BMI losses= £650 million over 4 years?
Join Date: May 2003
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Have to agree with G-AWZK. The Arab Spring ? Surely this only affected BMI's routes to Libya (which it had not actually started - I don't believe) and Cairo. If this was a major factor in BMI's demise then, I'm sorry - a load of BS
Besides, I was travelling to Tunis this summer, several times, another one of the "Arab Spring" destinations, with BA, flight was full in both directions, in a clapped out 737.
I actually welcome BA's move to buy BMI. The only thing that worries me is the integration. I can see with the Iberia or sorts "merger", integration must be a swear word, because many months on, they have a very long way to go, particularly in terms of service quality.
Besides, I was travelling to Tunis this summer, several times, another one of the "Arab Spring" destinations, with BA, flight was full in both directions, in a clapped out 737.
I actually welcome BA's move to buy BMI. The only thing that worries me is the integration. I can see with the Iberia or sorts "merger", integration must be a swear word, because many months on, they have a very long way to go, particularly in terms of service quality.
Join Date: Nov 2006
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I tuned into the bmi's threads on here to see was there any mention of the Virgin Money take over of Northern Rock from the goverment. Richard Bransons name all over it and the price being paid is £747million.
Was a symbolic figure, 747!!!
I am not sure how that it will materialise but I wouldnt be surprised 'if' this deal with the government has wider ranging consequences i.e. Virgin not out of the race for bmi.. Although there is a good case for BA/IAG taking over bmi, given that total slot holding at LHR for BA wont be as much as LH at FRA or KL at AMS, doesnt mean that the competition authority wont rule on the take over not being in the interest of the consumer.
What does anybody else think?
EI-BUD
Was a symbolic figure, 747!!!
I am not sure how that it will materialise but I wouldnt be surprised 'if' this deal with the government has wider ranging consequences i.e. Virgin not out of the race for bmi.. Although there is a good case for BA/IAG taking over bmi, given that total slot holding at LHR for BA wont be as much as LH at FRA or KL at AMS, doesnt mean that the competition authority wont rule on the take over not being in the interest of the consumer.
What does anybody else think?
EI-BUD
Join Date: Feb 2001
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I travelled to Teheran on BMI in late February just after Libya kicked off. The inflight magazine contained a lot of publicity about their new service to Libya and a couple of full page advertisements for property in this 'stable and prosperous Mediterranean paradise.' Given that aircraft and crews would have been deployed and scheduled for the operations, contracts procured, and so on, they would have taken a fair hit on that.
They upgraded their distribution system about 6 years ago, at considerable expense, so it is not correct to say there was no investment in IT, when they switched to Amadeus.
As I've said earlier, their main failure was lack of identity both for themselves and their potential customers. I intend to keep using them to the bitter end, and have quite a few forward bookings.
They upgraded their distribution system about 6 years ago, at considerable expense, so it is not correct to say there was no investment in IT, when they switched to Amadeus.
As I've said earlier, their main failure was lack of identity both for themselves and their potential customers. I intend to keep using them to the bitter end, and have quite a few forward bookings.
Join Date: May 2005
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I have said before I don't think Virgin atlantic or Vigin Group have the desire to take on the enormous mess that is Bmi. They will be very happy to pck up a few slots out of it though.
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22/04 - take a brand identity crisis like BMI and slap Virgin on it with the Virgin umph. Strip back flights like MAN>>LHR and BHX>>LHR. Train to London, fly Virgin, but they could still fly it I suppose. I think a Virgin service would sell itself a lot better (unfortunately) than a BMI service. Branson won't put himself at risk. He's made the USA work, he's made Australia work. Now is his change to make the UK/EU work.
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Air/rail integration works well at several major hubs including FRA, ZRH, AMS. The airport station needs to be properly integrated into long distance, international, and regional services on the national networks. In that respect, the Heathrow Express is risible as it is an overpriced standalone which offers little to anyone unless they want to travel to/from the western perimeter of London.
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I tuned into the bmi's threads on here to see was there any mention of the Virgin Money take over of Northern Rock from the goverment. Richard Bransons name all over it and the price being paid is £747million.
Was a symbolic figure, 747!!!
I am not sure how that it will materialise but I wouldnt be surprised 'if' this deal with the government has wider ranging consequences i.e. Virgin not out of the race for bmi.. Although there is a good case for BA/IAG taking over bmi, given that total slot holding at LHR for BA wont be as much as LH at FRA or KL at AMS, doesnt mean that the competition authority wont rule on the take over not being in the interest of the consumer.
What does anybody else think?
EI-BUD
Was a symbolic figure, 747!!!
I am not sure how that it will materialise but I wouldnt be surprised 'if' this deal with the government has wider ranging consequences i.e. Virgin not out of the race for bmi.. Although there is a good case for BA/IAG taking over bmi, given that total slot holding at LHR for BA wont be as much as LH at FRA or KL at AMS, doesnt mean that the competition authority wont rule on the take over not being in the interest of the consumer.
What does anybody else think?
EI-BUD
I think that says enough about Virgin's ability to bankroll large acquisitions.
Join Date: Apr 2004
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They upgraded their distribution system about 6 years ago, at considerable expense, so it is not correct to say there was no investment in IT, when they switched to Amadeus.
The easiest way to describe bmi, is penny wise and pound foolish. Desktop systems hadn't been renewed for years, for a company that had 3000+ employees there were more than 10,000 access databases - none of which were connected to each other. Data was lost, misplaced and even the same department people were working unkowingly against each other. There was poor planning and management at almost every level of the company, not because managers lacked the skills, but they lacked the information to develop strategies and tactics to help the company grow and develop. There was no centralised management information system and by the time a solution was found it was way too late.
Having the head office 200 miles north of the company's centre of gravity was just barking and a perfect example of why the company ultimately couldn't be turned around
Thread Starter
Join Date: Feb 2009
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I still fail to see why BMI can't return to it's home territory of the midlands.
They upgraded their distribution system about 6 years ago, at considerable expense, so it is not correct to say there was no investment in IT, when they switched to Amadeus.
Additionally the website would quite often fail when you tried to book from a foreign country using that method.
I speak from experience using BD's AMM service at least 4 times a year.
Two possibilities if IAG acquire bmi.
- Integrate operations, seniority lists, etc.
- Run bmi as a BA codeshare with aircraft in BA livery. This would probably be domestic routes.
Existing BA domestic fleet & slots would be switched to short haul, boosting frequencies with smaller aircraft, possibly restarting Cologne etc. Switch slots to long haul (and upsize / reduce frequency) as required over a period of years.
Industrial relations & political factors may determine which but even given the latter expect BD's cost base to rise to close to that of BA after pay negotiations.
Either way most bmi staff would switch to IAG either working for BA mainline or for a subsidiary.
However, whilst the requirement to divest a small number of slots to VS etc would not be a problem, anything that would drastically reduce the size of the operation would cause problems as BA/IAG would probably only wish to take on the number of staff pro rata to the number of slots acquired. Of course VS could also take on staff. This then raises questions about merging seniority lists, etc.
Lots to think about...
- Integrate operations, seniority lists, etc.
- Run bmi as a BA codeshare with aircraft in BA livery. This would probably be domestic routes.
Existing BA domestic fleet & slots would be switched to short haul, boosting frequencies with smaller aircraft, possibly restarting Cologne etc. Switch slots to long haul (and upsize / reduce frequency) as required over a period of years.
Industrial relations & political factors may determine which but even given the latter expect BD's cost base to rise to close to that of BA after pay negotiations.
Either way most bmi staff would switch to IAG either working for BA mainline or for a subsidiary.
However, whilst the requirement to divest a small number of slots to VS etc would not be a problem, anything that would drastically reduce the size of the operation would cause problems as BA/IAG would probably only wish to take on the number of staff pro rata to the number of slots acquired. Of course VS could also take on staff. This then raises questions about merging seniority lists, etc.
Lots to think about...
Join Date: May 2008
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BMI Pension Scheme
Sunday Times reports; -
"Pensions Regulator to meet Unions over future of BMI Pension Scheme"
"It is thought the German Carrier has agreed to keep the scheme, which has a £183m deficit, in the event of a sale".
Presumably this refers to the Final Salary scheme, is there a newer Defined Contribution Scheme?
Willie Walsh has made lots of negative noises about taking on pension schemes, If this report is true then Lufthansa are left with the funding of this pension (over many years I concede).
This will presumably be factored into the deal price and Lufthansa could eliminate or drastically reduce the pension deficit?
"Pensions Regulator to meet Unions over future of BMI Pension Scheme"
"It is thought the German Carrier has agreed to keep the scheme, which has a £183m deficit, in the event of a sale".
Presumably this refers to the Final Salary scheme, is there a newer Defined Contribution Scheme?
Willie Walsh has made lots of negative noises about taking on pension schemes, If this report is true then Lufthansa are left with the funding of this pension (over many years I concede).
This will presumably be factored into the deal price and Lufthansa could eliminate or drastically reduce the pension deficit?
