VS referring IAG/BMI to EU Competition commission

Just on my way to work, and heard a reasonably interesting interview with Ridgway on the Today programme - slightly vacuous by slipping BBC standards, but nevertheless gave a reasonable indication of the case VS will argue.

The interviewer did seem to suggest to Ridgway that there is no direct route competition on the routes BA will potentially inherit, and that VS real motivation was to prevent BA gaining a slot majority at LHR.

When pressed on why VS didn't bid more aggressively for BMI, he rather deftly avoided the question.

The general feeling at LHR, certainly at my senior management level, is that this merger will be good for both companies, and that VS is being a little churlish because it lost out in the bidding war.

Opinions anyone?

Report from the BBC

Steve Ridgeway should concentrate on growing VS, getting it into an alliance, and improving the quality of service.

Then he might find people coming back to VS.

Whinging about BMI should not be on his list.

Steve Ridgeway should concentrate on growing VS, getting it into an alliance, and improving the quality of service.

Then he might find people coming back to VS.

Whinging about BMI should not be on his list.

Excellent words of wisdom Slinky...let's hope he is reading this forum

[mitchja]

Steve Ridgeway should concentrate on growing VS, getting it into an alliance, and improving the quality of service.

Then he might find people coming back to VS.

Whinging about BMI should not be on his list.

He does have a point about fares increasing due to less competition though. Without any shadow of a doubt, domestic fares will further increase if BMI gets swallowed up by IAG.

Having booked a domestic flight just this week MAN>LHR, the cheapest return flight was as follows:

BMI = £67.00
BA = £107

[Darren Wheeler]

And on the routes that BMI and BA currently both operate, you will see cuts in capacity with anything out of LHR being a prime candidate so as to release a slot for a more profitable route. Good example, bye bye LHR-BDH.

WW has said that he will keep BHD-LHR which is a small crum of comfort bur realistically, he will up the price and drop the frequency which will hurt badly, only EI left and their service is v poor. If they would only leave BHD and return to BFS, put A320/321's on to take advantage of the longer runway. It will not be too long before NI will have no connection to LHR so those of you in Scotland and the regions of England who can still go to MAN or take the train, be grateful!
Case for a third runway made.

And on the routes that BMI and BA currently both operate, you will see cuts in capacity with anything out of LHR being a prime candidate so as to release a slot for a more profitable route. Good example, bye bye LHR-BDH.

Which is only speculation, as are all comments until changes occur. Even if flights are cut, there's every possibility of using larger planes, and what with BMI load factors being terrible, who's to say all of the same volume of flights are required.

He does have a point about fares increasing due to less competition though. Without any shadow of a doubt, domestic fares will further increase if BMI gets swallowed up by IAG.

Having booked a domestic flight just this week MAN>LHR, the cheapest return flight was as follows:

BMI = £67.00
BA = £107

And who is losing money and who is not (or more likely who is losing the most on short haul)? BMI is unsustainable, I suspect they only undercut BA to actually get people flying, but they don't make any money.


My point about VS's position on this remains, whinging about competition on a route on which you don't fly and do not compete is part of the game, but it's a diversion and I suggest VS has got more important things to do and get right