bmiBaby threads (merged)
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From today's Telegraph
IAG could see £80m knocked off bmi price after failure to sell bmibaby and bmi Regional
International Airlines Group is expected to see a "significant" sum knocked off its £172.5m purchase of bmi after Lufthansa's attempts to sell bmibaby and bmi Regional suffered a setback ahead of Friday's closing date.
International Airlines Group had agreed to buy bmi for £172.5m.
German company Intro Aviation and Dublin-based charter carrier ACL, two companies previously linked to a potential bid for bmibaby, are understood to no longer be interested in acquiring the low-cost airline.
IAG, the owner of British Airways, has already negotiated a sizeable discount with Lufthansa in the event that neither division is sold before the deal completes on Friday.
Some estimates in the City place the size of the reduction at around £80m.
The discount would reflect the financial liabilities and losses that would be taken on by IAG.
A spokesman for bmi insisted the company remained in negotiations with various parties over the two operations.
He said: "Regarding bmibaby and bmi Regional, discussions with potential buyers continue."
However, analysts are increasingly sceptical that a buyer can be found given the tough conditions in the aviation market.
Douglas McNeill, a transport analyst at Charles Stanley Securities, said: "Neither unit is a prime asset and it's not easy to see who would be willing to stump up hard cash for them."
IAG could see £80m knocked off bmi price after failure to sell bmibaby and bmi Regional
International Airlines Group is expected to see a "significant" sum knocked off its £172.5m purchase of bmi after Lufthansa's attempts to sell bmibaby and bmi Regional suffered a setback ahead of Friday's closing date.
International Airlines Group had agreed to buy bmi for £172.5m.
German company Intro Aviation and Dublin-based charter carrier ACL, two companies previously linked to a potential bid for bmibaby, are understood to no longer be interested in acquiring the low-cost airline.
IAG, the owner of British Airways, has already negotiated a sizeable discount with Lufthansa in the event that neither division is sold before the deal completes on Friday.
Some estimates in the City place the size of the reduction at around £80m.
The discount would reflect the financial liabilities and losses that would be taken on by IAG.
A spokesman for bmi insisted the company remained in negotiations with various parties over the two operations.
He said: "Regarding bmibaby and bmi Regional, discussions with potential buyers continue."
However, analysts are increasingly sceptical that a buyer can be found given the tough conditions in the aviation market.
Douglas McNeill, a transport analyst at Charles Stanley Securities, said: "Neither unit is a prime asset and it's not easy to see who would be willing to stump up hard cash for them."
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Lufthansa have screwed up the ownership and sale of the bmi Group.
They cost me my job, and the jobs of many good people.
Using the Arab Spring as an excuse is pathetic, the management team were worse than useless, and if I were a Lufthansa shareholder I would be asking some pretty searching questions about the amount of money they have p!ssed up against a wall. More than a BILLION euros in a 3 year period is pretty impressive. You really have to work hard to achieve that.
As for that e-mail that was received this afternoon, well, there is nothing like crapping on a grave. They couldn't have made clearer that we were the unwanted stepchild.
I just wonder how WPS can look himself in the shaving mirror.
Inkjet, how's it looking in Tiny Town?
They cost me my job, and the jobs of many good people.
Using the Arab Spring as an excuse is pathetic, the management team were worse than useless, and if I were a Lufthansa shareholder I would be asking some pretty searching questions about the amount of money they have p!ssed up against a wall. More than a BILLION euros in a 3 year period is pretty impressive. You really have to work hard to achieve that.
As for that e-mail that was received this afternoon, well, there is nothing like crapping on a grave. They couldn't have made clearer that we were the unwanted stepchild.
I just wonder how WPS can look himself in the shaving mirror.
Inkjet, how's it looking in Tiny Town?
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The way the sale process has been handled is so incompetent it is barely credible from a major international airline. To think that a company with only £7480 in the bank can run a low cost airline and save hundreds of jobs is just unbelievable. I hope that the whole story is revealed in the future but that doesn't help all of you who were depending on this deal to save your jobs.
Lufthansa still in talks over sale of low-cost carrier Bmibaby, but Flyforbeans not in the running - Business News - Business - WalesOnline
Lufthansa still in talks over sale of low-cost carrier Bmibaby, but Flyforbeans not in the running - Business News - Business - WalesOnline
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Flyforbeans, was established in 2008 with the initial aim of setting up a low-cost base from Cardiff Airport providing routes across Europe.
One of the founding directors of the business, Professor Jeremy Stone, was declared bankrupt last December.
His resignation details from Flyforbeans were published by Companies House in March.
Prof Stone is currently in the Arctic on a fundraising expedition for the Prince’s Trust.
Yesterday, Tim Lee, managing director of Flyforbeans, said: “We do not comment on rumours or speculation.”
However it is understood that Flyforbeans is no longer in talks over Bmibaby.
One of the founding directors of the business, Professor Jeremy Stone, was declared bankrupt last December.
His resignation details from Flyforbeans were published by Companies House in March.
Prof Stone is currently in the Arctic on a fundraising expedition for the Prince’s Trust.
Yesterday, Tim Lee, managing director of Flyforbeans, said: “We do not comment on rumours or speculation.”
However it is understood that Flyforbeans is no longer in talks over Bmibaby.
Last edited by johnnychips; 19th Apr 2012 at 23:46. Reason: Spelling
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now owned by BA .....
Travelmole
20 April 2012
IAG gets bmi at knock down price
International Airlines Group (IAG) has completed the purchase of bmi from Lufthansa, but has been saddled with bmibaby and bmi regional.
Under the deal, Lufthansa had been trying to offload bmibaby and bmi regional before the deal went through, but has failed to do so.
In a statement this morning, British Airways' parent IAG said under the terms of the purchase agreement, it will also acquire these businesses but with a "significant" price reduction.
Some analysts believe this could be as much as £80 million off the £172.5 million price.
The discount takes into account financial liabilities and losses that IAG is taking on.
IAG confirmed today that bmibaby and bmi regional are not part of its long term plans and will not be integrated into BA.
"IAG will pursue options to exit these businesses and more details will be provided in due course," said its statement.
"The costs associated with exiting these businesses, including the impact of operating them in the short term, are expected to be offset by the price reduction."
IAG said it will update investors about the bmi integration plan at its first quater results on May 11, 2012.
by Bev Fearis
IAG gets bmi at knock down price
International Airlines Group (IAG) has completed the purchase of bmi from Lufthansa, but has been saddled with bmibaby and bmi regional.
Under the deal, Lufthansa had been trying to offload bmibaby and bmi regional before the deal went through, but has failed to do so.
In a statement this morning, British Airways' parent IAG said under the terms of the purchase agreement, it will also acquire these businesses but with a "significant" price reduction.
Some analysts believe this could be as much as £80 million off the £172.5 million price.
The discount takes into account financial liabilities and losses that IAG is taking on.
IAG confirmed today that bmibaby and bmi regional are not part of its long term plans and will not be integrated into BA.
"IAG will pursue options to exit these businesses and more details will be provided in due course," said its statement.
"The costs associated with exiting these businesses, including the impact of operating them in the short term, are expected to be offset by the price reduction."
IAG said it will update investors about the bmi integration plan at its first quater results on May 11, 2012.
by Bev Fearis
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If there's a still a potential interested buyer out there and there's a deal to be done, I think IAG will do it pretty quickly - they own baby now, they've got their price reduction on the group so maybe can be more realistic than LH about what price they want for baby and regional, and delay makes the transaction more challenging in terms of baby not having their winter program on sale. IAG have said they are already persuing options, and I think WW would be quite happy to show that he's achieved what LH failed to do and helped to save the airline and the jobs. For the sake of everyone at baby (and regional) I hope I'm right.
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As soon as the baby troops stop believing that baby is still up for sale rather than likely to be shut down or stop believing that there exists a buyer for the company that for some reason is just biding their time. Then maybe it'll be difficult to run the airline as people will understandably look for other jobs and will not worry too much about a company that may just be closed down.
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The new bmi Managing Director, Peter Simpson, made this comment today in a message to staff:
"With regards to bmibaby and bmi Regional, the current team will remain responsible for day to day management of the airlines. As both airlines have not been sold prior to completion, under the terms of the purchase agreement, IAG will acquire bmibaby and bmi Regional. IAG has previously stated that both airlines are not part of their long term plans, so they are reviewing several options for bmibaby and bmi Regional and further updates will be made in due course."
Though I am 'insider', the below is my opinion and not fact:
bmi Regional - will go to FlyBe - BA have an interest in that to some degree
bmibaby - Unless Jet2 take it - which as of last week there was NO plans - then the carrier may simply find itself without a buyer. The PR department may spin some comment that it has interested parties but that's come to what, nothing. Whatever happens to bmibaby. it's staff wont be needed at the DH site.
Talking of DH, I expect that to become a hotel / golf facility.
"With regards to bmibaby and bmi Regional, the current team will remain responsible for day to day management of the airlines. As both airlines have not been sold prior to completion, under the terms of the purchase agreement, IAG will acquire bmibaby and bmi Regional. IAG has previously stated that both airlines are not part of their long term plans, so they are reviewing several options for bmibaby and bmi Regional and further updates will be made in due course."
Though I am 'insider', the below is my opinion and not fact:
bmi Regional - will go to FlyBe - BA have an interest in that to some degree
bmibaby - Unless Jet2 take it - which as of last week there was NO plans - then the carrier may simply find itself without a buyer. The PR department may spin some comment that it has interested parties but that's come to what, nothing. Whatever happens to bmibaby. it's staff wont be needed at the DH site.
Talking of DH, I expect that to become a hotel / golf facility.
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BA/BMI MERGER: GROWING ANGER
24/04/2012
The British Airline Pilots’ Association (BALPA) has today said that there is growing anger within pilots at bmi Baby and bmi Regional that their futures are in the balance, that they are being kept in the dark, and that they are not allowed to engage with would-be buyers.
This comes after International Airlines Group (IAG) Chief Executive, Willie Walsh, said he was not confident of finding a buyer for the Baby and Regional parts of the business which they have just acquired from Lufthansa for a bargain price.
Jim McAuslan, BALPA General Secretary, said, ‘In the final days of the drawn-out sale, German-owned Lufthansa may have seen bmi pilots as peripheral, but we would expect UK-based IAG to take a different approach.
‘To be fair to IAG, they have been clear throughout that Baby and Regional do not form part of their long-term plans, but now that they are left holding the baby they should be thinking more creatively and treating pilots as grown-ups.
‘BALPA’s offer to potential buyers of these two companies remains open: we want to help you construct a successful business plan to secure the future of these companies. There is a pool of extraordinary talent there that does not feature on balance sheets, but which will be needed to turn these companies’ futures around. And our suggestion to IAG is: stand up for the UK and see UK pilots as part of the solution.’
The British Airline Pilots’ Association (BALPA) has today said that there is growing anger within pilots at bmi Baby and bmi Regional that their futures are in the balance, that they are being kept in the dark, and that they are not allowed to engage with would-be buyers.
This comes after International Airlines Group (IAG) Chief Executive, Willie Walsh, said he was not confident of finding a buyer for the Baby and Regional parts of the business which they have just acquired from Lufthansa for a bargain price.
Jim McAuslan, BALPA General Secretary, said, ‘In the final days of the drawn-out sale, German-owned Lufthansa may have seen bmi pilots as peripheral, but we would expect UK-based IAG to take a different approach.
‘To be fair to IAG, they have been clear throughout that Baby and Regional do not form part of their long-term plans, but now that they are left holding the baby they should be thinking more creatively and treating pilots as grown-ups.
‘BALPA’s offer to potential buyers of these two companies remains open: we want to help you construct a successful business plan to secure the future of these companies. There is a pool of extraordinary talent there that does not feature on balance sheets, but which will be needed to turn these companies’ futures around. And our suggestion to IAG is: stand up for the UK and see UK pilots as part of the solution.’
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BMI Baby Sale
Anyone else heard the rumors that Jet 2 is interested in taking over BMI Baby stationed at East Midlands Airport simply to acquire there routes.
They are not interested in BMI Baby's fleet of Boeing 737 but may keep the Aircrew...
I must say this is only a Chinese whisper ...but stranger things have happened....
They are not interested in BMI Baby's fleet of Boeing 737 but may keep the Aircrew...
I must say this is only a Chinese whisper ...but stranger things have happened....