BMI

[jerboy]

ie reduce regional connectivity within the UK to LHR by transferring slots to long haul

Of course they will rationalise, there clearly isn't room for the current capacity on some of these domestic routes. However, regional feed will always be an important part of BA's LHR operation as such huge numbers of these passengers then go onto long haul services. If they did cut the domestic capacity too much, then passengers would be lost via other hubs: AMS, FRA, DXB, CDG and the like.

I don't hear such moaning that "easyjet have a monopoly on LTN-EDI" or "Ryanair are the only operator DUB-STN". Hell, BA have had a monopoly on LHR-NCL for donkeys years and the prices are still pretty comparable to the other domestics.

Why is it when other airlines carve out their niche (a la EZY at LTN or FR at STN) that no one seems to bother about a 'route monopoly'.

Of course LHR is slot restricted but no one in their right mind would set up a new short haul operation ex-LHR. You need the long haul network to support the short haul and no one has a sizable enough one of those, not even VS.

[Jamie2k9]

It is not just UK routes either; I suspect bmi Dublin services will be withdrawn, handing a monopoly to Aer Lingus - who of course already codeshare with BA on this route. So it does have issues other than in west London, and indeed the UK.

And the point is....there is 5 other airprots in London that are connected to Dublin. Aer Lingus just like all other airlines have a monopoly on certain routes.

Ryanair have a monopoly on DUB-STN, LTN
Cityjet have a monopoly on DUB-LCY
Aer Lingus have a monopoly on DUB-SEN
Only DUB-London route with no monopoly is LGW and LHR (for now). The only thing that will drive up EI prices for LHR flights is the 13% increase in LHR charges for EI in 2012.

[Skipness One Echo]

no one in their right mind would set up a new short haul operation ex-LHR. You need the long haul network to support the short haul and no one has a sizable enough one of those, not even VS.

Well said, this is key. Everything else is BLAH! The actual routes on which real competition issues arise on the London airports with BA buying BD are tiny! Too many still see BD as the competitor with BA they were as British Midland, that airlines has not existed for over a decade. BD is niche.

[Artie Fufkin]

British Airways Owner IAG Offers More Remedies for BMI Deal
By Peter Chapman and Steve Rothwell - Mar 28, 2012 2:31 PM GMT+0100


European Union Competition Commissioner Joaquin Almunia said he’s studying additional remedies offered by British Airways’ parent International Consolidated Airlines Group SA (IAG) in its bid to acquire Deutsche Lufthansa AG (LHA)’s BMI unit.

IAG (IAG) has offered additional measures to assuage EU antitrust regulators after its initial proposals were rejected by parties that may be affected by the deal, Almunia told reporters in Brussels today. Virgin Atlantic Airways Ltd. and Scottish lawmakers oppose the deal, saying it would eliminate passenger choice by giving British Airways a monopoly on routes from Scotland to London’s Heathrow airport.

“The Commission must not waver from its purpose of protecting competition and with it the best interests of the consumer,” Virgin Atlantic said in an e-mailed statement in response to Almunia’s remarks today. “We will continue to challenge this deal unless robust remedies are offered which protect the best interests of the passenger.”

IAG, based in London, agreed in December to buy BMI, the second-biggest operator at London’s Heathrow airport, for 172.5 million pounds ($274 million). The carrier wants to use BMI’s take-off and landing slots to expand British Airways flights to fast growing emerging markets in Asia and Latin America.
‘Remedy Slots’

“We received yesterday additional proposals for remedies coming from IAG,” Almunia said. “The original remedies proposed by IAG were market tested and the opinion of the stakeholders consulted was negative.”

Virgin Atlantic, based in Crawley, England, said in the statement that it would use any “remedy slots” that it may acquire from IAG, as part of regulatory clearance, on routes where British Airways would otherwise hold a monopoly.
IAG Chief Executive Officer Willie Walsh said March 20 that loss-making BMI would likely fail to survive if European antitrust regulators block the deal. Lufthansa CEO Christoph Franz said separately on the same day that disposing of BMI was the only way of safeguarding jobs at the carrier.

“I know the situation of many people working in BMI and many people having bought tickets on BMI flights,” Almunia said. “So I will try to advance as much as possible the analysis of how we can decide on this case.”

The European Commission has set a deadline of March 30 to rule on the deal.

Above was from Businessweek

[INKJET]

The Sprout's in Brussels will have more important things on their minds right now! Easter Holidays, their's that is!!

[ETOPS]

The original remedies proposed by IAG were market tested and the opinion of the stakeholders consulted was negative.”

Does this mean Sir Richard Branson will get the blame if things turn out badly for BMI?

[Say again s l o w l y]

This is playing with the livelihoods of 4500 people. It's all posturing and nonsense.

If it goes to a 4 month investigation, then IAG will walk away and Lufty will pull the plug. bmi will cease to exist.

There will still be no competition on the routes the Beardy one is worrying about, but 4500 people will be out of work.

Nobody wins. It's enough to make me spit feathers.

[richandhazel]

Couldn't agree more! Very worrying times with our future in the hands of the EU!

[EastMids]

Virgin Atlantic, based in Crawley, England, said in the statement that it would use any “remedy slots” that it may acquire from IAG, as part of regulatory clearance, on routes where British Airways would otherwise hold a monopoly.

So, not necessarily on routes to [say] Scotland then!!!

About time Branson was told to wind his neck in and the EU acted in the interests of bmi's employees, not the misplaced wanabees who won't actually deliver what they are trying to imply they will. Virgin should be ashamed - IMHO they have no intention of operating LHR-EDI etc,and this is just an opportunistic slot grab on their part and they should accept that there's a bigger picture.

Andy

[bex88]

Andy...... Spot on so glad someone has said it. Taking the moral high ground when they were involved in price fixing. For once I really hope the EU can see the big important picture and accept that not all routes can support two carriers and that is market forces. Green light on Friday or alternatively job hunt, the sand pit and divorce probably is my future.

[Cyrano]

Originally Posted by EastMids

So, not necessarily on routes to [say] Scotland then!!!

About time Branson was told to wind his neck in and the EU acted in the interests of bmi's employees, not the misplaced wanabees who won't actually deliver what they are trying to imply they will. Virgin should be ashamed - IMHO they have no intention of operating LHR-EDI etc,and this is just an opportunistic slot grab on their part and they should accept that there's a bigger picture.

Andy

Remedy slots will be route-specific (the Commission will allocate them to carriers who undertake to use them to operate the routes in question), so if Branson wants them he will have no choice but to operate the routes they relate to (e.g. EDI/MAN/GLA). He can't just take some slots and say "actually, I'd like to fly to <insert random lucrative BA monopoly destination here>".

[The Royal Family]

From almost daily communications from WPS, has anyone else noticed how very quiet he has become over the last few weeks? The last update was on the 16th March.
I am fearing the worst for tomorrow, come on WPS rally the troops

[bex88]

I would think he knows about as much as we do hence the silence. Apart from quoting Willie Walshes we are hopeful/confident the deal will get approval to Lufthansa's threats what can be said. I just hope people understand the gravity of tomorrows outcome 4800 people await their fate.

[Rougueg]

BREAKING NEWS - IAG to get BMI

Link

IAG to win EU approval to buy bmi airline - source - Finance News - London South East


lets hope the LSE has the facts correct!

[The Cleaner]

So if the beardy one gets some domestic slots like he wants and you have to 'use em or lose em' what the heck does he plan to fly them with? Think ABZ may struggle with an A330!
Or is just the usual Branson Bluster?

[JSCL]

I know little about the BMI drama but if he has to use these slots on those domestic routes, there's one thing that would make sense to me.

Virgin, Baby! 733's and 735's ready to go to serve those routes and naturally the name Virgin Atlantic wouldn't suit under the domestic routes. So it would make sense to me.

[The Royal Family]

JSCL, unfortunately those old 737's are based everywhere but LHR.

[The Royal Family]

More news links

IAG to win EU approval to buy bmi airline - source | Reuters

[JSCL]

TRF,

I know they aren't based at LHR, but they aren't going to find a method of filling those slots any time soon unless they purchase an existing operator.

[Aksai Oiler]

Virgin

Maybe he should buy Baby and then he can call it "Virgin Baby" or Virgin on the Impossible". I remember Virgin's last forray into UK shorty haul with a Viscount and B727.

I won't eat my words if it goes ahead, but I am also not pinning any hopes on RB moving into UK domestic.