BMI Bid Approved

Just announced on BBC that EU has given approval for IAG to buy BMI but it must give up 14 slots a day.

Further condition is that these MUST be used for UK Domestic routes.

BBC report

And this is interesting too

It was also dependent on IAG committing to carry connecting passengers to feed the long-haul flights of competing airlines out of London Heathrow.

Just announced on BBC that EU has given approval for IAG to buy BMI but it must give up 14 slots a day.

Further condition is that these MUST be used for UK Domestic routes.

BBC report

And this is interesting too

It was also dependent on IAG committing to carry connecting passengers to feed the long-haul flights of competing airlines out of London Heathrow.

Was unfortunate enough to be in a meeting with the BA ops manager when the news broke; I almost drowned in his smugness

[Darren Wheeler]

I'll admit that I'm not too hot on domestic routes but other than BA and BMI, who else flies domestic out of LHR?

I don't know why VS allowed itself to be distracted by this, and all the bluster that followed. Yes it's bad for VS, but the answer is either to put in a competitive bid, or focus elsewhere. If VS could raise the money at the level of its bid, why not use that to grow?

Otherwise it's good for BA and the BMI staff who's future is more secure, not forgetting all those that will lose their jobs in duplicative functions.

just received email from BMI Diamond Club, says they plan to operate summer schedule as normal, and you can continue to earn/spend Diamond club miles during this period

I'll admit that I'm not too hot on domestic routes but other than BA and BMI, who else flies domestic out of LHR?

You know, I'm actually stumped there...

I'll admit that I'm not too hot on domestic routes but other than BA and BMI, who else flies domestic out of LHR?

You know, I'm actually stumped there...

As am I and I have just re-read the BBC report and it's not made explicit there but the chap they interviewd earlier clearly said 'used for UK routes'

Now of course that could mean say an EDI-LHR-XXX routing.

Proably be in the detailed EU ruling but someone else can read that !

Details of the slots that IAG may have to forego (if there are willing entrants) are listed in this IAG release to the stock exchange:

http://www.iairgroup.com/phoenix.zhtml? ... highlight=

I can't see Virgin going for the domestic slots but maybe Moscow and Cairo?

Details of the slots that IAG may have to forego (if there are willing entrants) are listed in this IAG release to the stock exchange:

http://www.iairgroup.com/phoenix.zhtml? ... highlight=

I can't see Virgin going for the domestic slots but maybe Moscow and Cairo?

Do keep in mind that any slots that are opened up at any UK airport have a 15% share reserved for new carriers - so that 14 slots is more like 12 when all is said and done.

[mitchja]

Also just had the email from BMI. Be interesting to see how they integrate DC with Exec Club.

Here's hoping they match the status as I'm still Silver with BMI

Also just had the email from BMI. Be interesting to see how they integrate DC with Exec Club.

Here's hoping they match the status as I'm still Silver with BMI

Was thinking the same thing.

What this does do is now totally knacker my departments planning scheme for T2 airline movements...which is irritating considering they were finalised three weeks ago and now will need binning.

What I suspect will happen is that BA will now put pressure on BAA to hand them a portion of T2 for the additional space they will now take up. I just hope it is better managed than the Iberia move last Sunday, which was a bit of a botch....

Also just had the email from BMI. Be interesting to see how they integrate DC with Exec Club.

Here's hoping they match the status as I'm still Silver with BMI

I think there is already a 'tell all those BMI elites to XXXX off theres not enough room in the lounge or reward flights as it is' threads on flyer talk

[mitchja]

True, especially as BMI have been status matching anything that resembles anything gold or silver for the last few years now!!!

[preiffer]

Seriously doubt it. BMI Gold is BARELY BA Silver in real terms.

Maybe they'll do a Gold = Silver (BA) and Silver = Bronze (BA)

If they do a like-for-like, they'd be idiots. And that's coming from a decent Diamond Club member myself...

Reading between the lines of the Diamond Club it seems that it will be wound down rather than fully merged into BA.

Willie Walsh was evidently in pugnacious mood yesterday when commenting on Virgin's promise to launch flights between London & Scotland:

http://www.guardian.co.uk/business/2012 ... mi-branson

Reading between the lines of the Diamond Club it seems that it will be wound down rather than fully merged into BA.

Willie Walsh was evidently in pugnacious mood yesterday when commenting on Virgin's promise to launch flights between London & Scotland:

http://www.guardian.co.uk/business/2012 ... mi-branson

I usually find Willie Walsh unbearable, but credit where it's due, he's really knocked VS for six with his handling of the whole affair.

Slot assignment at LHR is usually a bloodbath (hence why BAA stay out of it) - and Walsh seems far more wiling to fight tooth and nail for the success of his airlines. Maybe it's just me, but the VS leadership has seemed more and more insipid of late; denouncing IAGs actions as unfair and bullish, but failing to recognise an unfortunate truth - that the airline industry is one that requires such characteristics to in abundance to ensure success.

VS is at serious risk of losing the plot if it doesn't start fighting a bit harder for what it wants. The sooner SRB and Ridgeway realise the need to fight a bit dirty, then the more chance the airline has.

Any idea when the reciprocal arrangement with VS will end?

Was hoping to earn some VS miles with BMI flight this summer.

The Economist isn't happy...

http://www.economist.com/blogs/gulliver ... ba-and-bmi

Also, what airline is going to use those domestic slots at LHR? They would surely never make a profit!

Also BA are back in Belfast!

Could you make money flying once daily with a A330 to the Scottish airports? Could such a large a/c be filled on those routes?

[preiffer]

Hmmm - the challenge with domestic business routes is that frequency beats capacity 9 times out of 10. It's down to when my meeting is, over whether the seat is £10 cheaper...

That's the problem, and these days flying small planes (even if you have them in your fleet...) into LHR is not practical or very profitable as bmi have demonstrated.

perhaps FlyBe could take over a couple of routes from BD they could take on MAN as they have a large base there and possibly EDI or GLA.
they are the only other UK airline flying domestic (other than Easy Jet and Ryanair) who are in a position to compete with BA and have the fleet of small efficient aircraft to do it.

[preiffer]

But I'm not sure they'd be as efficient/profitable if LHR was their base/landing fee basis...!

But I'm not sure they'd be as efficient/profitable if LHR was their base/landing fee basis...!

Since BA own a bit of FlyBE I think they could make it work...

Am intrigued by BA having to feed other carriers too: this seems like they will have to provide domestic connections on the same basis as they would BA > BA.