The 'FUTURE OF BMI' thread, the LH takeover, & what it might mean for Diamond Club...
Jul 29, 2009, 3:28 pm
#751
Join Date: Jan 2009
Location: Glasgow
Programs: BA Gold
Posts: 113
Last edited by GrayBDG; Jul 29, 2009 at 3:47 pm
Jul 29, 2009, 3:39 pm
#752
Join Date: Apr 2007
Posts: 727
Jul 30, 2009, 11:38 pm
#755
Join Date: Jun 2002
Location: Brisbane
Posts: 805
LH in talks with VS about BD
I'd be surprised that VS has the cash to buy BD, but it looks like LH wants BD off the balance sheet.
http://www.centreforaviation.com/new...all-down/page1
Originally Posted by Centre for Asia Pacific Aviation
Shares in Lufthansa dipped 1.8% on Friday, as the carrier announced plans to halt capacity growth in 2010, in preparation for prolonged market weakness.....
Lufthansa is also holding talks with Virgin Atlantic regarding the future of bmi. Lufthansa announced last week it is considering plans to sell its 80% stake in loss-making bmi. The parties stated the discussions may or may not lead to an agreement and a further announcement “will be made in due course”.
Lufthansa is also holding talks with Virgin Atlantic regarding the future of bmi. Lufthansa announced last week it is considering plans to sell its 80% stake in loss-making bmi. The parties stated the discussions may or may not lead to an agreement and a further announcement “will be made in due course”.
Jul 31, 2009, 1:21 am
#756
Join Date: Feb 2009
Location: London, UK
Programs: BA, FB, LH; PC/IC, HH, MR
Posts: 964
Man, this never ends does it?!
I just feel sorry for all the staff whose futures seem to be in a never ending state of "what colour uniform are we likely to be wearing in 6-months time"
I just feel sorry for all the staff whose futures seem to be in a never ending state of "what colour uniform are we likely to be wearing in 6-months time"
Jul 31, 2009, 2:11 am
#758
Join Date: Dec 2008
Location: Peoples Republic of Yorkshire
Programs: BA G, AC*G, PC P, Marriot Plat, Carlson Gold etc....
Posts: 379
This is going to be a long running saga indeed. Due Dilligence is going to take a while. And I would suggest their are dozens of options from total retention to total sell-off and everything in-between. So no point even guessing which is likely.
The slice of the Heathrow action was certainly attractive to LH five years ago with all that premium traffic they wanted a slice of. So have they got the stomach for a five year wait with huge potential losses or have they really bitten off more than they can chew in the short term. Many chapters of this book yet to come.
Under an option where bmi went to VS, do you think VS would come into star?
The slice of the Heathrow action was certainly attractive to LH five years ago with all that premium traffic they wanted a slice of. So have they got the stomach for a five year wait with huge potential losses or have they really bitten off more than they can chew in the short term. Many chapters of this book yet to come.
Under an option where bmi went to VS, do you think VS would come into star?
Jul 31, 2009, 2:22 am
#759
FlyerTalk Evangelist
Join Date: Feb 2004
Location: London
Programs: BA, VS, HH, IHG, MB, MR
Posts: 26,871
You can't help thinking, though, that LH would be kicking themselves in 10 years if they sold BMI and the LHR slots now. This really is a once in a lifetime chance to build a position at LHR.
The idea that they might keep the Heathrow slots and sell BMI is obviously nonsense. There is no market demand for a raft of new *A shorthauls from LHR to Germany / Austria / Switzerland - the slots only make sense if you want to develop a long-haul or mid-haul operation with LH / Austrian / Swiss / Brussels / LOT / TAP / SAS offering feeder flights across Europe. Add in a few rotations to Paris, Spain and the Netherlands and you've pretty much got BA's level of connections.
The idea that they might keep the Heathrow slots and sell BMI is obviously nonsense. There is no market demand for a raft of new *A shorthauls from LHR to Germany / Austria / Switzerland - the slots only make sense if you want to develop a long-haul or mid-haul operation with LH / Austrian / Swiss / Brussels / LOT / TAP / SAS offering feeder flights across Europe. Add in a few rotations to Paris, Spain and the Netherlands and you've pretty much got BA's level of connections.
Jul 31, 2009, 2:50 am
#760
Join Date: May 2005
Location: BRU
Programs: A3/Gold, BA/Gold + other less precious metals
Posts: 2,641
Jul 31, 2009, 3:37 am
#761
Join Date: Mar 2009
Programs: UA, AA, BMI, MR, HH, PC
Posts: 806
This is my feeling too; they may hedge their bets and try to keep some and sell the rest on to VS if it can somehow buy. Or perhaps they are just no longer interested in major share in UK market either short or long term. Whatever the truth I get the feeling SRB is sitting pretty and he knows it. I don't think anybody has mentioned the BMI metal, is this owned by BMI outright or on long term lease? You would think LH would be interested in replacing some of their old 737s with the BD airbuses.
Jul 31, 2009, 3:38 am
#762
Join Date: Dec 2006
Location: London-Nice
Programs: GGL
Posts: 1,425
Jul 31, 2009, 8:35 am
#764
Join Date: Jun 2002
Location: London, UK
Programs: BA Gold(OWE), QF LTG, MR Plat, IHG Spire, Hertz PC
Posts: 8,156
This is my feeling too; they may hedge their bets and try to keep some and sell the rest on to VS if it can somehow buy. Or perhaps they are just no longer interested in major share in UK market either short or long term. Whatever the truth I get the feeling SRB is sitting pretty and he knows it. I don't think anybody has mentioned the BMI metal, is this owned by BMI outright or on long term lease? You would think LH would be interested in replacing some of their old 737s with the BD airbuses.