BA Pilots Ponder BMI Proposal
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Integration has been confirmed by IAG:
http://www.iairgroup.com/External.Fi...zgIculcYawJg==
http://www.iairgroup.com/External.Fi...zgIculcYawJg==
IAG plans to integrate bmi mainline into British Airways, subject to receiving regulatory approval for the acquisition. This follows agreement by British Airways’ pilots to make productivity changes that justify the integration.
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Currently bmi are looking at:
No they are not, that decision was taken by the BA pilots in a ballot. BMI had no choice in the matter. If the pilots in BA didn't agree to changes to bring BMI into BA with full integration then IAG 'threatened' to run it as a seperate entity.
If IAG had run it that way then it would have been a buyout and TUPE would not be applicable. Read into that for your future contracts what you will.
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Make your mind up!
Prior to the BA pilots vote were bmi on the "rapid road to obscurity" or were they to be run as a standalone by IAG with all future LHR growth coming their way as indicated by the BACC and BA management?
Out of interest, when do you think integration is going to occur?
Prior to the BA pilots vote were bmi on the "rapid road to obscurity" or were they to be run as a standalone by IAG with all future LHR growth coming their way as indicated by the BACC and BA management?
Out of interest, when do you think integration is going to occur?
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If BMI had not been bought (for the slots, the deal would have been cheaper if all the 'baggage' had arrived with the slots) then BMI was on the slide to bankruptcy, no doubt about it.
If IAG had run it as BA 'Express' as everyone seems to call it, then major changes were obviously needed with a massive reduction in cost base to recover the losses incurred each year and make the business profitable. Where do you think those cost savings would be levied? The combination of back office work would never be enough. TUPE wouldn't apply as new contracts could be drawn up with the transfer of AOC. BMI didn't make money under BMI marketing, it would need a fundamental shift to start making money under BA marketing.
BA offered the BACC the option to decide if integration should occur. Be under no doubts that there were some on the IAG board who immediately wanted a BA Express and the reduced cost base. The BACC and BA management convinced them that integrating into the mainline would be better and SH cost parity could be achieved in the short to medium term.
That is where we are at. Integration details next, Shorthaul Profitability targets reached will be the next big 'bite at the T's & C's' cherry for the company. We can only wait and see if the savings pan out. Sad though it is to say but the loss of smaller airlines makes it easier but the continued loss of One World partners makes it more difficult.
If IAG had run it as BA 'Express' as everyone seems to call it, then major changes were obviously needed with a massive reduction in cost base to recover the losses incurred each year and make the business profitable. Where do you think those cost savings would be levied? The combination of back office work would never be enough. TUPE wouldn't apply as new contracts could be drawn up with the transfer of AOC. BMI didn't make money under BMI marketing, it would need a fundamental shift to start making money under BA marketing.
BA offered the BACC the option to decide if integration should occur. Be under no doubts that there were some on the IAG board who immediately wanted a BA Express and the reduced cost base. The BACC and BA management convinced them that integrating into the mainline would be better and SH cost parity could be achieved in the short to medium term.
That is where we are at. Integration details next, Shorthaul Profitability targets reached will be the next big 'bite at the T's & C's' cherry for the company. We can only wait and see if the savings pan out. Sad though it is to say but the loss of smaller airlines makes it easier but the continued loss of One World partners makes it more difficult.
