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01Jun12 : bmi Regional sold to Sector Aviation Holdings; ends Diamond Club 30Sep12

01Jun12 : bmi Regional sold to Sector Aviation Holdings; ends Diamond Club 30Sep12

Old Apr 22, 12, 8:25 am
  #1  
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01Jun12 : bmi Regional sold to Sector Aviation Holdings; ends Diamond Club 30Sep12

An article from the local paper in Aberdeen (Press & Journal) Sat 21 April about the possible take over of bmi Regional

"North-east aviation entrepreneurs are in talks with British Airways to take over bmi's regional division and secure 300 Aberdeen jobs.

Granite Aviation, led by Grame Ross, Ian Woodley and Robert Sturman, hopes to take over bmi regional by the end of the month.

Mr Woodley said last night Granite Aviation would mantain bmi regional's name and branding, all employees would be kept on and the company's operational headquarters would remain in Aberdeen.

He declined to reveal Granite Aviation's backer but said the company was fully funded to complete the acquisition.

Mr Woodley said Regional was a "healthy business" and was breaking even.

The three men behind Granite City Avaition

Graeme Ross and Ian Woodley are former bosses of Aberdeen based Business Air, The airline was swallowed up by British Midland and Mr Ross went on to join Eastern Airways as director for Scotland. He spent eight years there before stepping down in 2010. Mr Woodley was also a director for British Midland Regional until 1998. Robert Sturman is the former chief executive and chairman of British World Airlines which went into receivership in 2001"
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Old Apr 22, 12, 9:56 am
  #2  
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Let's hope they will be successful. A similar report in The Herald.

Consortium nears BMI Regional airline deal

Damien Henderson
Transport Correspondent

HOPES have been raised that the Aberdeen-based regional arm of airline BMI may be sold to a consortium of local businessmen, securing nearly 400 jobs, after its new owner said it was not part of the company's long-term plans.

International Airlines Group, the parent company of British Airways, yesterday finalised its 172.5 million purchase of BMI from Lufthansa and confirmed plans to integrate the heavily loss-making airline into BA's operations.

But it said that BMI Regional and low-cost airline bmibaby "are not part of IAG's long-term plans". It added in a statement: "IAG will pursue options to exit these businesses and more details will be provided in due course."

Lufthansa had tried to dispose of both bmibaby and BMI Regional prior to the sale but failed to secure a buyer, prompting union concerns yesterday for the future of around 800 staff at both airlines.

However, a group of investors known as Granite is understood to be close to finalising a deal to buy BMI Regional, which flies from Glasgow, Aberdeen and Edinburgh to a number of UK and European airports.

The consortium nearly reached a deal late last year which fell through after one of the backers pulled out, a source said. "They're about 95% there. There have been hopes raised in the past but there is a new investor in place," the source added.

The consortium is being led by Ian Woodley and Graeme Ross, who founded Business Air before it was sold to British Midland in 1996 and changed its name to BMI Regional. Another key player is Robert Sturman, who was chief executive of British World Airlines for a decade.

Last week, IAG warned that the takeover of BMI was likely to lead to up to 1200 job losses.
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Old Apr 22, 12, 9:58 am
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Good luck to them....they'll need lots of it.
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Old Apr 22, 12, 10:05 am
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Originally Posted by HIDDY View Post
Good luck to them....they'll need lots of it.
Not really. BD-R is a fantastic airline which I used frequently. It provides for the business market (its target market) superbly.

Yes, the fares are high, but it is not an airline looking to fill seats at any price. Hence, it attracts the kind of fares businesses are prepared to pay.
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Old Apr 22, 12, 10:16 am
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bmi Regional - Granite City Aviation

Hopefully they can complete this deal (a) to save jobs and (b) to keep competition on routes where flybe operate and (c) keep the bmi name going for a bit longer
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Old Apr 22, 12, 10:30 am
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Originally Posted by rossmacd View Post
Not really. BD-R is a fantastic airline which I used frequently. It provides for the business market (its target market) superbly.

Yes, the fares are high, but it is not an airline looking to fill seats at any price. Hence, it attracts the kind of fares businesses are prepared to pay.
On the face of it I would agree.
However....the profitability of it has always been in doubt especially with the arrival of lower cost operators on some routes. Frankly I'll be very surprised if it works out for them.
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Old Apr 22, 12, 11:17 am
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Originally Posted by RedMark View Post
Hopefully they can complete this deal ...
To me, the big question is why has it taken them this long since the deal was first announced at the end of October 2011?

See: http://www.flyertalk.com/forum/17354709-post583.html.
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Old Apr 22, 12, 1:02 pm
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bmi Regional - Granite City Aviation

Post 2 says one of the backers pulled out.

Maybe they think they will get a better deal from BA than LH
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Old Apr 22, 12, 1:20 pm
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Would BA ever think of integrating BD-R at LCY?

Last edited by BA6501; Apr 22, 12 at 1:25 pm Reason: sp
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Old Apr 22, 12, 1:25 pm
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Originally Posted by RedMark View Post
Maybe they think they will get a better deal from BA than LH
That must be one of the few reasons which would not raise red warning flags, although it suggests that "pulled out" may be disingenuous.
Originally Posted by BA6501 View Post
Would BA even think of integrating BD-R at LCY?
It rather sounds like IAG is determined not to do this.
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Old Apr 22, 12, 1:28 pm
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Especially now that BD is off the domestics, BA could use the LHR slots for other places (instead of adding two or three flights with bigger aircraft) and have a more frequent E135/E145 service to EDI/ABZ/MAN/GLA or wherever, and use the bigger E170/E190 to further afield destinations.

Wild armchair CEO guess though
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Old Apr 22, 12, 4:45 pm
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BD off the domestics, when did this happen?
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Old Apr 22, 12, 5:56 pm
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Aren't Regional used to operate some mainline routes, eg Aberdeen and Hanover and if BA don't want to continue with this arrangement, and presumably they don't, the basic economics of regional may be challenged?
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Old Apr 22, 12, 6:12 pm
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Aberdeen might be both as I have flown there from LHR on Embraers but have also seen A319s(?) sitting up north. If I understand Regional exclusively operate 135s/145s but is there any interchangeability, both in aircraft and which company actually operates the route? BA run plenty of turns to Aberdeen already so it would likely be close to saturation. Anyway my hunch would be the value of regional is in connecting non-London UK domestic routes.... Or would that actually not make any money at all.
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Old Apr 23, 12, 2:57 am
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Originally Posted by GAYOP View Post
BD off the domestics, when did this happen?
News to most of us too I suspect....

I suspect the OP meant post-integration.
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