Where is the evidence that the deal is done then? Newspaper reports, internet, I suspect it hasn't...

stop, stop, stop
 

I guess that beats trying to find an empty field in France and waiting for a Lysander to pick you up!


You're showing your age!:)

(Asking wont kill you)
Nope but a well placed sentry just might as we try to scale the wire!!!!!!!!!!!!!!

You can just see the first headline

'Lufthansa to move BMI Operations and Management to Frankfurt in cost cutting measures to preserve Uk jobs '

BFS Charters
 

Quote:
Are they operating at the moment? because they are not showing on the boards, or are they opertaing as a non BD flight number?

Patience Gate 22
Try next week and they'll start appearing
Add a couple of Lourdes and Monastir flts to that charter
program aswell

The charter stuff is all very interesting, but has the deal been done?

If not, there won't be charted or scheduled flights for much longer I fear ...

FEAR NOT ! BHD LHR is doing good !!

flapsfullretard
 

I doubt that its in that state (wont be any flights......), i have been doing med haul for the last 2 months and there has barely been an empty seat....and those seats arent cheap!


If you're implying the mid-haul routes are doing well because the flights are full, it's not necessarily the case. There are times, of course, such as Ramadan, Eid, school holidays when the seats can be relatively expensive. But the rest of the time the Y class seats are price sensitive, especially on Cairo and Tel Aviv. The previous carrier found it difficult to make money in this market because it was 'knobbled' by BA overheads among other things. Cairo and Tel Aviv may be making some money by virtue of the fact that the larger airframe can accommodate freight and relatively large numbers of Y class passengers.

Competition from other carriers, eg LH, is always a factor on these routes. Although mid-haul may be contributing positively, the remainder of the network may not be doing so well, especially in the winter when the cash-flow from charters is diminished, and the overall result may still be in negative territory.

The previous incumbent's policy was to charge extremely high prices for its seats, especially J class, but still found that it was only a couple of niche routes, eg Baku, that supported the remainder of the network.

Whilst, what you say is true tlv,cai are price sensitive!
other routes such as fna lowest fare £510 rtn gyd $619 rtn and others such as fru £359,ika £390,evn £389 all have quite high yielding fares in comparison to lets say jfk £73 rtn,ord £106,mia £118,sfo £172 (all vs)
I would say bmi are in a better position to ride out this present downturn than VS,BA and others who rely heavily on the good old us of a routes (which now they share with everyone ex lhr):(

roy2711
 

You may well be right, Sir. Mid-haul certainly has better yields if you can control costs, as I've already said.

What I find difficult to reconcile is the fact that most of the mid-haul routes are well served by LH, to name but a few.

As for riding out the present difficulties. Usually the one with the deepest pockets survives.

And maybe not to the same extent, but also some roues served by OS too.

I suppose it depends though on whether there is overcapacity by both LH and BD having a prescence or whether running the two services combined (LH to Germany with Connections and BD to the UK with connections both with different schedules) merely caters to the demand?

queenvic,

Don't suppose I could ask where you got that info?

Deal is done and announcement just made.

The direct obligation for Lufthansa to acquire bmi has been annulled by Lufthansa paying £175m to cancel it. A new UK holding company, presently 35% owned by Lufthansa, will then acquire bmi for £48m. Formal announcement has just gone out.

£175m going in as the required cash injection to satisfy financial fitness going forward.

Re earlier posts - AMS is supposedly being stopped from the end of the summer. Nothing heard specifically about PMI and VCE.

35%!! So 65% owned by whom? Anybody seen SRB with a fountain pen in his hand lately?

Here's the details peeps...

22 Jun 2009 - 13:06
FRANKFURT, June 22 (Reuters) - Deutsche Lufthansa AG : * Says Sir Michael Bishop and Lufthansa have reached an out-of-court settlement * Says Sir Michael Bishop agrees that specific performance of the put option
will not be available and consequently Deutsche Lufthansa will not be
required to acquire the shares * Says it will pay consideration of GBP 175 million for the cancellation of the
put option on BMI * Says with effect from 1 July 2009, LHBD Holding Limited will acquire BBW's entire stake of 50 per cent plus one share in BMI for approximately GBP 48 million * Says initially, BMI will remain UK owned * Says after obtaining the necessary traffic rights, Lufthansa expects to be able to acquire 100 per cent of LHBD

Best regards,

The Count

So the old man blinked first!! I think Lufty have just bagged themselves a bit of a bargain!

Am I reading it right that LH got bmi for a bargain £220mil?

Seems a bit strange - that figure isn't too far off the numbers mentioned when this whole 'put' thing first came up last year. As Jerseyman says - who owns the 65%? Sir MB perhaps?

We have all forgot about the 20pct sas have, what is happening with that?

I can see SAS being very unhappy today.

The deal itself gave SMB a lump of money and a very much reduced price for the BD stake itself. The way the deal is structured (according to press reports) Lufthansa paid a price for the actual shares which gives BD a less than £100 million value.

Lufthansa wins BMI sale battle with £115m to spare - Business News, Business - The Independent

As BD wasn't a publicly traded share, any future purchase would be negotiated on the basis of that last trade in shares which would value their 20% at less than £20 million. It remails to see if SAS get involved here with their lawyers screaming that the deal has damaged their shareholding value, unless they are a 'sleeping partner' on the deal.