi Regional brand for at least 12 months, so yes it seems to me that it was utter tosh.
The only quick injection to date is the sale of slots, DLH have seen a slow down in Europe and will move to protect their balance sheet in various ways this winter.
A Runyonesque Character
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From: The South of France ... Not
(aside)
Reuters - and Bloomberg, Associated Press, Agence France Presse etc - is in business to uncover news stories and sell them on to the press and other media. Of course the FT use their material.
Reuters - and Bloomberg, Associated Press, Agence France Presse etc - is in business to uncover news stories and sell them on to the press and other media. Of course the FT use their material.
Chieftan o'the Pudden Race
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From: Scotland usually, and often other parts of Europe
Inkjet,
I am very familiar with the Regional situation and the comment that
is absolutely untrue.
Branding may well be retained for up to 12 months but that does not in any way imply any form of financial input or subsidy from either bmi Group or Lufthansa.
I am very familiar with the Regional situation and the comment that
in fact the cash will probably flow the other way!
Branding may well be retained for up to 12 months but that does not in any way imply any form of financial input or subsidy from either bmi Group or Lufthansa.
Chieftan o'the Pudden Race
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From: Scotland usually, and often other parts of Europe
Not quite sure what you mean max, but the acmi arrangement is a standard contracted service offered by a provider (in this case, Regional) to bmi.
Inkjet, I would have thought you would know better than me
Rumours I have heard involve two UK based 737 operators in discussion with Lufty M&A.
Inkjet, I would have thought you would know better than me
Rumours I have heard involve two UK based 737 operators in discussion with Lufty M&A.
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From: London (Babylon-on-Thames)
If you seperate out bmi from bmi Regional how much of the below makes any sense?
ABZ-MAN - flybe target
ABZ-NWI - monopoly / niche
ABZ-GRQ - monopoly / niche
ABZ-EBJ - monopoly / niche
EMA-BRU - possible Brussels Airlines target
EDI-BRU - Brussels Airlines target
EDI-MAN - flybe target
EDI-LBA - monopoly
EDI-CPH - SAS target
EDI-ZRH - Swiss target
GLA-LBA - monopoly
GLA-CPH - SAS target
LBA-BRU - possible Brussels Airlines target
BRS-BRU - currently op for SN
NCL-BRU - currently op for SN
Take away all the LHR flying and the routes above that former STAR partners will be looking closely at, it's all very niche. The MAN routes would be wide open to predatory action by flybe especially once the bmi brand is removed. Glasgow is already vulnerable as it's a single aircraft that does three rotations per weekday and spends much more time parked than flying.
Edinburgh has potential, but more so for inbound traffic by SAS on the CR9 and Swiss on the RJ100 allowing both point to point AND connectivity, Aberdeen is nicely niche however.
The question I would be asking is just how much will remain after a sale? There are no synergies or economies of scale that I can see here, quite the contrary, and former partners will quite likely be tomorrow's competitors. Four routes to Brussels, two of which are operated on behalf of a (former) partner.
ABZ-MAN - flybe target
ABZ-NWI - monopoly / niche
ABZ-GRQ - monopoly / niche
ABZ-EBJ - monopoly / niche
EMA-BRU - possible Brussels Airlines target
EDI-BRU - Brussels Airlines target
EDI-MAN - flybe target
EDI-LBA - monopoly
EDI-CPH - SAS target
EDI-ZRH - Swiss target
GLA-LBA - monopoly
GLA-CPH - SAS target
LBA-BRU - possible Brussels Airlines target
BRS-BRU - currently op for SN
NCL-BRU - currently op for SN
Take away all the LHR flying and the routes above that former STAR partners will be looking closely at, it's all very niche. The MAN routes would be wide open to predatory action by flybe especially once the bmi brand is removed. Glasgow is already vulnerable as it's a single aircraft that does three rotations per weekday and spends much more time parked than flying.
Edinburgh has potential, but more so for inbound traffic by SAS on the CR9 and Swiss on the RJ100 allowing both point to point AND connectivity, Aberdeen is nicely niche however.
The question I would be asking is just how much will remain after a sale? There are no synergies or economies of scale that I can see here, quite the contrary, and former partners will quite likely be tomorrow's competitors. Four routes to Brussels, two of which are operated on behalf of a (former) partner.
Joined: Nov 2007
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From: UK
I would imagine that the first thing the new owners of Regional will do is change the name so as to distance themselves from any future BMI troubles.
Although the letter to BMI staff says that regional will keep the winter and summer 2012 schedules. I think that has been said to make the sale of other aspects of the group look more favourable.
I would suggest that some significant adjustments of the routes should be expected, before Summer 2012. Especially bearing in mind what Skipness One Echo said above.
Regional definitly has the Aberdeen market cornered but that is hardly enough to maintain a decent load on a fleet of 18 aircraft full time.
Will be interesting to see what occurs.
Although the letter to BMI staff says that regional will keep the winter and summer 2012 schedules. I think that has been said to make the sale of other aspects of the group look more favourable.
I would suggest that some significant adjustments of the routes should be expected, before Summer 2012. Especially bearing in mind what Skipness One Echo said above.
Regional definitly has the Aberdeen market cornered but that is hardly enough to maintain a decent load on a fleet of 18 aircraft full time.
Will be interesting to see what occurs.
Thread Starter
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From: LHR
A memorandum of understanding between IAG and Lufthansa has been signed according to Bloomberg:
Lufthansa May Have Deal to Sell BMI to BA - Bloomberg
Lufthansa May Have Deal to Sell BMI to BA - Bloomberg
Chieftan o'the Pudden Race
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From: Scotland usually, and often other parts of Europe
Why be so cryptic?
There are not that many UK based 737 operators that would fit with bmiBaby though...
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From: Hemel Hempstead
A British operator could mean many different things...
Jet2 - Do they need to expand via a ready made low cost airline?
flyBE - Do they have the money?
Thomson - Why do would they need a low cost airline?
Monarch - Seem to have a cautious approach...
British Airways buying both baby and mainline? Doesn't look logical, but you never know...
Virgin - maybe looking at relaunching European holidays?? - Virgin Sun?
Stelios?
Management buy-out/venture cap?
Jet2 - Do they need to expand via a ready made low cost airline?
flyBE - Do they have the money?
Thomson - Why do would they need a low cost airline?
Monarch - Seem to have a cautious approach...
British Airways buying both baby and mainline? Doesn't look logical, but you never know...
Virgin - maybe looking at relaunching European holidays?? - Virgin Sun?
Stelios?
Management buy-out/venture cap?