bmi Suffers Further Route Closures

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This topic contains 18 replies, has 8 voices, and was last updated by  VintageKrug 17 Sep 2009
at 21:34
.

Viewing 4 posts - 16 through 19 (of 19 total)

  • MarcusUK
    Participant

    I posted the report from The Times on BT about a week ago.

    BA have had talks with BMI, as are Virgin Atlantic.
    Whatever goes on, it seems BMI will be broken up, & sold off in a fragmented way. The slots they hold alone are what is attracting even cash strapped BA, & the possibility to dominate the UK Base market, & it would be a Monopoly for BA.
    They can’t even run profitably as it is, & their own financial status is in question, (pension liability valued at more than the value of the Assets), …
    Perhaps Virgin would be better, but Lufthansa are also cash strapped, & are looking to raise revenue fast,having paid for BMI under a Contract that was not beneficial to them.

    So, it’s an asset stripping move ahead, with so many other Airlines muscling in on routes anyway.
    BMI Diamond club is on it’s Swan song whatever, best get rid of all the miles rapidly!


    Airpocket
    Participant

    Back in the late 80s BA amalgamated British Caledonian into its product and I see the same thing happening here although there is a very real possibility that this acquisition might finally break BA owing to its liabilities and those that would come with taking on BMI.
    With LH already owning SWISS,Austrian, SN Brussels, and possibly Scandinavian in the near future, I doubt the EU Competition authorities will allow LH to acquire BMI.


    NTarrant
    Participant

    Now there was an airline, British Caledonian. Not the same or anywhere near to the situation in the 80’s when BA took over BCal. Firstly, BR operated out of LGW and nothing from LHR, wheras BA had a few routes from LGW which it was forced to operate from. Can ‘t remember why might have been something to do with making LGW more of a scheduled airport rather than one known for holiday charters.

    There was duplication on domestic routes (MAN,GLA,EDI) and AMS and PAR but of course from LGW. BR was a much bigger airline than BMI is or has ever been and had a number of African and US routes.


    VintageKrug
    Participant

    I used to fly BCal quite a bit to the Caribbean on Tristars and then I guess it would have been DC-10s.

    A lovely airline, and one of the best twee adverts ever made:

    http://www.youtube.com/watch?v=IA5E1fPvWQY

    And of course they operated a helicopter between LGW and LHR in those days – my first trip on one – I think the pilot gave me a lollipop!

Viewing 4 posts - 16 through 19 (of 19 total)
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