Loganair for sale

Old Oct 9, 2022, 2:31 am
  #1  
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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”.
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Old Oct 9, 2022, 2:36 am
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Can’t see BA taking this on…
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Old Oct 9, 2022, 2:38 am
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I doubt the Monopolies and Mergers Commission, or whatever it is called this week, would be overly pleased.
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Old Oct 9, 2022, 2:46 am
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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.
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Old Oct 9, 2022, 3:22 am
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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?
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Old Oct 9, 2022, 3:25 am
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Originally Posted by xenole
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.
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Old Oct 9, 2022, 4:16 am
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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.
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Old Oct 9, 2022, 5:43 am
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BA corporate would be remiss in not looking into it even if it is a quick no.
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Old Oct 9, 2022, 6:10 am
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Originally Posted by gw76
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
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Old Oct 9, 2022, 6:41 am
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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.
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Old Oct 9, 2022, 6:59 am
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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 😬🙉
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Old Oct 9, 2022, 8:12 am
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Perhaps the Sturgeon would like to nationalise it?

https://timesofmalta.com/articles/vi...hake-1m.986285
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Old Oct 9, 2022, 8:23 am
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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.
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Old Oct 9, 2022, 8:42 am
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Originally Posted by skipness1E
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 ?
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Old Oct 9, 2022, 10:13 am
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Originally Posted by HIDDY
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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