LH to take 50% share of BMI
 

As quoted from the BBC.CO.UK

"UK airline BMI is being taken over by Germany's Lufthansa.

Lufthansa, which already owns a 30% stake in BMI minus one share, is buying the 50% of the company owned by BMI chairman Sir Michael Bishop.

The deal will give Lufthansa control of more flights from London Heathrow airport than any other airline except British Airways.

The remaining 20% of BMI is currently owned by Sweden-based Scandinavian Airlines (SAS).

Lufthansa said it intends to complete the deal by 16 January. "

http://news.bbc.co.uk/1/hi/business/7697261.stm

BMI will quickly be transformed into a long-haul carrier using the LHR slots mentioned already. Makes more sense to use the scarce production capacity LHR offers for 250+ seats ( maybe even BBJ's ) going on interconti flights than an A 319 paddling over the channel to Schiphol, if it does not work, you can always lease the slots to desperate American airlines or sell to airlines from the Near East. :D

Heads up to Bishop, though, although known as the Whiner since years, he was smart enough to exit at a late, but still manageable stage.

Certainly always hard to sell your lifework.

Instead of critisizing the Wolf in Austria, he should be praised as the Austrian to look up to :confused:

Sorry, quite lost with this statement. My understanding is that SMB comes from a British/Australian background so not sure where your comment re Austria comes in. :confused:

For M&M lurkers, you might be better off reading the BD board thread:

http://www.flyertalk.com/forum/showthread.php?t=882694

The LHR to USA market hasn't been a stellar success for all the new entrants. Entering the bloodbath over the north Atlantic right now with major additional capacity seems like a perfect way to lose money. Especially as LH already covers most of the US with their revenue share with United, which they will surely extend to BMI. The only really important white sport right now is New York which should be covered by CO join *A and the LH/UA joint venture next year.

</armchairceo>

This is a reference to the Wolf.

That's what caught my eye in this article.

Oh, and a lil question: Who's gonna buy OS now?

LH is going to get it for free and without debt if they wait long enough..

Doesn't this also mean that LH will buy out SK?

uhh, no. Why? LH HAS to buy BD because of the put option that SMB had when LH took a stake in BD in 1999 and which he has now exercised. There is no comparable situation for SK.

:D:D:D:D

Still. There is a Competition Policy Directorate in the EU who dot dot dot.;)

True, but no new entrant had the capacity to compete effectively with the dominant players, as they could only gather the odd pair of slots or two (look at the pathetic attempts by Skyteam airlines). BD has over 10% of LHR slots, which means that LH/BD could make a much more serious competitor. That said, the timing is rather unfortunate given the current situation. But long-term, it has rather better prospects.

As far as NYC is concerned, the arguments are the same except stronger. It will be especially difficult to enter this market at this point, given the very strong dominance of BA and VS on that market. If I were them, this would NOT be where I would start from.

I would assume so. That would give LH the possibility to do whatever they want.

...asset stripping seems like one option ...

hopefully ^

Why would they want to have SK as a minority owner? I'm sure you also know that SK need money. A lot of it in fact. So much that LH are considered likely to buy SK just like silversurfer hinted.