Lufthansa interested in taking over BMI

TallDutch · Post by **TallDutch** » 01 May 2007, 10:58

Lufthansa, the German airline has said it would consider any proposal by the chairman of BMI British Midland to take over the Castle Donington-based business.

Following the scrapping of restrictions on Europe-US flights last month, Lufthansa, which has a 30 per cent stake in BMI, has said it would consider buying Sir Michael Bishop's shares and operate services to America.

Stephen Gemkow, Lufthansa's chief finance officer, is reported to have said that the airline would certainly look at Sir Michael's majority shareholding should he want to sell.

However, Sir Michael, pictured, has said he was not pursuing any deals to sell his controlling stake in BMI.

Sir Michael has an option to sell his stake to the Germans until June 2009 and Lufthansa has a buy option from the end of 2008.

He said he was in close consultation with Lufthansa and United Airlines, his partners in the Star global airline alliance, on his plans to launch BMI transatlantic services from Heathrow from March next year.

The open skies rules will from next March end many of the restrictions on flights to the US. BMI chief executive Nigel Turner hailed last month's decision as "a landmark in the history of air links between Europe and the US".

http://www.thisisderbyshire.co.uk/displ ... eId=126185

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Edit: No need to put the title in capitals

euroflyer · Post by **euroflyer** » 01 May 2007, 18:08

Could be an interesting move by LH to take ober bmi and see if they can bring some real competitionto BA at routes from LHR across the Atlantic.

However, another scenario might be possible as well: LH just building this as a threat to BA and than suddenly agree with BA to another solution: LH allows BA to take over bmi and shelter their home market, whereas BA gives green light for a takeover of Iberia by LH ....

bkonner · Post by **bkonner** » 02 May 2007, 02:29

There is not a chance that Brussels would every allow this. This would be a disaster for air travelers out of the UK.

Bill

Post by **sn26567** » 02 May 2007, 09:32

It seems iondeed that LH has a big shopping list. After Iberia, bmi? The European regumatory authorities should have a closer look as a monopoly is building up.

They will not allow BA to take over bmi: there would not be any serious competition left in the UK. Therefore, LH may be allowed to take over bmi, but then the Iberia deal could be seriously hampered for LH, opening the way for BA which already owns some 9% of Iberia.

The big manoeuvres are only starting...

sama91 · Post by **sama91** » 02 May 2007, 10:02

i think this would a smart move by Lufthansa. BMI probably has other plans then!

ryanCX · Post by **ryanCX** » 02 May 2007, 13:33

Looking at Lufthansa's shopping list, it feels its won't be long before it surpasses AF-KLM to be the biggest airline in Europe. BMI actually would make a sound investment given the number of Heathrow slots it owns, something that'll be in even greater demand after the open-sky agreement. Iberia or BMI, BA is in for a ruffle.

euroflyer · Post by **euroflyer** » 02 May 2007, 15:05

sn26567 wrote:They will not allow BA to take over bmi: there would not be any serious competition left in the UK.

Not too sure about this. It might be true for the Business traveller community to a certain extent. But has anybody an idea what percentage share of the UK market the LCC have today already (Easy, Ryan, even Air Berlin are all operating a lot of domestic as well as European flights over there)? I have no figures but I assume it is a quite big piece of the cake.
And BA always publicly states they have a much smaller percentage of slots at their home base (LHR) than for example AF in CDG or LH in FRA and MUC.

fcw · Post by **fcw** » 02 May 2007, 15:28

euroflyer wrote:
sn26567 wrote:They will not allow BA to take over bmi: there would not be any serious competition left in the UK.
Not too sure about this. It might be true for the Business traveller community to a certain extent. But has anybody an idea what percentage share of the UK market the LCC have today already (Easy, Ryan, even Air Berlin are all operating a lot of domestic as well as European flights over there)? I have no figures but I assume it is a quite big piece of the cake.
And BA always publicly states they have a much smaller percentage of slots at their home base (LHR) than for example AF in CDG or LH in FRA and MUC.

We are talking about BMI mainline (not Baby or Regional) which is mainly LONG HAUL out of LHR, euroflyer.

euroflyer · Post by **euroflyer** » 02 May 2007, 17:08

fcw wrote: We are talking about BMI mainline (not Baby or Regional) which is mainly LONG HAUL out of LHR, euroflyer.

The whole bmi fleet consists of 42 planes as of today (if you believe their own homepage). A total of 3 (in words: three) are A330s for long haul flights, the rest (which makes 39) are A319/320/321 and Embraer 135/145. Is that something you call "mainly LONG HAUL"

I have just checked their summer 07 timetable again and the ONLY flights out of LHR they offer (on their own metal) which you maybe could call long haul are to Riyadh and Jeddah. Every other flight out of LHR to non-European destinations are codeshare flights of *Alliance partners.

Are you sure we are talking of the same bmi here, fcw

jet2uk · Post by **jet2uk** » 04 May 2007, 10:31

don't foget moscow as well.

Buzz · Post by **Buzz** » 04 May 2007, 12:29

jet2uk wrote:don't foget moscow as well.

Moscow is part of the new focus on 'mid-haul' destinations, but is flown with an A32s aircraft. I wouldn't consider it long haul...

Aviation24.be

Lufthansa interested in taking over BMI

Lufthansa interested in taking over BMI

The EU will never allow BA to take over BMI