Like so many others I choked when I heard the news and then burst out laughing when I read todays papers about VS seeking some sort of deal with LH. I wonder why LH would be interested in VS if SIA still haven't managed to flog their share in Sir Bearded Jumpers airline? Answers in no more than three words please.

On a serious note, I hope that the BD staff all manage to get through the re-organisation and I hope that they will emerge a better and stronger airline. Look at what LH have done to Swiss. LH will do the same thing to BMI and I for one think that the BMI's future is in excellent hands.

bmi regional & baby
 

So will LH keep Regional? and if so what about Aberdeen? could it run with out the steady hands of SA,BH,PY& JB/LB who have made it what it is to day?

As for baby, what is there to sell? the brand is good in the midlands and South Wales, but who would buy it and keep the name? not Easy, Ryanair or Jet2, Globespam could do with a new ID, but baby wont mean much in Scotland, Flybe might as part of a deal in taking Regional out of the market and it would give them EMA as base.

So either LH will do something with their own LoCo brand, shut it down or give it to SMB as a leaving present (better than a clock, but a clock would at least keep time)

The winners could be the EMA engineers, EMA could become a major service centre for LH Teck

Good luck to all (your not all doomed)

If WW makes money in its own right, I think LH will keep it, no point handing over a profitable operation to rivals, is there?

I think WW at MAN could become part of mainline though. I think there is potential out of MAN to offer a small, but profitable long haul network and expand the short haul network, using it as a method of feeding the long hauls, but also to cement *A in the North of England and strengthen the position of LH's hubs for connections to more exotic/far flung regions of the world which would never be served from MAN directly.

LHR and MAN should be seen as LH territory now, will LH allow QR, EK and EY the easy ride they have seemingly enjoyed thus far to continue?

Brian.

Keeping / Selling bmibaby
 

I don't know the profit numbers for bmibaby - and I suspect that even if I got hold of the audited numbers, the accounting policies in place could easily be used to move profit recognition between the parent bmi group, bmibaby and any other subsidiaries pretty much at will. It's not a plc, so should not be particularly difficult for a competent finance director to achieve this. One therefore probably needs to be an insider to get a real picture of bmibaby's profitability as distinct from the bmi parent group.

Having said all that, there are potential reasons for LH wanting to sell on bmibaby - pretty much the same as BA declining to purchase BMed a while ago.

bmibaby has a fleet of 20 737s, most of which I believe are owned rather than leased, average age about 13 years. The resale market right now ain't great, but this represents a chunky amount of cash tied up in metal. Further, any company needs some capital to keep the business running - pay the fuel and wages, etc....

Suppose (as an example) this represents 100 mn pounds of capital, and that bmibaby currently makes profit of 1 mn per year. Suppose that LH management reckon they can tweak this to become 2.5 mn per year. This means that for every pound invested in the airline, at best you get an annual return of 2.5% - seems pretty lousy to me.

Instead, sell the subsidiary (or parts which don't give a good return on capital employed), free up the capital and use it elsewhere, as cash deposit in the bank (rainy day reserves in case the credit crunch turns nasty), to fund another part of the business - e.g. Austrian or Scandinavian

My parents have just returned from Chicago, And the flight BD 705/6 was full out and back.

So the loads are sufficient.

Will the 'German' invasion be the end of Sir Michael & Nigel Turner??

Can't see them in the new outfit.

Man Long Haul
 

Byalphaindia - the Chicago flights are relatively full all the time, but this is irrelevant now. LH have insisted the MAN long haul goes before they complete the deal. This will be formally announced on 5th NOV - union reps have been informed already. Very Very Sad

Bums on seats mean nothing, it is yield that is the key.

Why would the new German owners wish to close these routes down? I do not comprehend.

LH have always seen themselves as leaning towards the 'Business' end of the market and have previously voiced disapproval at our operations to the Caribbean, which they see as predominantly 'charter' destinations, therefore putting downward pressure on the margins. Unfortunately these routes are out of MAN and the North American routes will be the unsuspecting casualties in all this. Sir M has always tried to treat his staff fairly (wish I could say the same about his minions!) and I'm sure he will try to minimise the impact. I can only wish everyone the easiest possible transition.

DJ6
 

Baby's fleet are leased from a variety of lessors and are on fixed length contracts (believe the -500s have just been extended) -can't think of any that are owned. Am sure somebody could confirm but I believe the only a/c in the group that are owned are the Regional Jungle-jets (barring the last two into the fleet with the T/reversers fitted)

Du hast mir nicht sehen,richtig.....................

Summer charters
 

Will BMI still do the summer charters, to Spain etc.. from ABZ and the like???

Stu..

I have heard a lot of mischief making goes on at CWL especially where Baby is concerned. I very much doubt that lay offs at Baby came from any official source. There is, as ever, loads of rumour and speculation following the LH deal (which everyone has known has been coming for at least 12 months !) and the current business climate. There are, unfortunately, a lot of unscrupulous folk out there that use this type of situation to cause distress and upset to others and destablise other companies for there own ends or perverse enjoyment. All Baby staff, unlike certain airlines I could mention, are on permanent Ts & Cs and would require more than one weeks notice unless they had been naughty !

I'm actually quite new to this, and yesterday saw a posting regarding Longhaul out of manchester and the Union reps being sent to outstations on Wednesday to break the news to crew.

Why was this post so swiftly removed?

I wish that those of you willing Longhaul at Manchester to close would just back off and leave us, Most of us moved our lives from London to do this and were so proud of what we did as we had a product we believed in.

We all have families, Mortgages and lives and if the rumors are correct then next week we will be unemployed and will be left to deal with the fallout, probably without any support from our Management in Manchester, but thats nothing new. Just let us hear it from the Horses mouth first and please stop the scaremongering even if it is just for the weekend so we may sleep a little easier and try to stop the worrying until it happens.

great 1st post haggis :sad:

Non-pilot speaking

Hermano LoboNo surprise at all. Over the last 20 years, SMB has made it quite clear that he was going to prevent VS from getting their hands on BD. He was always going to sell to LH. He has been very smart in the way that he has kept folks guessing until the last minute.

MAVERICK 1
Yes indeed. By selling now, SMB retained control of the event. After 1st Dec - he would have been powerless and SMB has always retained power.

SMB is quoted from The Daily Telegraph
Ah well, that's what we call Capitalism. Exactly what SMB has been doing for the past 44 years. He really knows his PR stuff and he is playing this out very well for himself.

I totally agree with you Haggis on this as I have been there and it is not nice when one of your customers rings up and tells you you will be loosing your job before the management have said anything

I for one hope all goes well for the Manchester crowd

Ian

remember seeing SMB do a talk just after Laker had gone bust always respected him after that and a very good speaker to boot

Ian