V-Flyer

As reported in the Telegraph yesterday:

http://www.telegraph.co.uk/finance/news ... ights.html

I wonder - if this does ever happen - if we'll see a 'Virgin UK', similar to that of Virgin America, or if it will fall in to the Virgin Atlantic brand?

Add some to/from Gatwick as well and I'll be a very happy bunny y) y)

David

If they do I can't see it working although it would be good to have another route to earn miles!

Since BA have to make their domestic flights available as feeder flights to competitors, then perhaps *gasp* a codeshare is the answer?

The cynic in me says they are running with the line "All 12 slots should go to one operator" (which is highly unlikely) so they have a reason for not bidding for individual slot pairs.

nguba wrote:The cynic in me says they are running with the line "All 12 slots should go to one operator" (which is highly unlikely) so they have a reason for not bidding for individual slot pairs.

I disagree but am still cynical - but more about BA's motives here.

Running a domestic operation with 12 daily slots is going to be tough - I wonder if it was IAG or OFT who suggested this? I am sure IAG still can't get over how easy it was.

With BA feeding AA, IB, BA and oneworld at LHR (BA's GLA operation using 9 pairs alone!), anyone selling UK domestic flights will need to have deep pockets. BMI couldn't do it feeding StarAlliance, why would VS succeed?

Sealink wrote:Running a domestic operation with 12 daily slots is going to be tough - I wonder if it was IAG or OFT who suggested this? I am sure IAG still can't get over how easy it was.

With BA feeding AA, IB, BA and oneworld at LHR (BA's GLA operation using 9 pairs alone!), anyone selling UK domestic flights will need to have deep pockets. BMI couldn't do it feeding StarAlliance, why would VS succeed?

I don't think anyone believes VS is serious about starting domestic routes. But the slot remedies offered by IAG and agreed by the EU are entirely consistent with the previous approach of the EU to other mergers and were expected by everyone with an interest in this.

What was never going to happen was a straight haircut of slots for the benefit of one vocal competitor out of 90-odd operators at LHR which isn't prepared to go out into the market and actually buy slots when they become available.

Virgin may not be happy about this but none of it came out of the blue.

So the EU strategy favours the dominant player, hence my cynicism at the whole thing. I think VS have a right to be aggrieved.

So how would a domestic operation work if the slots are divided between 2 or 3 carriers?

Sealink wrote:So the EU strategy favours the dominant player, hence my cynicism at the whole thing. I think VS have a right to be aggrieved.

The EU has largely allowed market forces to operate.

The market decided that there wasn't room for a medium sized short/medium haul carrier to sit between the LCCs and the large network carriers.

LH couldn't/never had the will to make a go of bmi and IAG emerged as the only credible bidder.

This may seem harsh but Virgin should only be aggrieved at itself having missed, on no less than three different occassions over more than a decade, the chance for some form of merger with bmi.

After a lot of hot air and bluster Virgin now has nothing to show for it.

nguba wrote:

Sealink wrote:So the EU strategy favours the dominant player, hence my cynicism at the whole thing. I think VS have a right to be aggrieved.

The EU has largely allowed market forces to operate.

The market decided that there wasn't room for a medium sized short/medium haul carrier to sit between the LCCs and the large network carriers.

LH couldn't/never had the will to make a go of bmi and IAG emerged as the only credible bidder.

This may seem harsh but Virgin should only be aggrieved at itself having missed, on no less than three different occassions over more than a decade, the chance for some form of merger with bmi.

After a lot of hot air and bluster Virgin now has nothing to show for it.

I'm not saying that VS haven't messed up or missed out, but the idea that giving up 12 slots will dent BA's influence/control at LHR is laughable. Don't get me wrong: Walsh has played a blinder, but what will the cost be?

Sorry to hear that 1,200 bmi jobs will be lost...

BA to close bmi's Belfast City base...

Sealink wrote:BA to close bmi's Belfast City base...

Is this speculation or something that has been reported?

Spill wrote:

Sealink wrote:BA to close bmi's Belfast City base...

Is this speculation or something that has been reported?

I've seen it reported. Been keeping an eye on this one as I really like BHD over International, and this, following Ryanair and Easyjet pulling out, doesn't exactly inspire confidence in its long term viability...