IAG and LH agree sale of British Midland Airlines Ltd; BD 'to exit *A on completion'
Dec 12, 2011, 5:40 am
#16
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Dec 12, 2011, 7:49 am
#17
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It's looking quite good for tricky Dicky on this one if you ask me. It's not like it was 25 years ago where BA / IAG could have relied fully on government support for whatever they did both because government now has less influence on matters such as this and because I suspect they are reasnably well disposed to SRB after 'taking' Northern Rock off their hands.
Add in the near certainty that regulatory issues can be resolved quickly, LH wanting to cut their losses ASAP (you would think) and the fact that the reality is that a BD/VS tie up is probably far less threatening to LH than giving BA shedloads of slots then it looks very good for VS.
As for STAR membership....that would be the stumbling block I'd imagine. Can't see UA or possibly AC being too happy at the competition - especially if there is Middle Eastern money involved (which would also upset LH I'd guess).
Add in the near certainty that regulatory issues can be resolved quickly, LH wanting to cut their losses ASAP (you would think) and the fact that the reality is that a BD/VS tie up is probably far less threatening to LH than giving BA shedloads of slots then it looks very good for VS.
As for STAR membership....that would be the stumbling block I'd imagine. Can't see UA or possibly AC being too happy at the competition - especially if there is Middle Eastern money involved (which would also upset LH I'd guess).
Dec 12, 2011, 8:07 am
#18
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The money is coming supposedly from EY isn't it? And aren't EY being courted by * anyway?
As it's CO management at the top of UA now and CO are already VS partners it could potentially be less of a problem than people imagine. Plus it opens up LHR-JFK in a big way for *
A lot of positives here
EDIT: I also see over on a.nut that AC themselves are wobbling towards bankruptcy, so they have other things to worry about.
As it's CO management at the top of UA now and CO are already VS partners it could potentially be less of a problem than people imagine. Plus it opens up LHR-JFK in a big way for *
A lot of positives here
EDIT: I also see over on a.nut that AC themselves are wobbling towards bankruptcy, so they have other things to worry about.
Last edited by Tiger_lily; Dec 12, 2011 at 8:12 am
Dec 12, 2011, 8:23 am
#19
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The money is coming supposedly from EY isn't it? And aren't EY being courted by * anyway?
As it's CO management at the top of UA now and CO are already VS partners it could potentially be less of a problem than people imagine. Plus it opens up LHR-JFK in a big way for *
A lot of positives here
EDIT: I also see over on a.nut that AC themselves are wobbling towards bankruptcy, so they have other things to worry about.
As it's CO management at the top of UA now and CO are already VS partners it could potentially be less of a problem than people imagine. Plus it opens up LHR-JFK in a big way for *
A lot of positives here
EDIT: I also see over on a.nut that AC themselves are wobbling towards bankruptcy, so they have other things to worry about.
Dec 12, 2011, 8:25 am
#20
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Good point on the UA / CO management....but would the fact that VS now compete directly on LAX, SFO and ORD (?) not make that previous code-share agreement a bit iffy? Though admittedly they have competed on the New York route for a while depsite the codeshares.
I saw that regarding AC on A.nut. Wonder if they are still putting all their focus on keeping more ambitious profitable companies out of their patch? Apologies for being OT and in the wrong forum. I do realise the profitable and ambitious are rarely mentioned in here!
I saw that regarding AC on A.nut. Wonder if they are still putting all their focus on keeping more ambitious profitable companies out of their patch? Apologies for being OT and in the wrong forum. I do realise the profitable and ambitious are rarely mentioned in here!
Dec 12, 2011, 8:35 am
#21
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To be honest I think that the status quo would be maintained. There's obviously enough pax around to sustain current schedules on those routes
Dec 12, 2011, 8:47 am
#22
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I believe the offer has been on the table the whole time - afterall VS did say they had placed a bid. Presumably as they dont have to announce everything as a publicly listed company does it hasnt all come out.
Now that it may be getting serious LH has to make an announcement.
IAG were saying as far away as 2 weeks ago that they were not the only bidder in the process so I think this is old news made public.
Now that it may be getting serious LH has to make an announcement.
IAG were saying as far away as 2 weeks ago that they were not the only bidder in the process so I think this is old news made public.
Dec 12, 2011, 8:50 am
#23
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As a doubting Thomas regarding Virgin being able to put their money where there mouth is I will happily eat my hat if VS swallow BD
Seriously,though I would worry about how the new group could turn BD's performance round, don't forget the £38 per pax losses. What about the route network? I couldn't see huge cost savings coming from a VS/BD tie up and so how is anything like the current BD route network, fleet and cost structure sustainable, the axe could swing even faster and cut even deeper than a future in IAG
Seriously,though I would worry about how the new group could turn BD's performance round, don't forget the £38 per pax losses. What about the route network? I couldn't see huge cost savings coming from a VS/BD tie up and so how is anything like the current BD route network, fleet and cost structure sustainable, the axe could swing even faster and cut even deeper than a future in IAG
Dec 12, 2011, 9:35 am
#24
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IMO this is nothing but yet another publicity stunt from Virgin. They have no intention of putting in a serious bid, but when IAG do eventually take over BD they can go crying to the authorities and get some free slots to keep them sweet.
Dec 12, 2011, 9:46 am
#25
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Dec 12, 2011, 12:59 pm
#28
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Good point on the UA / CO management....but would the fact that VS now compete directly on LAX, SFO and ORD (?) not make that previous code-share agreement a bit iffy? Though admittedly they have competed on the New York route for a while depsite the codeshares.
It would also free up aircraft for expansion on other/new routes for all airlines involved.
<edit> In fact, I'm pretty sure BD is already part of the UA/LH/AC/CO/LX/OS deal</edit>
Last edited by colmc; Dec 12, 2011 at 1:10 pm
Dec 12, 2011, 1:10 pm
#29
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Dec 12, 2011, 1:47 pm
#30
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I true Tricky Dicky fashion, it'll be somebody elses In fact I am surprised that he hasn't been on the phone to Mike Oldfield to pen a new album especially to fund this venture*
*Read his autobiography and you'll see what I mean
In fact I am surprised that he hasn't been on the phone to Mike Oldfield to pen a new album especially to fund this venture**Read his autobiography and you'll see what I mean