Go Back  PPRuNe Forums > Flight Deck Forums > Rumours & News
Reload this Page >

BA and JET2 secret meeting in Leeds

Rumours & News Reporting Points that may affect our jobs or lives as professional pilots. Also, items that may be of interest to professional pilots.

BA and JET2 secret meeting in Leeds

Old 29th Aug 2023, 19:15
  #21 (permalink)  
 
Join Date: Apr 2016
Location: 0ft
Posts: 193
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by Asturias56
"They were too busy with meetings last week to go offsite."

that's the lower echelons of management

Something like flogging off Gatwick would be middle management at least

Top management just count their bonus package

You have no idea how the company is run then. Because I can assure you something this profile will be discussed at the very tops. Not just "middle management".
LBAflyer22 is offline  
Old 29th Aug 2023, 22:02
  #22 (permalink)  
 
Join Date: Aug 2023
Location: Uk
Posts: 1
Likes: 0
Received 0 Likes on 0 Posts
In November 2022 the Financial Times ran a story that no body in the aviation world seemed to pick up on it was only a small piece

The FT story said that IAG the owners of BA was looking to acquire a low cost carrier in the Uk Jet2 and easy jet were both named as potential targets for acquisition IAG believe they need a low cost carrier to help with growth and better fight the likes of Ryan air

the story percificly named jet2 as urgently needing to get into Gatwick the story went on to say BA would leave Gatwick short haul to jet2 if a accusation went through

It seems to me it could be BA trying to buy jet2 and not the other way around
TUIblue is offline  
Old 30th Aug 2023, 01:16
  #23 (permalink)  
Paxing All Over The World
 
Join Date: May 2001
Location: Hertfordshire, UK.
Age: 67
Posts: 10,101
Received 57 Likes on 47 Posts
A legacy company buying up a low cost, or newer, company only works if the legacy Board leave the new company to do well what they have done well. History tells us that when an old company buy a new one - they start to meddle with it. This is not just in the airline world, I saw a big bank buy smaller bank as they were making good money. A few years later it was a mess and old company lost a lot of money,
PAXboy is offline  
Old 30th Aug 2023, 11:18
  #24 (permalink)  
 
Join Date: Oct 2018
Location: Ferrara
Posts: 8,178
Received 319 Likes on 185 Posts
"You have no idea how the company is run then. Because I can assure you something this profile will be discussed at the very tops. "

Be the first time the board of BA have really discussed LGW at all - never mind their masters at IAG


Asturias56 is offline  
Old 30th Aug 2023, 17:56
  #25 (permalink)  
 
Join Date: Mar 2003
Location: Stansted
Posts: 210
Likes: 0
Received 0 Likes on 0 Posts
Watch out. Most companies who want to try and compete with Ryanair, (if that is the intention) first move is find an ex FR manager or headhunt one from FR.

EasyJet found out the hard way it’s doesn’t always pay off. Mind you that person was the biggest BALPA recruiting sergeant for EZY my mate tells me!

If IAG went down that route Jet2 pilots can kiss goodbye to 2 sector days and sitting at home doing 2 flights a month over winter.
Say Mach Number is offline  
Old 30th Aug 2023, 21:25
  #26 (permalink)  
 
Join Date: Jan 2006
Location: Earth
Posts: 1,161
Likes: 0
Received 4 Likes on 2 Posts
Originally Posted by Say Mach Number
EasyJet found out the hard way it’s doesn’t always pay off. Mind you that person was the biggest BALPA recruiting sergeant for EZY my mate tells me!
Yep, membership pretty much went to 100% and we didn’t lose our Ts&Cs and nobody lost their job if they didn’t want too. We don’t fly to EASA FTLs either, kept the tried and trusted ones and have protections in place.
Stone Cold II is offline  
Old 30th Aug 2023, 23:01
  #27 (permalink)  
 
Join Date: Aug 2015
Location: Sunnydale
Posts: 251
Received 21 Likes on 14 Posts
Originally Posted by Say Mach Number
Watch out. Most companies who want to try and compete with Ryanair, (if that is the intention) first move is find an ex FR manager or headhunt one from FR.

EasyJet found out the hard way it’s doesn’t always pay off. Mind you that person was the biggest BALPA recruiting sergeant for EZY my mate tells me!

If IAG went down that route Jet2 pilots can kiss goodbye to 2 sector days and sitting at home doing 2 flights a month over winter.
Jet2 do not try to compete with Ryanair. Yes they started off low cost but they have moved so far away from that model.
back to Boeing is online now  
Old 31st Aug 2023, 21:57
  #28 (permalink)  
 
Join Date: Mar 2003
Location: Stansted
Posts: 210
Likes: 0
Received 0 Likes on 0 Posts
Back to Boeing I was going by TUIblues comments that IAG wanted a low cost airline which IAG think Jet2 is according to below.

“The FT story said that IAG the owners of BA was looking to acquire a low cost carrier in the Uk Jet2 and easy jet were both named as potential targets for acquisition IAG believe they need a low cost carrier to help with growth and better fight the likes of Ryan air”

I’m not sure what Jet2 thinks it is but I’m pretty sure most people think of it as a low cost carrier.
Say Mach Number is offline  
Old 1st Sep 2023, 15:39
  #29 (permalink)  
 
Join Date: Apr 2000
Location: Under the Bovingdon hold
Posts: 49
Likes: 0
Received 0 Likes on 0 Posts
Slots?

A little birdie tells me that negotiations were over slot leases.
Aerostar6 is offline  
Old 1st Sep 2023, 15:45
  #30 (permalink)  
 
Join Date: Apr 2003
Location: Northumberland
Posts: 8,355
Received 55 Likes on 37 Posts
I’m not sure what Jet2 thinks it is but I’m pretty sure most people think of it as a low cost carrier.
Jet2 are more akin to TUI than EZY or FR
SWBKCB is online now  
Old 3rd Sep 2023, 23:47
  #31 (permalink)  
 
Join Date: Sep 2015
Location: Europe
Posts: 93
Likes: 0
Received 0 Likes on 0 Posts
Except Jet2 are just a UK low fare airline masquerading as a holiday company (like EZY) and not a big international travel organisation with multiple airlines, cruise ships, hotels and travel shops… small fry comparatively!
AirUK is offline  
Old 4th Sep 2023, 00:11
  #32 (permalink)  
 
Join Date: Apr 2003
Location: Midlands
Posts: 435
Received 0 Likes on 0 Posts
.....small fry comparatively!
Yet VERY successful!
jethro15 is online now  
Old 4th Sep 2023, 00:15
  #33 (permalink)  
 
Join Date: Sep 2001
Location: Blighty
Posts: 788
Received 87 Likes on 22 Posts
Originally Posted by TUIblue

the story percificly named jet2 as urgently needing to get into Gatwick the story went on to say BA would leave Gatwick short haul to jet2 if a accusation went through

It seems to me it could be BA trying to buy jet2 and not the other way around
*percificly. 😁 😁 😁 😁 😁 😁
HOVIS is offline  
Old 4th Sep 2023, 06:51
  #34 (permalink)  
Alba Gu Brath
 
Join Date: Oct 2000
Location: Merseyside
Age: 55
Posts: 738
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by AirUK
Except Jet2 are just a UK low fare airline masquerading as a holiday company (like EZY) and not a big international travel organisation with multiple airlines, cruise ships, hotels and travel shops… small fry comparatively!
Make your mind up. Two years ago you said “Jet2 are just an airline and an online travel agency.” Given the U.K. operation has almost twice as many aircraft as TUI and ATOL licensed for more passengers not sure how you quantify this as ‘small fry’. TUI U.K. would not exist today if the previous U.K. company had not been bought out by the German parent.
Big Tudor is offline  
Old 4th Sep 2023, 10:06
  #35 (permalink)  
 
Join Date: Apr 2004
Location: UK
Posts: 446
Likes: 0
Received 2 Likes on 1 Post
Jet2 are more akin to TUI than EZY or FR
Absolutely! and - if rumours are to be believed (rumours I say again lol), allegedly TUI are attempting to address the J2 'threat' in the U.K., by looking to use less of the current ACMI lease-ins, in favour of a new seasonal operation with (polish?) flight deck/cabin, and improve profits. I'd guess that if true, they are likely looking at doing ACMI/ad-hoc charter work elsewhere maybe at low season times?. Or maybe they already have a 'one-foot-in-the-door' exploratory talks with a new operation setting up that they want to use?. Either way, it shows that the J2 business model works, and they're (TUI) looking to address with their own 'lower' cost option to meet the challenges J2 present them, now and in the future?.
First.officer is offline  
Old 4th Sep 2023, 22:52
  #36 (permalink)  
 
Join Date: Apr 2003
Location: in a figment of my imagination
Posts: 130
Likes: 0
Received 0 Likes on 0 Posts
It’s the convention that the buyer visits the seller.

Maybe IAG visited to have a quick look over the books to see if J2 were worth buying🤷‍♂️
Kakpipe Cosmonaut is offline  
Old 5th Sep 2023, 09:53
  #37 (permalink)  
 
Join Date: Apr 2002
Location: Luton
Posts: 156
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by AirUK
Except Jet2 are just a UK low fare airline masquerading as a holiday company (like EZY) and not a big international travel organisation with multiple airlines, cruise ships, hotels and travel shops… small fry comparatively!
add profitable to that list of differences
G-AZUK is offline  
Old 5th Sep 2023, 11:57
  #38 (permalink)  
 
Join Date: Nov 2000
Location: UK
Age: 69
Posts: 1,395
Received 40 Likes on 22 Posts
Originally Posted by G-AZUK
add profitable to that list of differences
You can also add :not as indebted and without a major Russian shareholder.
beardy is offline  
Old 5th Sep 2023, 12:29
  #39 (permalink)  
H44
 
Join Date: Oct 2015
Location: My house
Posts: 57
Likes: 0
Received 0 Likes on 0 Posts
You’re correct about not as indebted. However, TUI were a lot more profitable than Jet2 prior to covid.

Not sure what the major Russian shareholder has to do with anything.
H44 is offline  
Old 5th Sep 2023, 15:09
  #40 (permalink)  
 
Join Date: Nov 2000
Location: UK
Age: 69
Posts: 1,395
Received 40 Likes on 22 Posts
Originally Posted by H44
You’re correct about not as indebted. However, TUI were a lot more profitable than Jet2 prior to covid.

Not sure what the major Russian shareholder has to do with anything.
As a keen amateur investor I like to know who the major share holders are, it gives an inkling into possible future plans. I also like to monitor board members' stock movement. The major shareholder is a Russian and the company owned by his wife, they bought in when TUI had to payback their covid relief debts. I believe that he is currently sanctioned by the USA. How reliable is he? Only time will tell. I also look at profit, but not as a simple number, it's important to look at the profit in relation to many different markers. Technically TUI is close to not being liquid, debts are greater than assets at the moment and earnings are close to interest on the debt. Not a dissimilar picture to Thomas Cook. The opportunity for share growth exists but only if the market remains buoyant and margins stay strong and investors (and banks) stay reliable. The cost of borrowing to cover the debts has increased remarkably and may stay high for some time. This could put pressure on TUI.
Jet2 benefit greatly when TUI don't cut prices(in order to preserve their margins). TUI are present in many markets whereas Jet2 rely on the UK. So far the UK market has held up well, the same can't be said for some of TUI's markets.

So whose shares should one buy, if either?


Sorry if it's a bit of thread drift. This 'meeting' doesn’t appear to have affected Jet2 share price much, yet.

Last edited by beardy; 5th Sep 2023 at 16:47.
beardy is offline  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.