IAG and Lufthansa reach agreement in principle on the sale of British Midland Ltd.
Nov 4, 2011, 1:18 am
#1
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IAG and Lufthansa reach agreement in principle on the sale of British Midland Ltd.
And here is IAG's press release:
Mod edit : for newcomers, the BD press statement on the future of Diamond club is :
Following on from today’s announcement we’d like to advise that it’s business as usual at bmi. The route network and schedule for bmi remains as is and any bookings made now for future travel will be fully honoured.
An agreement in principle for the sale of bmi to IAG has been reached and it is expected that the purchase agreement will be signed in the coming weeks. The sale remains subject to conditions.
The aim is for the transaction to be completed in the first quarter of 2012.
In respect to Diamond Club, which is very important to us, we can advise that the programme benefits have not changed and customers can continue to earn and spend miles. Our obligations to our frequent fliers will be honoured.
Unfortunately our answers are limited due to the status of the process but we will continue to keep you updated.
IAG AND LUFTHANSA REACH AGREEMENT IN PRINCIPLE ON THE SALE OF BRITISH MIDLAND LTD
International Airlines Group (IAG) and Deutsche Lufthansa AG (Lufthansa) have today reached an agreement in principle for the sale of British Midland Ltd (BMI) to IAG.
The sale and closing of the deal remain subject to conditions including a binding purchase agreement, further due diligence and regulatory clearances. It is envisaged that the purchase agreement will be signed in the coming weeks and the aim is for the transaction to be completed in the first quarter of 2012.
International Airlines Group (IAG) and Deutsche Lufthansa AG (Lufthansa) have today reached an agreement in principle for the sale of British Midland Ltd (BMI) to IAG.
The sale and closing of the deal remain subject to conditions including a binding purchase agreement, further due diligence and regulatory clearances. It is envisaged that the purchase agreement will be signed in the coming weeks and the aim is for the transaction to be completed in the first quarter of 2012.
Following on from today’s announcement we’d like to advise that it’s business as usual at bmi. The route network and schedule for bmi remains as is and any bookings made now for future travel will be fully honoured.
An agreement in principle for the sale of bmi to IAG has been reached and it is expected that the purchase agreement will be signed in the coming weeks. The sale remains subject to conditions.
The aim is for the transaction to be completed in the first quarter of 2012.
In respect to Diamond Club, which is very important to us, we can advise that the programme benefits have not changed and customers can continue to earn and spend miles. Our obligations to our frequent fliers will be honoured.
Unfortunately our answers are limited due to the status of the process but we will continue to keep you updated.
Last edited by Oxon Flyer; Nov 4, 2011 at 9:19 am
Nov 4, 2011, 1:36 am
#2
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Just been announced on Sky News. IAG to buy Bmi from Lufthansa.
The newsreader did not elaborate on whether booked reward flights would be honoured or not.
In other news, phone lines collapse in Pune, India, due to a massive surge in calls to the area.
The newsreader did not elaborate on whether booked reward flights would be honoured or not.
In other news, phone lines collapse in Pune, India, due to a massive surge in calls to the area.
Nov 4, 2011, 1:46 am
#3
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Good yet sad news. I too will miss BMI and some of their lovely staff (many whom left since due to route closures). As others have said, hopefully many who are still around at BD will find new roles within the overall IAG group. At least this means that their airline as a whole is unlikely to be shut down and instead swallowed up by IAG.
The ensuring chaos at LHR with the terminal shuffle will be interesting to watch, but I believe it might actually help BAA in potentially moving airlines like TK, SQ, SK and AC across to T1 a little faster. BA's eventual Ops at T3 will obviously have to grow, even with all the extensions being built over at T5. Not sure what will happen to the T1 cigar tube however, as with BD out of the picture at T1, it may no longer be required (good riddance I say!).
Personally I strongly suspect DC will migrate to BAEC (perhaps with Spanish customers across to IB's programme). The database of flyers definitely has value to BA, and I suspect we can all wear our rose coloured glasses at times and thing that all of the big hitters are actually overseas (i.e. non UK) FT'ers crediting *A flights to BD - personally I don't subscribe to that view. In fact the database might be one of the few assets which help make up for the sea of red which IAG are taking on.
The good news is that post integration, we might actually see some economically rational pricing on BD for a change (i.e. full flight = expensive price, and empty flight = cheap).
I will miss the ability to mix and match between *A and OW, as it has been very useful over the years when availability on one alliance is spotty. I don't think I will have an opportunity to burn many miles over the next few months just due to work commitments, although moving miles to BA will allow me finally to use some miles on upgrades (for some of the said work related trips). Assuming DC does move to BAEC for UK customers, a status match by BA might actually be perfect timing for me as I cash out of the dreadful QF programme within the next 6-12 months (my 'lifetime' lounge access goal achieved).
The ensuring chaos at LHR with the terminal shuffle will be interesting to watch, but I believe it might actually help BAA in potentially moving airlines like TK, SQ, SK and AC across to T1 a little faster. BA's eventual Ops at T3 will obviously have to grow, even with all the extensions being built over at T5. Not sure what will happen to the T1 cigar tube however, as with BD out of the picture at T1, it may no longer be required (good riddance I say!).
Personally I strongly suspect DC will migrate to BAEC (perhaps with Spanish customers across to IB's programme). The database of flyers definitely has value to BA, and I suspect we can all wear our rose coloured glasses at times and thing that all of the big hitters are actually overseas (i.e. non UK) FT'ers crediting *A flights to BD - personally I don't subscribe to that view. In fact the database might be one of the few assets which help make up for the sea of red which IAG are taking on.
The good news is that post integration, we might actually see some economically rational pricing on BD for a change (i.e. full flight = expensive price, and empty flight = cheap).
I will miss the ability to mix and match between *A and OW, as it has been very useful over the years when availability on one alliance is spotty. I don't think I will have an opportunity to burn many miles over the next few months just due to work commitments, although moving miles to BA will allow me finally to use some miles on upgrades (for some of the said work related trips). Assuming DC does move to BAEC for UK customers, a status match by BA might actually be perfect timing for me as I cash out of the dreadful QF programme within the next 6-12 months (my 'lifetime' lounge access goal achieved).
Nov 4, 2011, 1:46 am
#4
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Nov 4, 2011, 1:51 am
#5
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Will miss BMI sadly I fully expect BMI to basically be shutdown and merely the slots transferred to BA but we'll see, might try and burn some of my miles now, wouldn't mind a status match to BA's FF though!!
Will be sad to see BMI go, have used them for a number of years now... still has to get cleared by competition authorities first I guess.
Will be sad to see BMI go, have used them for a number of years now... still has to get cleared by competition authorities first I guess.
Nov 4, 2011, 2:00 am
#6
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Nov 4, 2011, 2:02 am
#7
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And here is IAG's press release:
I am DC Gold till mid-March (q1/2012) so I keep my fingers crossed that they do. I could easily requalify, but under the circumstances I rather go for SK*G than pour miles into DC (even though via my VS flights the DC pot is still growing - but no status)
Nov 4, 2011, 2:06 am
#8
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If they want to finalise the deal by March 2012.
It looks like to me DC reward bookings are safe at least for the next 4 months.
AM I sound too optimistic?
It looks like to me DC reward bookings are safe at least for the next 4 months.
AM I sound too optimistic?
Nov 4, 2011, 2:07 am
#9
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Lufthansa agrees to sell BMI to British Airways owner
Here's the breaking news.
So it looks like BMI will go to IAG (owner of British Airways). I wonder what that means to BMI's membership in Star Alliance? It was easy under LH since LH was also a *A carrier.
So it looks like BMI will go to IAG (owner of British Airways). I wonder what that means to BMI's membership in Star Alliance? It was easy under LH since LH was also a *A carrier.
Nov 4, 2011, 2:09 am
#10
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Even after that I'd expect it to take some time before anything really changes, I don't think they'll take over on March 30th and "switch off the lights"
Nov 4, 2011, 2:35 am
#11
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The big problem is that BA will likely just want the landing slots so good bye to the few remaining domestic routes including Belfast. Not good for bmi staff I fear at out stations anywhere. I sad day from bmi. I wonder if MB could have kept it afloat...
Bmifly
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Nov 4, 2011, 2:41 am
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This would then have to be referred to UK-CC and maybe EU competition authorities?
Nov 4, 2011, 2:41 am
#13
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RAMPANT SPECULATION TIME!: My guess is that if the competition regulator doesn't get in the way that the deal will be sealed towards the end of March. bmi would probably then operate as planned over the summer 2012 timetable (possibly with some action taken to stop some of the cash hemorrhaging). Then we'd possibly see some terminal shuffling for the winter 2012/13 season and rationalisation of the timetable on routes like EDI, MAN and DME. Finally by summer 2013 we'd probably see bmi integrated fully into British Airways.
Nov 4, 2011, 2:49 am
#14
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Bittersweet.............
"Darling Daughter" is a very proud member of bmi's LHR cabin crew - maybe you "Real Diamonds" out there have flown with her? I am pleased to say that she has been told that, if the deal is allowed to proceed, her colleagues and her will be transferred into BA. As Daddy Dear works at BA, I am pleased that the honourable thing is being done by IAG and Lufty!
However, I am still a trifle worried for all the decent, hard-working people at other bmi locations and I only hope BA offers redeployment packages. (Whether the guys in outstations or the Head Office at Donnington Hall would be able to come down to Heathrow or Watersplash to work is, of course, impossible for many, but at least something could be offered in these hard times. I hope so!
However, I am still a trifle worried for all the decent, hard-working people at other bmi locations and I only hope BA offers redeployment packages. (Whether the guys in outstations or the Head Office at Donnington Hall would be able to come down to Heathrow or Watersplash to work is, of course, impossible for many, but at least something could be offered in these hard times. I hope so!
Nov 4, 2011, 2:51 am
#15
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A sad day. Fans of BMI will have learnt over the years to be disappointed on a regular basis by the direction of the company, only to have our hearts lifted again whenever we step onto a BD operated flight.
Notwithstanding our obvious and sincere concerns for the future of all the valued BD employees, what is now the best / middling / worst case scenario for the different groups of FT members here? I.E. those with lifetime Gold, >1m miles, >500,000 miles, <100,000 miles, status renewing at various points over the next 12 months?
Notwithstanding our obvious and sincere concerns for the future of all the valued BD employees, what is now the best / middling / worst case scenario for the different groups of FT members here? I.E. those with lifetime Gold, >1m miles, >500,000 miles, <100,000 miles, status renewing at various points over the next 12 months?