DB6

'Negative consideration'? What does that pish mean?

renfrew

Not pish.
It means they could actually be paid to take on all or part BMI Baby.

Airclues

"Negative Consideration". I'm not an expert, but I believe that it was defined by Justice Lush in 1875 during the case of Currie vs Mish.

Dave

sunday8pm

Does 'negative consideration' include the existing bookings on Baby routes for this summer schedule? I can envisage Jet2 taking over routes and crew, with BMIbaby being no more as of Winter 12/13.

Granite City Express

Why bother with the hassle of TUPEing staff over and bringing the emotional baggage that comes with it, when all they need do is wait and when no buyer is found cherry pick routes and staff at a much lower cost.

IAG are not likely to give anyone a dowry in the same way Lufthansa may have done.

thebayflyer

I can see the logic in Granites comment. Harsh but so very true.

IB4138

Are the Baby 737s owned by Mainline and leased to Baby?

If so the Jet2 rumour could make some sense.

That would leave IAG with just the 12 x 733s and 2 X 735s to dispose of. That would bring some cash back into the coffers, even if they are sold for breaking.

Say again s l o w l y

All bmi Baby aircraft are leased and not from Mainline.

VC10man

I think Jet2 should take the Baby 737s. I would bring their fleet age down a little.

Flightrider

The bmibaby aircraft are all leased but are leased via British Midland Airways Limited which in turn has subleased them to bmibaby Limited. It is effectively a form of parent company guarantee over the leases to the likes of ILFC who are ultimate owners of the aircraft.

allan1987

If Jet2 buys bmibaby I’m guess some of bmibaby planes might return to leasing company, and the 2 737-500 will be returned to leasing company as Jet2 don’t use that type of plane.

Not sure will BA have to pay Jet2 a sum of money to take bmibaby off them.

Also I wonder if jet2 would then move from Belfast International Airport
to Belfast City airport where Bmibaby is



Jet2’s and Bmibaby airplanes on http://www.planespotters.net

Jet2's 737-300's
http://www.planespotters.net/Product...&fleetStatus=1

Bmi Baby's 737-300's
Image Verification

LBIA

If Jet2 took on bmi baby they would have to remain at Belfast International so that they can continue to operate the Boeing 737-300QC on the 2x over night royal mail runs to East Midlands.

Artie Fufkin

Without saying anything I shouldn't, the Jet2 management briefing over the winter left us in absolutely no doubt about Jet2's view of baby.

Not impossible of course, but highly unlikely.

MKY661

This could be interesting

I think so too. If they dont get any then how will Jet2 operate the baby routes. Also Jet2 like their 737-300's and they dont make them anymore.

BAladdy

Well it wouldn't be the first time. BA payed Flybe back in 2007 to take BA Connect of there hands.

bmibaby.com

Didn't Jet2 deny their interest in buying bmibaby back in February? I'm pretty sure there was something in the local press and I can't see the situation changing unless IAG have offered a very attractive deal.

I'm surprised IAG haven't tried to coerce flybe into taking on baby or regional in exchange for increasing their shareholding in the company. I think all of us are just hoping that we don't get wound down at this stage because there's a different rumour coming out every day.

Mr @ Spotty M

Why would Jet2 buy them.
In 6 months time they just step in and start operating on the routes they want.
Sorry, but l can not see it happening as they would be insane in doing so.
I have nothing against BMI Baby or regional, but the main problem l see for both companies in why a lack of interest is being shown, is the pension deficit that you would take on.
Company pension schemes is the biggest problem for many companies at the moment, without that issue many airlines would be in the black and not in the red.

Yellow Sun

Both companies run Defined Contribution schemes not Defined Benefit schemes. There isn't deficit to service.

YS

Artie Fufkin

If the worst does happen at baby, one crumb of comfort should be that Jet2 has huge expansion plans for East Midlands. Furthermore, rumours of a new Birmingham base are reaching fever pitch.

They'll need to recruit both Captains and FOs. Anyone who is type rated and based locally are going to be at the very front of the recruitment queue (along with the ex-military chaps, of course)

I was up in Glasgow recently operating a flight and spoke to one of the cabin crew who said that the base was full of ex-Globespan staff (pilots, cabin crew, ground staff). We have the old Globespan crew room and apparently if you look at the faces in there, its almost as if Globespan never went under!

FANS

Baby is widely viewed as a financial dog and hence LH has not been able to sell it.

As I understand the deal with IAG, BA gets a price reduction if baby and regional have not been sold. This price reduction probably equates to the cost of closing these businesses.

This could be passed onto e.g. Jet 2, in the form of negative consideration to take it off their hands and IAG/BA avoids the negative publicity of closing down the business.

I'm sure no airline is interested in buying it for $$, but to get paid to take it off IAG's hands could be a different matter.