Lufthansa plans to sell BMI

[Flanker]

I'm hearing rumors that VS may be merged with BMI in a shares swap deal with LH, to create a strong BA competitor and Star hub at LHR.

[RoMax]

I'm hearing rumors that VS may be merged with BMI in a shares swap deal with LH, to create a strong BA competitor and Star hub at LHR.

Could be true. SRB reported this week that Virgin would announce very soon that they will join a certain alliance. That could have something to do with BMI/LH. Virgin could use BMI to feed their transatlantic flights and Virgin is already owned for 49% by SQ. So I think it's highly possible that Virgin will soon announce that they will join Star Alliance.

Btw, a "shares swap deal"... could this mean that LH will take a certain share in Virgin in return for BMI?

[cnc]

BMI just sold 6 pairs of LHR slots to IAG

[jumpjet]

Does anyone have any ideas which new routes British Airways have earmarked for these slots - they badly need new routes espcically to china and the far east to keep up with Lufthansa/Air France

[sn26567]

BMI just sold 6 pairs of LHR slots to IAG

This is unbelievable. Wasn't there any airline member of the Star Alliance that could have purchased these slots? This a precious gift to a competing airline and alliance!

[RoMax]

This is unbelievable. Wasn't there any airline member of the Star Alliance that could have purchased these slots? This a precious gift to a competing airline and alliance!

Probably just the airline that wanted to pay the most for these slots and the only reason LH (BD) sold these slots is to get some money, fast.
BA badly needs these slots, so if BD needs money very fast they just sell some slot pairs to BA for A LOT of money. If this would hurt LH they wouldn't do it. They are not perfect, but not stupid either.

[sn26567]

Lufthansa now also mulls selling its stake in JetBlue. Al least, its CEO does not rule out such a sale, because the strategic importance of JetBlue has diminished for LH.

Lufthansa currently owns 15.9% of JetBlue.

[sn26567]

Having sold some slots at LHR, bmi is now cutting frequencies from LHR to Manchester and Edinburgh.

According to flybmi.com the cuts start on October 30. The number of Edinburgh services is cut from a maximum of eight to six a day between Monday and Friday. The Saturday frequency drops from six to four while on Sundays bmi will operate five flights to Edinburgh as against seven at present.

In the case of Manchester, Monday to Friday frequency drops from a maximum of eight to four daily flights while there will be three daily services at weekends as against four at present.

Source: ABTN

[sn26567]

Converging sources say that British Airways, or rather IAG, has approached Lufthansa with the aim to buy bmi.

I am not sure that the European Commission would allow such a merger, which would have IAG dominate the UK market. Since Virgin Atlantic is also said to be interested in bmi, this would seem a more logical choice in order to maintain competition in the UK.

[cnc]

Converging sources say that British Airways, or rather IAG, has approached Lufthansa with the aim to buy bmi.

I am not sure that the European Commission would allow such a merger, which would have IAG dominate the UK market.

the issue is LHR, the UK market still has enough competition

[sn26567]

Converging sources say that British Airways, or rather IAG, has approached Lufthansa with the aim to buy bmi.

Confirmation from Reuters press agency: http://aggbot.com/Business-News/article/15063311

bmi's biggest asset is indeed itsb slots in LHR, 6 of which have already been sold to BA for an undisclosed amount.

[ticketbuyer]

Reuters reports,
Abu Dhabi's Etihad Airways is in talks with Britain's Virgin Atlantic to join the UK carrier in its bid for bmi, the loss-making unit of Lufthansa.

Furthermore,
The Financial Times reported that Etihad is also looking at buying a stake in Irish carrier Aer Lingus.

Things are getting interesting at LHR

[Charlie Roy]

That Aer Lingus story:
http://www.rte.ie/news/2011/1017/aerlin ... iness.html

In general, it seems like they have their eyes on a lot of Heathrow slots...

[sn26567]

bmi faces break-up in battle for Heathrow

Deutsche Lufthansa AG may have to break up its British bmi unit to sell the underperforming carrier, as larger airlines eye its access at Heathrow airport and smaller players look to pick off its budget and regional operations.

While it would prefer to sell the whole unit than break it up, managers have not ruled out a partial sale -- and Lufthansa sold six of bmi's daily take-off and landing slots to British Airways last month.

BA, which is keen on bmi's Heathrow slots, is not interested in owning or operating bmi regional or bmibaby. Smaller UK airlines could come in the frame for those.

Flybe is the most logical acquirer of bmi regional. There is only one other UK regional airline, Eastern, which could be a potential buyer.

With 9 percent of the take-off and landing slots, bmi is the second-largest carrier at Heathrow, Europe's busiest airport, which is now operating at full capacity after plans to build a third runway were scrapped. These slots are estimated to be worth around 460 million euros.

Interested suitors include BA and Iberia parent IAG, and Virgin Atlantic.

Etihad Airways is discussing the possibility of making a joint bid with Virgin, according to sources in the United Arab Emirates.

More from Reuters: http://www.reuters.com/article/2011/10/ ... LZ20111018

[sn26567]

Could a new Scottish airline could be born from the sale of bmi? Some people think so: bmi Regional, which owns Embraer 135 &nd 145 regional aircraft and is headquartered in Aberdeen, could be spun off to become the basis for a new Scottish airline, enabling Scots to fly directly to continental Europe and by-passing congested London Heathrow.

Interesting article on the BBC: http://bbc.in/tKEVr3

[RoMax]

That's possible, but not sure. On thing is sure, there are airlines interested in BMI mainline and there are airlines interested in BMI Regional and BMIbaby. But there is not airline that is interested in both.

While BA and Virgin/Etihad are going behind BMI (mainline), Flybe and Eastern Airways are named as "being interested in" taking over BMI Regional.

I wonder what will happen with the BRU-UK routes operated by BMI Regional, both their own routes and the routes operated for SN.
These routes seem too important for SN to "give away" to another airline, at least if that airline is not a partner airline.

[RoMax]

Apparently UK-investors are indeed very close to buy BMI Regional

The mainline carrier said it "envisaged" that a transaction document for the sale "will be signed shortly" with a view to completing the divestment by the end of the year.It said the sale would be in the form of shares of BMI Regional, the airline's fleet and route network, and the continued employment of personnel.

While the proposed buyer has not been identified, BMI said it was an investor group "previously associated with the regional business" and that discussions were "advanced".

BMI Regional would continue to fly, for a period, under its current brand and IATA designator code and the current winter 2011-12 schedule "will continue as planned" with "no major network changes" expected for summer 2012.

"The intended sale of BMI Regional is part of the strategic review of BMI," said BMI chief Wolfgang Prock-Schauer.

"It is our goal to find sustainable solutions for all parts of the BMI business and we, as well as the shareholder, continue to assess options."

No financial details have been disclosed. BMI said the potential investor is "keen to consult with staff" and that this would begin soon, in order to complete the transaction as soon as possible.

"The new owner plans to continue the airline as an independent entity based in Aberdeen and to further develop the regional network in both the UK and Europe," it added.

"Employment prospects will be enhanced through a planned growth strategy."

http://www.flightglobal.com/news/articles/lufthansa-group-close-to-selling-bmi-regional-364031/

[sn26567]

Similar news from ABTN: http://www.abtn.co.uk/news/2816525-buye ... i-regional

Buyer found for bmi Regional

"Advanced discussions” are underway for a UK-based investor group to buy Bmi’s Aberdeen-based subsidiary Bmi Regional.

The move is likely to mean a break-up for Bmi, leaving its international operations for another party to buy from its owner Lufthansa, along with low-cost subsidiary Bmibaby.

British Airways and Virgin Atlantic have both publicly expressed their interest in Bmi, in particular for its slots at Heathrow.

The investors for Bmi Regional remain unnamed, but Bmi said in a statement that the group had been “previously associated with the regional business”.

All assets of Bmi Regional would be included in the sale, including a fleet of some 14 Embraer aircraft, existing regional route network and staff.

The two parties hope to have the sale completed by the end of December.

For an “interim period” Bmi Regional will continue to fly under its existing brand and BD flight code.

Current schedules for the winter 2011/12 schedule will continue as planned, and “no major network changes are envisaged” for summer 2012, said Bmi.

Bmi Regional operates from UK regional airports, including Edinburgh, Glasgow, Leeds Bradford, Manchester and East Midlands, to British and European destinations.

[sn26567]

IAG, the parent of Bristish Airways and Iberia, has tabled a proposal to purchase BMI, either a full takeover or only some assets like the prized slots in London Heathrow.

The discussions with LH are only in a preliminary stage.

Virgin Atlantic has not yet ruled out its own bid.

More from Sky News: http://blogs.news.sky.com/kleinman/Post ... 90b7f450e0

[sn26567]

Lufthansa May Have Deal to Sell BMI to BA

According to Blommberg, Deutsche Lufthansa AG has reached a draft accord to sell its U.K.-based BMI unit to British Airways parent IAG and the carriers are engaged in final negotiations on the deal, two people with knowledge of the plan said today.

This sale comes as a blow to Richard Branson, owner of Virgin Atlantic.

BMI Regional is not included in the deal and is to be sold to British investors.

More from Bloomberg: http://www.bloomberg.com/news/2011-11-0 ... rways.html