BMI
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Flypuppy
I think that if IAG own 100% of bmi it can do more or less as it pleases. However I suspect that the delay with the regional deal is now intentional on either DHL or IAG part. The 80/20 rule applies to all slots and if BA moves quickly to remove duplication on bmi/BA routes then the slots released may need bmir to fly them until such time as BA restructure its route network and brings more long haul capacity online, alternatively DLH may keep regional to feed its own hub networks.
Bmir in IAG is probably a safer position than baby in IAG having said that BA are going to need lots of pilots long haul routes are far crew heavier than short haul.
I'm still of the view that bmibaby will be disposed of prior to bmi into BA transfer date, but only leaves 3 weeks!
I think bmir into BA would be good for its pilot work force less so for other employees wish all luck going forward
Bmir in IAG is probably a safer position than baby in IAG having said that BA are going to need lots of pilots long haul routes are far crew heavier than short haul.
I'm still of the view that bmibaby will be disposed of prior to bmi into BA transfer date, but only leaves 3 weeks!
I think bmir into BA would be good for its pilot work force less so for other employees wish all luck going forward
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Granite?
Looking at the whole issue of restructuring, Granite will need one hell of a lot of £££'s to get the show on the road.
When you think about a brand new start up, stepping away from the BMi "brand", with the associated costs of new aircraft livery,staff/ corporate branding, new uniforms, new check in facilities/ customer services as well as an effective marketing budget, not withstanding the looming aircraft maintenance costs.
Its a huge risk for any invester to take without knowing if the new start up will generate enough revenue to get a reasonable return. I can imagine the wage bill in itself must be huge.
I just cannot see anyone willing to take such a financial gamble in this industry at the minute.
Good luck to all the guys there, hope it all works out!
When you think about a brand new start up, stepping away from the BMi "brand", with the associated costs of new aircraft livery,staff/ corporate branding, new uniforms, new check in facilities/ customer services as well as an effective marketing budget, not withstanding the looming aircraft maintenance costs.
Its a huge risk for any invester to take without knowing if the new start up will generate enough revenue to get a reasonable return. I can imagine the wage bill in itself must be huge.
I just cannot see anyone willing to take such a financial gamble in this industry at the minute.
Good luck to all the guys there, hope it all works out!
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Sale of bmi a little closer to completion
Looks like the OFT will not be looking into the sale of bmi to IAG. Another step closer to the end of bmi. Good news if your name is Willy not so good if it's Richard
OFT will not ask for UK probe on Bmi purchase | ABTN
OFT will not ask for UK probe on Bmi purchase | ABTN
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I think that if IAG own 100% of bmi it can do more or less as it pleases
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They can't sell/give/dump regional to Flybe though without the BE Management and at least some of their other shareholders agreeing
Chieftan o'the Pudden Race
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If the OFT is not concerned, then I guess the likelyhood of the EU waving the deal through is pretty high...
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More likely that BA would ditch most of BMI regional and keep the most business-centric routes ex-ABZ to be merged into the BA Cityflyer operation...possibly with some E145s initially to be replaced by E170s ultimately (keep costs down due fleet commonality, even if they don't really need 70-odd seats on some of the ABZ routes)???
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I still think its a little early to write off the Granite Aviation interest. I know its only got (potentially) a couple of weeks to go before the BMI/IAG deal is finalised but I feel this bargain is more important to the bigger players than people realise. This is the land of the 11th hour deal after all.
Its a known fact that the long haul carriers (in part) rely on the regional operators to feed their hubs. BA/IAG still need to be a little careful that this particular apple cart stays upright. Its for this reason I believe some of the political posturing this side of the border RE route integrity may be a little over enthusiastic. The balance between domestic and overseas slots at the major London airports is a delicate one, rob too many of the domestic slots and you face starving your foriegn network and people will find somewhere else to route through (like Schipol). So I don't think its a simple matter of the airline being stripped of its Heathrow slots, then cast aside should it come to a BA integration.
Its my feeling that Flybe (although with enough money in the bank to either buy or be paid to inherit the debt) are: 1. Too busy elsewhere to administer another take over and, 2. Are trying to build up cash reserves/flow in order to meet higher fuel prices, which hasn't been touched on much but surely must be a factor especially with the thirstier older Baby fleet.
Its a known fact that the long haul carriers (in part) rely on the regional operators to feed their hubs. BA/IAG still need to be a little careful that this particular apple cart stays upright. Its for this reason I believe some of the political posturing this side of the border RE route integrity may be a little over enthusiastic. The balance between domestic and overseas slots at the major London airports is a delicate one, rob too many of the domestic slots and you face starving your foriegn network and people will find somewhere else to route through (like Schipol). So I don't think its a simple matter of the airline being stripped of its Heathrow slots, then cast aside should it come to a BA integration.
Its my feeling that Flybe (although with enough money in the bank to either buy or be paid to inherit the debt) are: 1. Too busy elsewhere to administer another take over and, 2. Are trying to build up cash reserves/flow in order to meet higher fuel prices, which hasn't been touched on much but surely must be a factor especially with the thirstier older Baby fleet.
So I don't think its a simple matter of the airline being stripped of its Heathrow slots, then cast aside should it come to a BA integration.
bmi, bmi Regional, bmi Baby; separate companies, separate AOCs.
YS
Chieftan o'the Pudden Race
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I am hoping that now the OFT have has given the green light for the Mainline deal, we might now see some attention being paid to the Regional deal.
It certainly is far too early to write off Granite. A week is a long time in this game...
It certainly is far too early to write off Granite. A week is a long time in this game...
lazy fairweather PPRuNer
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Yellow sun, you are of course quite correct about the slots, my apologies. As for the AOCs, you are equally correct although that does not stop them being lumped into the same deal should it come to it.
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Flypuppy, The OFT haven't given the green light for the mainline deal. According to ABTN;-
They have simply said they will not add a duplicate investigation on to the EC judgement.
The OFT said the EC was the best place to examine the competition implications of the deal because it involved flights going across several European jurisdictions and the commission had “extensive expertise in handling airline merger cases”.
Sheldon Mills, the OFT’s director of mergers, said: “The proposed acquisition of Bmi by IAG has generated a significant level of concern in the UK especially in Scotland, the north-west of England and Northern Ireland.
“We consider that the transaction should be subject to a careful and detailed review and we will continue to work closely with the European Commission to ensure that UK airline passengers will not lose out through the proposed deal.”
Sheldon Mills, the OFT’s director of mergers, said: “The proposed acquisition of Bmi by IAG has generated a significant level of concern in the UK especially in Scotland, the north-west of England and Northern Ireland.
“We consider that the transaction should be subject to a careful and detailed review and we will continue to work closely with the European Commission to ensure that UK airline passengers will not lose out through the proposed deal.”
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Flypuppy, the OFT has not approved the mainline deal....they have said that they don't intend launching a parallel investigation themselves when the EC is already reviewing the case and has enough expertise to do it themselves. That's not to say the EC won't approve but until at least 16th March we won't know. At that time they might approve, or say they want more time to consider some of the issues....the 16th is just the initial deadline. It could be spun out for a further 3 months in the worst case.
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Wasn't that good a POW camp - one of the internees was the only German to escape from Britain back to Germany in either world war! Gunther Plüschow - Wikipedia, the free encyclopedia
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SMB owns the Hall? Complete and utter b*ll*cks. The Hall is owned by the company....always has been since it was bought for about £1m way back when. Thats why the cost of having it as the HO was actually very low as only day to day running costs were incurred and depreciation on freehold buildings were nominal. Just like the old rumour about SMB owning the aircraft and leasing them to the company, this has absolutely no grounding in truth....but as the journos would say, don't let the facts get in the way of a good story!
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Despite the success of low-cost carriers, he insists BMI's future is secure, although he acknowledges he has a fight on his hands. One constant refrain he would like to answer is the accusation that BMI's headquarters, Donington Hall, is a "mansion", while EasyJet is run from a prefabricated orange shed at Luton airport.
"I paid £185,000 for Donington Hall 20 years ago," he complains. "It was probably cheaper than their tin hut in Luton. But because it's a nice symbol, people don't let the facts get in the way."
Quoted from the Guardian 2002, so Donington Hall didn't cost SMB millions but am certain that it has cost bmi millions!
"I paid £185,000 for Donington Hall 20 years ago," he complains. "It was probably cheaper than their tin hut in Luton. But because it's a nice symbol, people don't let the facts get in the way."
Quoted from the Guardian 2002, so Donington Hall didn't cost SMB millions but am certain that it has cost bmi millions!
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Flypuppy, the OFT has not approved the mainline deal
It is in no one's interest to spin this purchase out for another 3 months.
OFT statement on IAG/bmi merger - The Office of Fair Trading