TravellingSalesman

"They who must not be named"?

themapelligroup

If AF/KLM can't reach an agreement the Italian government will likely do what already did to save Monte dei Paschi di Siena: they loan public money to the company and if they don't get them back by the settled time they become the largest shareholders.

HIDDY

The Aerolineas Argentinas way.....prop them up using millions of dollars of tax payers money then when that doesn't work just bully the competition (Lan) out of the way.
Increible!!

themapelligroup

What's incredible is that the Italian government wasted 3 billion euros of public money just 4 years ago to preserve the "Italianess" of the company and not sell it completely to AF/KLM.
The situation is pretty clear unfortunately: if tomorrow's board doesn't increase the share by 500 million euros Alitalia will cease operation.

ballencrieff

Looks like the people at the top are paying attention to Willie's whinges: :P

http://www.bbc.co.uk/news/business-24512781

(Yes, I know these are likely whinges that have come from other, more compelling, channels that have driven the UK govt. to act.)

BApilotinsider

IAG have their say on the Alitalia bailout....

http://uk.reuters.com/article/2013/1...99D0JX20131014

BApilotinsider

More bad news for Alitalia.

http://uk.finance.yahoo.com/news/air...103204442.html

cornishsimon

Also looks like BMIr are in the s**t which is really sad.

Base and route closures, its a shame that the new owners of BMIr didn't negotiate a deal with IAG when then bought the airline, to operate some routes for BA ex LCY instead of Eastern.


cs

cornishsimon

Here you go:
http://www.bbc.co.uk/news/uk-scotlan...iness-24766639
Five routes and three bases to go with staff having the option to relocate, but even still, is the EMB135/145 a model for an airline which can survive without codeshare/alliance flying to support it and funnel customers onto the aircraft ?


cs

layz

BM looked like they were doing well, then I look away for a bit and this happens

I thought bmi regional should have become either a BA franchise or restored their Star Alliance code shares.

cornishsimon

im in total agreement with you layz


I just cant see them surviving without one or another of those options being put into place ASAP, as a stand alone operator I don't think that the business model works.


cs

mjh0

The EMB135/145 doesn't really have brilliant economics, so BMIr kind of depend on high-yielding fares. If the yields on a particular route are a bit meh, the relatively high CASM bites.

It's no surprise that BMIr are consolidating on the "oil routes" out of ABZ with their current fleet, as these are likely to be higher-yielding fares purchased or changed at short notice.

I did wonder if they would be a player for the PSO route to NQY, but that would likely have to be flown as "W" from one of the other BMIr bases for crewing, plus costs of having to establish a new ground operation at Gatters. Makes it relatively unattractive. NQY is probably also a price sensitive market, so less willing to pay high-yielding fares?

Mike

Prospero

The Centre of Aviation published an interesting analysis on BMI-R back in September. It's well worth a read...

http://centreforaviation.com/analysi...ed-soon-128223

BApilotinsider

Perhaps not a well known name, but it could be a long, hard winter for many airlines.

http://www.businesstraveller.com/new...ses-operations

ANstar

Although the news is a week or so old

http://www.theguardian.com/business/...ls-exeter-jobs

It seems Flybe is really struggling at the moment... first they concede all their LGW slots & routes to easyjet and now they are cutting the rest of their network/bases.

Interesting to also see Rosedale Aviation selling their 48% stake in the company this month too - clever to sell now before it goes bust?