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bmi sell some slots to IAG
on IAG's website today...
London Heathrow Slot Purchasehttp://media.corporate-ir.net/media_...ges/spacer.gifhttp://media.corporate-ir.net/media_...ges/spacer.gifRNS Number : 8080O International Cons Airlines Group 23 September 2011 LONDON HEATHROW SLOT PURCHASE IAG has approved the acquisition by British Airways of six daily slot pairs at London Heathrow from bmi British Midland International. The slots will be used by British Airways from late October 2011 with the airline looking to expand both its longhaul and shorthaul network at the airport. ends |
You must understand that "profit" and "loss" are very much a fiction depending on how the accountants choose to do the books. Identifying such opportunities are, I am afraid, part of how I spend my day.
For example, let us say that there are higher taxes on profits in Britain than in Germany. BMI may make a profit, which is then taxed at say 26%, and Lufty get the money left over after this. However if Lufty hit BMI with a "management charge" of £1m a day for the year, BMI make nothing and Lufty make more - which then might only be taxed at 13% in Germany. This is an (over) simplistic example, but developing it is the sort of thing that an officeful of accountants and tax advisors spend their day working out. Otherwise you don't need them. How are Lufthansa (Cayman Islands) Ltd, or Lufthansa (Lichtenstein) AG doing ? Profit is opinion. Cash Flow is fact. |
latest bmi rumour...
latest gossip is that the aircraft (airbus's) free'd up from the slot sale will go to bmi baby to replace some 737's that arent having their leases renewed.
crewed by mainline pilots as retraining baby pilots is too expensive given both company's financial position. embraers to remain in place at heathrow to help reduce the losses, as opposed to removing them and having airbuses 30% full. |
Originally Posted by embraerFObmi
(Post 6714682)
Embraers to remain in place at Heathrow to help reduce the losses, as opposed to removing them and having airbuses 30% full.
If you say BA have their good connecting feed, Star Alliance must deliver almost as much through all their presence at Heathrow. |
Because some aussie smart talker rebranded the airline BMI and proudly announced it didn't stand for anything! A real eye catcher for the customers. Then our last CEO ran the service down, losing customers for the future whilst his big chief got the last penny out before he made his exit.
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That rumour about airbus to baby is simply not true. The sale of some slots to BA is a worry as it hints at a breakup of the bmi mainline although I feel a wider deal is in the offing over the coming weeks. I'm hearing that Virgin will be taking the mainline bmi operation and joining the Star Alliance with BA getting some more slots. Who knows really except those at the very top of the relevant companies and Morgan Stanley, it's all conjecture.
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Virgin Atlantic Will Join an Alliance Soon, Says Richard Branson
Virgin Atlantic Airways, the last big trans-Atlantic carrier to remain independent of the three airline alliances that define the industry, will join one in the near future, Virgin founder Richard Branson tells Forbes. “There is likely to be an announcement of an alliance coming very soon,” he says. Virgin has stayed out of the alliance system until now, preferring to write bilateral codesharing agreements with other airlines. Branson declined to say which alliance Virgin would join, but it is unlikely to be OneWorld, the group that includes Virgin arch-competitor British Airways. That leaves Star Alliance, anchored by United Continental Holdings and Lufthansa, or SkyTeam, anchored by Delta Air Lines and Air France-KLM, as possibilities. Of those two, Virgin Atlantic’s operations are more closely aligned with Star Alliance: the airline is 49% owned by Star Alliance carrier Singapore Airlines, has expressed interest in buying BMI from Lufthansa, and includes nine Star Alliance members among its partners. In late 2010, Virgin Atlantic hired Deutsche Bank to advise it on merger possibilities. Sky News reported that Delta had hired Goldman Sachs to help it woo Virgin, but that attempt, along with efforts by some other airlines, appears to have fizzled. Yesterday Virgin Atlantic confirmed that it was interested in merging with BMI, another airline with a hub at Heathrow. A Virgin Atlantic spokeswoman declined to comment on the airline’s alliance talks, writing in a statement that “Deutsche Bank is looking at all our options, which includes the world of alliances. We are one of the very last independent carriers with an unrivaled position in the industry which is why we are carrying out this strategic review.” Virgin Atlantic was one of four airlines allowed to fly between London’s Heathrow airport and the United States until the EU-US Open Skies agreement opened those routes to competition in 2008. Its market position has been further challenged by a new round of consolidation in the airline industry–particularly a 2010 agreement between American Airlines, British Airways and Iberia that coordinates those carriers’ trans-Atlantic service. Membership in an alliance could feed traffic into Virgin’s network and give it a boost with business travelers who try to keep their frequent-flier earnings consolidated within an alliance to enjoy perks like free upgrades to first class and access to departure lounges. |
embraerFObmi - There will be no airbus' freed up due to the slot sale. The solds in question are currently leased to other airlines therefore the sale will not affect bmi's timetable or aircraft utilisation.
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bmi held 11% of all LHR slots didn't they? Does anyone know what that figure has dropped to in light of today's sale?
Also, they have several slot pairs out on lease to other carriers don't they? Are they part of the 11% or not included? Am I right in thinking 6 slot pairs going = 3 less routes? |
DTVAirport, read the post before your own; it answers all your questions.
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Have heard from a couple of independent sources that Mainline is being made ready for a sale.
Front runner is Singapore/VS, from what I have heard. That at least would give a certain level of security for some staff. |
Front runner is Singapore/VS, from what I have heard. That at least would give a certain level of security for some staff. I've been wrong before, of course... but :} |
Are Virgin in a position for such buy? or is this been forced on them to join Star?
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Never say never, but I would be amazed if VS buy BD mainline.
SQ have wanted out of VS for years so they are not going to contribute any capital. Virgin Group rarely acquire businesses/merge by offering cash which is what LH will want to dispose of BD. Virgin contribute assets in return for shares or licence their brand. And, most importantly, I doubt Virgin has the financial muscle to absorb the losses and turn BD around. An IAG deal is still a possibility. The 6 slot pair deal has probably been negotiated for months before the recent announcement by LH that BD could be sold. |
embraerFObmi - There will be no airbus' freed up due to the slot sale. The solds in question are currently leased to other airlines therefore the sale will not affect bmi's timetable or aircraft utilisation. |
The slot pairs will bring in some useful money for assists that we unlikely to have been used in the future, the real prize to be had here is VS & star, I would not rule out a partial sale, how the numbers might add up I have now idea, but I suspect some equity swap involving SQ/VS/LH might come into play, but let's be clear here the is nothing wrong at all with the bmi product or it's employee's in many ways it's far superior to the BA product, the problem is the bmi brand is confused by the various product offering of regional, baby and mainline it's self and is probably beyond redemption.
Virgin brand is much stronger, but how it would play in the iffy Arab countries that bmi fly to is another question!!! As for baby who knows? But I doubt it will be shut down, more likely a trade sale,Monarch SMB? |
bmi sale
I am new to this forum, and its been intresting to read what everyone has to say about what LH wonts to do with the BMI group.
I personnally belive that the slots we have just sold to BA are the ex MXP route and like i read earlier it was probably done a few months ago when LH decided to pull off the route and the timing is just coincedential. I have looked at the new winter timetable through the bmi website and it looks like they dont have any silly slot savers at the moment ie manchester 4 a day, dublin 4 a day all at good times. If i could see into a crystal ball i would see mainline getting into the VS group ie into Virgin Atlantic or as a seperate name like Virgin UK. Regional will go to Flybe. Baby, umm this could be intresting, reading other peoples thoughts it could go a number of ways, as it has a strong loyal passengers it could make a go of itself of if an airline went for it i would go for monarch as were baby fly from there are not a lot of overlapping MON services. Thanks for reading. BMIORVS :D |
As for baby who knows? But I doubt it will be shut down, more likely a trade sale,Monarch SMB? I realise you work in a senior role at WW, but you are going to have to make a pitch for Baby to convince me that it is a realistic proposal for sale. |
Flypuppy
Bmibaby is probably the strongest loco brand across a huge swath of central England, it is the brand that has value.
Customers don't buy into property or aircraft, they buy/ trust the brand and what they feel it stands for, to start from scratch to build this cost millions, now if your Jet2 or Easy or FR it's worthless because you would bin it, but for others wanting to move into to the Loco market or the UK market then there is value for sure. I have seen nothing that suggests it's anything but business as normal for baby, that's not to say that can't change but there is a positive buzz about the place, loads are good yields are good, the feeling is that one way or another we will be around for a few years yet. The ball is in play now and the next few weeks will be interesting to say the least, but I think all agree it's time to move on what ever the outcome this is no way for our loyal staff to live |
crewed by mainline pilots as retraining baby pilots is too expensive given both company's financial position. Strikes me there is a deal to be done somewhere here.... :E |
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