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-   -   Loganair for sale (https://www.flyertalk.com/forum/british-airways-executive-club/2096929-loganair-sale.html)

PZE Oct 9, 2022 2:31 am

Loganair for sale
 
The Sunday Times (paywall) and Daily Business are reporting that Loganair’s owners have appointed advisers to sell the airline. Apparently debt-free and profitable.

Given the increasing level of BA codeshare arrangements, might BA have any interest in acquiring Loganair rather than taking the risk that another owner takes it in an unhelpful direction? Or is competition between Loganair, Flybe, Eastern etc more in BA’s interest? I’ve no idea what the BA strategy for UK regional routes is now but it seems to have moved on from “not wanting to fly to places like Newquay”.

gw76 Oct 9, 2022 2:36 am

Can’t see BA taking this on…

stifle Oct 9, 2022 2:38 am

I doubt the Monopolies and Mergers Commission, or whatever it is called this week, would be overly pleased.

KARFA Oct 9, 2022 2:46 am

BA has shown no interest in running a regional airline ever since they sold off BA Connect to Flybe in 2007. Bearing in mind how difficult it appears to make money in that market, I doubt BA want to get back in to it now.

xenole Oct 9, 2022 3:22 am

If it's debt free and profitable, then that would say, at least at present, that is it making money.
Wouldn't there be any potential connecting traffic or slots of interest here?

KARFA Oct 9, 2022 3:25 am


Originally Posted by xenole (Post 34666438)
If it's debt free and profitable, then that would say, at least at present, that is it making money.
Wouldn't there be any potential connecting traffic or slots of interest here?

yes very much an exception. Next year they might lose money tho so it’s very up and down.

what slots would be of interest?

They can and already do connections via the codeshare agreement.

gw76 Oct 9, 2022 4:16 am

the perceived profitability is in one of their sectors only, what will be interesting is profitability when their cargo fleet and other ops are combined.
Im guessing won’t even pass anyone’s desk at BA.

USA_flyer Oct 9, 2022 5:43 am

BA corporate would be remiss in not looking into it even if it is a quick no.

KARFA Oct 9, 2022 6:10 am


Originally Posted by gw76 (Post 34666490)
the perceived profitability is in one of their sectors only, what will be interesting is profitability when their cargo fleet and other ops are combined.
Im guessing won’t even pass anyone’s desk at BA.

I get the impression anyone at Waterside who suggested it would be quietly taken out the back and shot :)

HIDDY Oct 9, 2022 6:41 am

Could be wrong but does Loganair not receive subsidies for operating certain routes and services? I can't imagine BA getting involved but you never know.

SxMan Oct 9, 2022 6:59 am

Oh dear – that could be a shame because it’s become my new favourite route from the south to Scotland since we’ve lost Gatwick to Edinburgh services and Gatwick to Glasgow seems to be down to one a day. The code share is really useful 😬🙉

T8191 Oct 9, 2022 8:12 am

Perhaps the Sturgeon would like to nationalise it?

https://timesofmalta.com/articles/vi...hake-1m.986285

skipness1E Oct 9, 2022 8:23 am

If they bought our Loganair, the legacy BA cost structure would push every LM route into loss overnight, that's what happened to the British Regional Jetstream operation. It became a loss maker on completion of the buy out. It is no one's interests for BA to buy Loganair.

bafan Oct 9, 2022 8:42 am


Originally Posted by skipness1E (Post 34666826)
If they bought our Loganair, the legacy BA cost structure would push every LM route into loss overnight, that's what happened to the British Regional Jetstream operation. It became a loss maker on completion of the buy out. It is no one's interests for BA to buy Loganair.

Surely not if it was taken into the new low cost Gatwick operation ?

PZE Oct 9, 2022 10:13 am


Originally Posted by HIDDY (Post 34666649)
Could be wrong but does Loganair not receive subsidies for operating certain routes and services? I can't imagine BA getting involved but you never know.

yes, quite a few PSO routes. I don’t know the details or how easy that makes it to guarantee profitability on those services. I think BA bid for the subsidised NQY-London route last year (awarded to Eastern in the end) so suggests that they aren’t opposed to that in principle - though many other good reasons for BA not to get involved mentioned in the thread.


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