LH to take 50% share of BMI
Oct 29, 2008, 5:14 am
#1
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LH to take 50% share of BMI
As quoted from the BBC.CO.UK
"UK airline BMI is being taken over by Germany's Lufthansa.
Lufthansa, which already owns a 30% stake in BMI minus one share, is buying the 50% of the company owned by BMI chairman Sir Michael Bishop.
The deal will give Lufthansa control of more flights from London Heathrow airport than any other airline except British Airways.
The remaining 20% of BMI is currently owned by Sweden-based Scandinavian Airlines (SAS).
Lufthansa said it intends to complete the deal by 16 January. "
http://news.bbc.co.uk/1/hi/business/7697261.stm
"UK airline BMI is being taken over by Germany's Lufthansa.
Lufthansa, which already owns a 30% stake in BMI minus one share, is buying the 50% of the company owned by BMI chairman Sir Michael Bishop.
The deal will give Lufthansa control of more flights from London Heathrow airport than any other airline except British Airways.
The remaining 20% of BMI is currently owned by Sweden-based Scandinavian Airlines (SAS).
Lufthansa said it intends to complete the deal by 16 January. "
http://news.bbc.co.uk/1/hi/business/7697261.stm
Oct 29, 2008, 6:05 am
#2
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BMI will quickly be transformed into a long-haul carrier using the LHR slots mentioned already. Makes more sense to use the scarce production capacity LHR offers for 250+ seats ( maybe even BBJ's ) going on interconti flights than an A 319 paddling over the channel to Schiphol, if it does not work, you can always lease the slots to desperate American airlines or sell to airlines from the Near East. 
Heads up to Bishop, though, although known as the Whiner since years, he was smart enough to exit at a late, but still manageable stage.
Certainly always hard to sell your lifework.
Instead of critisizing the Wolf in Austria, he should be praised as the Austrian to look up to
Heads up to Bishop, though, although known as the Whiner since years, he was smart enough to exit at a late, but still manageable stage.
Certainly always hard to sell your lifework.
Instead of critisizing the Wolf in Austria, he should be praised as the Austrian to look up to
Oct 29, 2008, 6:18 am
#3
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For M&M lurkers, you might be better off reading the BD board thread:
http://www.flyertalk.com/forum/showthread.php?t=882694
Oct 29, 2008, 6:20 am
#4
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BMI will quickly be transformed into a long-haul carrier using the LHR slots mentioned already. Makes more sense to use the scarce production capacity LHR offers for 250+ seats ( maybe even BBJ's ) going on interconti flights than an A 319 paddling over the channel to Schiphol, if it does not work, you can always lease the slots to desperate American airlines or sell to airlines from the Near East.
</armchairceo>
Oct 29, 2008, 6:21 am
#5
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Oct 29, 2008, 6:33 am
#6
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The BMI announcement came as Lufthansa announced a 75% fall in net profit for the July to September period, which it blamed on higher fuel costs.
Oh, and a lil question: Who's gonna buy OS now?
Oct 29, 2008, 6:46 am
#9
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Oct 29, 2008, 6:49 am
#11
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Oct 29, 2008, 6:52 am
#12
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The LHR to USA market hasn't been a stellar success for all the new entrants. Entering the bloodbath over the north Atlantic right now with major additional capacity seems like a perfect way to lose money. Especially as LH already covers most of the US with their revenue share with United, which they will surely extend to BMI. The only really important white sport right now is New York which should be covered by CO join *A and the LH/UA joint venture next year.
</armchairceo>
</armchairceo>
As far as NYC is concerned, the arguments are the same except stronger. It will be especially difficult to enter this market at this point, given the very strong dominance of BA and VS on that market. If I were them, this would NOT be where I would start from.
Oct 29, 2008, 6:53 am
#13
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Oct 29, 2008, 6:54 am
#15
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Why would they want to have SK as a minority owner? I'm sure you also know that SK need money. A lot of it in fact. So much that LH are considered likely to buy SK just like silversurfer hinted.