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Virgin in talks with LH over future of bmi

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Virgin in talks with LH over future of bmi

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Old 10th Dec 2008, 12:08
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Virgin in talks with LH over future of bmi

Now there is a rumour .... true though. Being reported on BBC.
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Old 10th Dec 2008, 12:13
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FFS ! What ever next?
I just want to know who (if anyone) will be paying my wages this time next year !
What a circus !
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Old 10th Dec 2008, 13:01
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SKY Breaking News:

Virgin Atlantic in discussion with Lufthansa "regarding the future of British Airline bmi"

Be interesting to watch the fall out on this one..!!
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Old 10th Dec 2008, 13:24
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Well here we are another Wednesday...........

Funnily enough I was only discussing this rumour with a VS CC this morning.

It looks as though LH are going to be breaking the group up, so perhaps the rumours about Regional/Baby going to FlyBe might be true.
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Old 10th Dec 2008, 13:27
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I mean, it's only peoples lives that they are messing with, here....
Just get it over and done with, so we know just what we're faced with !
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Old 10th Dec 2008, 13:28
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This news has been about for a while, at least as a strong rumour.

Good news I say. Bring it on.
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Old 10th Dec 2008, 13:28
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Just get it over and done with, so we know just what we're faced with !
Absolutely.
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Old 10th Dec 2008, 14:48
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It's just exploritory and speculation, don't panic just yet!
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Old 10th Dec 2008, 14:48
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If Branson has money to spend, he said a while back he wanted to buy BMI, and is now in talks with LH over BMI,s future which would cost VS to have any input. Why does he not buy the 49% of VS that Singapore want to off load??. Is BMI a better investment than the rest of his own company ??

Is this yet again more "hot air" or a reaction to the BA/QF/IB/AA talks of merger?
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Old 10th Dec 2008, 14:50
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That's funny, yesterday evening I opened a thread with the same subject but it was deleted/moved somewhere pretty soon.

Strange.....
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Old 10th Dec 2008, 14:51
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Why does he not buy the 49% of VS that Singapore want to off load
Because it doesnt give him any more LHR slots?
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Old 10th Dec 2008, 15:01
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[QUOTE][/Because it doesnt give him any more LHR slots?QUOTE]

Same conclusion.

Interest is more slots rather than having a benevolent view on BMI.
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Old 10th Dec 2008, 15:40
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Good point about the slots!!. However as is the case with BMI being sold to LH, what would happen if the 49% share of VS if was sold to another carrier would this not risk the slots already held by VS and indeed any further growth plans they may have?. Or am i thinking i a too simplisitic way?.

Self preservation in the current climate must be as important as future growth.
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Old 10th Dec 2008, 16:46
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the beardrd one has only one persons interest at heart/HIS
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Old 10th Dec 2008, 16:53
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what would happen if the 49% share of VS if was sold to another carrier would this not risk the slots already held by VS and indeed any further growth plans they may have?
Nothing as a 49% share in a private company where someone else holds 51% has no real power. No matter what you do you can always be outvoted.
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Old 10th Dec 2008, 18:54
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Honestly this VS to buy bmi has been dragging on for such a long time that its becomig so boring. Why would LH want to sell to Beardie anyway? At the end of the day, will this improve the VS route network and more importantly the standard of services that are provided? My thoughts are with the people at bmi who must be fed up with the whole caper by now.
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Old 10th Dec 2008, 21:14
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They have been in talks for some time, it has been reported in various business articles over the past year. Once SRB realised that SMB was leaving the stage they turned their attention to talks with Lufthansa. Ultimately it is their decision now as to what happens with bmi and that announcement is on the 15th Jan'09. We await their intentions...
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Old 11th Dec 2008, 08:05
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I love the 'slot' discussion when it falls to BMI's slots at Heathrow. Whilst any slot out of and into Heathrow is valuable, they only become valuable to long haul if you can sensibly tie them up with a useful slot at your major destination airport. Conversely the return slots need a sensible departure, boarding and check in time at the other end. There is no point using the slot out of Heathrow and then having to fly very slowly for 12 hours as you can't land until then at your destination.

All slots are not equal! Whilst some of BMI's slots could be converted a lot couldn't. LH and SH departures are biased towards the more lucrative LH slots with SH 'giving way' in terms of schedule.

I hope the future of BMI gets sorted soon as no one wants the worry at any time let alone over the festive season.

Good luck to all.
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Old 11th Dec 2008, 14:56
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All slots are not equal! Whilst some of BMI's slots could be converted a lot couldn't.
Don't totally disagree but there is also a monetary value that could be placed on slot rights (high at LHR whatever time) and then used in the asset column to bolster the balance sheet.

Also, once you have a slot you have something to bargain with. We all know LHR in particular has been a closed gang for years so again, not all slots are the same agreed , but any slot at LHR has potentially huge positives.
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Old 11th Dec 2008, 17:19
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Is it not possible that a VS-BD tie-up would actually be beneficial for both sides? An established LH operator with a good reputation links up with an established SH operator with a good reputation...and you get a full range operator with a good reputation!

I'm not convinced this is about slots at LHR...maybe more about two airlines, who would be a good match for each other, getting together at an opportune time...and maybe a VS / BD / LH combination isn't too much a stretch of the imagination!
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