Lufthansa has announced the sale of BMI (British Midland) to International Airlines Group (IAG) the owners of BA and Iberia.
http://www.bbc.co.uk/news/business-15588645
http://www.bbc.co.uk/news/business-15588645
BA buying bmi is not the competition disaster that some of you think. Apart from the domestic routes, there wasn't much overlap really. Bmi has tended to avoid BA in more recent years and has done a lot of flying on behalf of Lufthansa and its subsidiaries (Swiss, Brussels Airlines, Austrian Airlines, Lufthansa Italia). These routes will return to those airlines.
Lufthansa signed an agreement over 10 years ago which compelled them to buy bmi at a future date. Bmi was a very different airline back then and Lufthansa didn't want to buy the airline in 2008/9, but it had to. They haven't been able to turn the airline around in the midst of a recession and the future looked very bleak for bmi. Bmi lost its way a number of years ago, it failed at so many things (e.g USA routes from Manchester, India from Heathrow e.t.c) and changed routes and strategies constantly. The core of its business is now the Middle East from Heathrow, which has performed horrendously with the recent 'Arab spring'. Bmi was even suffering on its 'bread and butter' domestic routes, some flights were downgraded to 50 seater aircraft (from 140 seaters).
Lufthansa can't let bmi ruin their performance any longer. I reckon much of bmi's staff will transfer to BA, of course, there will be losses, but it's FAR better than shutting down bmi.
It's reported that bmi Regional was the strongest part of bmi and that a Scottish investment duo will buy that part of the business.
BmiBaby, who knows? BA won't be interested in the routes or the old 737s, they don't like low cost carriers full stop. They failed with their own LCC 'GO Fly' and they seem to be marketing themselves against Ryanair and easyJet nowadays. Personally, I think they will either be shut down or 'sold' to fellow low cost airline Jet2 (who have a base at home airport EMA).
Lufthansa signed an agreement over 10 years ago which compelled them to buy bmi at a future date. Bmi was a very different airline back then and Lufthansa didn't want to buy the airline in 2008/9, but it had to. They haven't been able to turn the airline around in the midst of a recession and the future looked very bleak for bmi. Bmi lost its way a number of years ago, it failed at so many things (e.g USA routes from Manchester, India from Heathrow e.t.c) and changed routes and strategies constantly. The core of its business is now the Middle East from Heathrow, which has performed horrendously with the recent 'Arab spring'. Bmi was even suffering on its 'bread and butter' domestic routes, some flights were downgraded to 50 seater aircraft (from 140 seaters).
As I understand it, slots held by BA at Heathrow now stand at just over 50%, up from around 45%.
Heathrow is 100% full and that is the problem for BA, they are massively slot constrained at their home airport in a way that competitors aren't.
Lufthansa want to focus on their core profit-making businesses, they've just got extra capacity at Frankfurt with a new runway. They've just started two new UK routes (Gatwick and Aberdeen) and I expect to see more - they will channel Star Alliance traffic away from Heathrow and through Frankfurt, Munich and Zurich (with Swiss). I predict they will have the last laugh despite the bmi failure.
Like you, I think that Lufthansa will have more success in the UK market without BMI. If I can connect to long-haul flights from a local airport, without having to negotiate public transport to get to Heathrow, then I will. KLM are already strong in this market, but it would be nice (as a Miles & More member) to see a stronger presence from the Star Alliance in the UK regional market.
It's just a shame the government don't seem to understand this. How on earth do they think that one of the worlds busiest airports is supposed to operate with just two runways is beyond me...
Yes, KLM Royal 'British' Airlines serve 14 UK airports and they do it very well. I am so impressed how they've made the relatively new Liverpool route work really well. They know the British regional market much better than BA and they know to succeed offering connections through Amsterdam from regional airports. A strategy that appeals to people. KLM Cityhopper employ British crews as well!
Swiss (operated by Helventic) have just launched a Cardiff and Bristol to Zurich route, so there's another SA regional route, in addition to Lufthansa's new Gatwick and Aberdeen routes. Expect to see more.
5% extra slots at Heathrow will assist BA. Virgin Atlantic will kick up a fuss, no doubt, although they are another airline who seem to have lost their way a bit (like bmi). They are not in terrible financial shape, but they're not doing great put it that way.
I wasn't aware of the new Swiss routes from Cardiff and Bristol. Might have to head down that way if I can afford it, presumably operated by a Fokker? I'm certainly hoping to see more, something from East Midlands wouldn't go amiss. I get the feeling there will soon be some gaps in the market there...
I did hear that Singapore Airlines were looking to sell their stake in Virgin Atlantic? I'm a bit out of the loop with the airline industry at the moment.
KLM's 'new' route to Liverpool? I thought one of speake's first routes was Amsterdam by KLM...
It's just a shame the government don't seem to understand this.
I believe so, but the stake is still held. What goes on at Virgin Atlantic is a bit of a bit of a mystery, they were apparently going to bid for bmi with funding from Etihad Airways.
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Restarted after many, many years. But yes you're right!
When you consider that Liverpool Airport's other customers nowadays are easyJet, Ryanair, Flybe (one route now) and WizzAir, it does mean something.
*You've got me on the subject of airlines now!*
Restarted after many, many years. But yes you're right!
When you consider that Liverpool Airport's other customers nowadays are easyJet, Ryanair, Flybe (one route now) and WizzAir, it does mean something.
*You've got me on the subject of airlines now!*
Have you noticed that EasyJet seem to be changing their business model to serve the more major reigonal airports, unlike ryanair that will serve the airport with the longest names.
ie. EasyJet are expanding at Manchester and FR pulled out saying it's too expensive and that they hate Manchester Airport Group, then moved most operations from Manchester to East Midlands... (Now if you get that, you know too much)
ie. EasyJet are expanding at Manchester and FR pulled out saying it's too expensive and that they hate Manchester Airport Group, then moved most operations from Manchester to East Midlands... (Now if you get that, you know too much)
ie. EasyJet are expanding at Manchester and FR pulled out saying it's too expensive and that they hate Manchester Airport Group, then moved most operations from Manchester to East Midlands... (Now if you get that, you know too much)
I get it, it's a MAG group airport
Ryanair base opened yesterday at Manchester Airport! See HERE. Don't trust a word Micheal O'Leary says.
I think that despite competing in the same sector, EasyJet and Ryanair are very different animals. I see EZY as the more customer focused of the two, while FR are still very much the cut-throat competitor, not giving a stuff about the customers because if the flights are only 99p, people are going to come back again.
After pulling all but the dublin route and refusing to move to T2 because of the longer routes, they move to T2 and open 20 new routes?
I think that despite competing in the same sector, EasyJet and Ryanair are very different animals. I see EZY as the more customer focused of the two, while FR are still very much the cut-throat competitor, not giving a stuff about the customers because if the flights are only 99p, people are going to come back again.
Spot on. Ryanair seem to delight in making it difficult to travel with them, whereas Easyjet acknowledge business travellers and try to build flexibility into their fare structure to accomodate this.
I'd fly with Ryanair if I didnt depend 100% on being somewhere, but for business travel I just dont need the hassle. Not snobbery at all, just a pragmatic approach to travel.
And tbh, it does seem that EZY have more reasonable charges for the likes of luggage than that former BA operation that is now partnered with them FlyBE, I'd expect Jet2 to become more popular with tourists thanks to baggage alowances and when bmi dissapear, and possibly bmi baby, I'd expect to see Jet2 picking up the scrapps at EMA.
Flybe is more of a business regional carrier and they've worked out that they can charge quite high fees for baggage and not upset too many people. Despite profit warnings, they're a healthy airline and have a future ahead of them, especially with their new venture, Flybe Nordic.
Owned c10% by BA I believe, as part of the sale (OK, giveaway) of BA's regional business to them a few years back.