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Thanks Cyrano for the info!
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Quote: Leaving bmi as a "stand alone" company within the IAG group rather than integration with BA might well be a workable remedy. It lost millions as a 'stand alone' company. It still lost millions when it was slightly integrated with DLH. I am not suggesting that the present version of bmi carry on business as usual, but a restructured slimmed down bmi operating the contentious routes (ie those that a "competition " case could be made for) could help IAG argue that there is still some form of competition for BA at LHR. Longer term bmi would eventually be totally integrated, maybe over the course of a few years and more gradually than the current integration plan envisages. |
'Ayebmi,
Please be very careful in quoting any individuals on an open forum, if you're an employee you may be in breech of your contract. Not a good time for a disciplinary. The Dr.:= ' Exactly !! Just ask some of your poor colleagues in EDI ! Don't give the company any excuse to haul you in for tea and biccies. |
Quote: "Leaving bmi as a "stand alone" company within the IAG group rather than integration with BA might well be a workable remedy."
There is no reason why BA and BD have to be merged. Obviously it would be a business decision, but unlike BA's take over of Danair, Brymon, BCAL, etc., in the past, this situation is different, it is IAG buying BD, not BA buying BD. Keeping BA and BD separate (while amalgamating back office functions) avoids seniority issues with some categories of staff (e. g. pilots). It would be neccessary to have some price differential/competition on overlap routes particularly domestic to convince the regulatory authorities. CAI and DME are not so critical because there are other carriers on these routes apart from BA and BD. Quote: "I am not suggesting that the present version of bmi carry on business as usual, but a restructured slimmed down bmi operating the contentious routes (ie those that a "competition " case could be made for) could help IAG argue that there is still some form of competition for BA at LHR." Maybe BD would become a domestic feeder airliner for BA, or perhaps a short haul "express" type carrier. Possible route swaps, for example, BA does all the DME flights, 4 B744s/day with first class to mop up the oligarch business. BD gets CAI. Much is possible depending on the business case and happy regulators. |
IAG has already decided that bmi mainline will be integrated into BA. bmi mainline remaining separate was given serious consideration by IAG but BA pilots agreed to offer productivity improvements in exchange for integration. What is unknown is what other BA workgroups will have to deliver in improved productivity.
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Who owns LHR - Berlin slots?
BMI/Lufthansa code-share 3 return flights a day between Heathrow and Tegel.
Who actually owns the slots BMI or LH? If BMI, then IAG will end up with a monopoly on the route, if LH, then presumably they would want the slots back after sale to IAG/BA as LHR would be a serious gap in the new enhanced operation from Brandenburg. 9Apologies if this has been covered before). |
Well I doubt we're gonna know anything until the EC decides on IAG takeover of mainline. Bloomberg reported that IAG have tabled an amended agreement in response to EC concerns, if this involves divestment of slots to maintain competition is it not possible that BMIR would be well placed to pick them up as they are the only firm outside mainline flying those routes?? And if that were to be the case the terms of the granite deal may well be modified. The EC has already put their decision deadline back to the 30th I fear this wait may get longer :( !
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Reuters reporting that IAG have offered concessions, but no detail on what they are.
Will this deal ever be completed? :ugh: Mon Mar 12, 2012 8:10am EDT (Reuters) - British Airways owner IAG has offered concessions to EU antitrust regulators in a bid to get regulatory approval for its takeover of bmi, the British unit of German carrier Lufthansa, the European Commission said on Monday. The Commission, tasked with ensuring a level playing field in the 27-country European Union, did not provide details of the concessions, in line with its usual policy. It extended the deadline for a decision on the deal to March 30 from March 16, the EU executive's website showed. The bmi takeover would boost IAG's share of runway slots at London Heathrow airport to about 52 percent from 43.1 percent, allowing it to launch lucrative long-haul routes. IAG also declined to give details of the concessions. The European Commission typically requires airlines to cede slots and offer rivals access to their frequent flyer programmes in return for clearing mergers and acquisitions in the sector. Lufthansa promised to offer slots to allow new entrants to operate flights on four routes singled out by the regulator, during its 2009 takeover of SN Brussels Airlines. Other concessions related to its code-share agreements and frequent flyer programmes. Rival and failed bmi bidder Virgin Atlantic has urged antitrust regulators to veto the deal, saying it would harm competition and push up prices. |
So IAG have proposed remedies to concerns about the purchase of bmi mainly due to domestic competition I would assume, and this has pushed the announcement back to the 30th. Does anyone else not think this could play out quite nicely for bmi regional as well as bmi mainline? IAG would be best placed to say allow regional to continue to fly the slots it operates out of heathrow at the moment to say EDI, MAN and ABZ. This would vastly improve prospect for all bmi regional pilots and employees and IAG gets the deal through. Bmi mainline guys would not be affected because we currently don't crew these slots. Dare I say it there could be a feed to BA or a code share and sales via their channels too. More people would stand to keep their jobs which should be the priority over people maybe having to pay £5 more on their ticket when so many choose to fly on easy or ryanair anyhow. If I were granite I would not be hurrying this deal but negotiation to the 12th hour on the 30th. The wait is very very hard though
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This seems like a fairly normal timescale for a deal of this size, to be honest.
IAG has offered concessions - slot handbacks etc. The Commission will now be "market testing" them, i.e. going out talking to other affected airlines and other parties, and asking them "does this seem reasonable and will it overcome the reduction in competition?" In some cases they'll be asking "Is the proposed package of concessions enough to get you to consider entering one or more of these routes?" The IAG concessions were only sent to the Commission on Friday so will only be going out from the Commission in the next couple of days, I'd imagine, and it's reasonable to give the market-test participants a week or two to assess them, especially since at least one or two of those participants are likely to have a bank holiday weekend coming up...:hmm: |
Would I be right to assume that the EU's remit extends only to inter European flights & flights within a single European country? Eg the Uk.
Where do BA/bmi actually compete in Europe other than MAN EDI ABZ That is to say on routes where they are the only carriers? I could understand the NI office asking for assurances over LHR access from the city airport. I guess they could always give some slots for bmibaby to fly into LHR from BHD and code share with Virgin under a new owner? |
No, the EC are potentially interested in any route where there is an impact on competition in the EU, so they might have a view about Cairo, Moscow and any other ex LHR non-EU routes that they both operate. However more likely to be worried about routes where there is currently no other competition, so Egyptair and Aeroflot/Transaero should allow those to go through without remedies. ABZ looks the most problematic...EDI has competition albeit not to LHR, as does MAN with the train.
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ABZ looks the most problematic...EDI has competition albeit not to LHR |
Originally Posted by le grand fromage
(Post 7079204)
ABZ looks the most problematic...EDI has competition albeit not to LHR, as does MAN with the train.
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Anyone else find it ironic that the EC regulator seems to be concerned about domestic connectivity, when the UK government has actively encouraged UK passengers to connect via the continent thanks to APD!
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BA has also operated LHR-NCL for years with no competition.
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I have a flight booked later in the year with Brussels Airlines from Newcastle to Budapest. The Newcastle to Brussels sector is operated by BMI Regional for Brussels Airlines. What do you feel will be the outcome of this.
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Flyer 70. When you arrive at the baggage carrousel, assuming always that you do, there might be a possibility that the wheels have fallen off your suitcase assuming you had the old one repaired. Get a grip and waste your breath elsewhere!
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Flyer 70. When you arrive at the baggage carrousel, assuming always that you do, there might be a possibility that the wheels have fallen off your suitcase assuming you had the old one repaired. Get a grip and waste your breath elsewhere! |
I have to say that the post before was singularly pointless, but perhaps a more civil reply could have countered that.
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