BMI - it's over. Thanks for the memories Pune/Donington/Keeley/Joanna!

[HUGE AL]

You know, this might turn out into a protracted battle, taking oh say.... 12 years to pan out

So BD*G lifetime is possible then

[HUGE AL]

December 12th Times Article -- VS More Seriously in the Mix

Article cannot be pulled online:

The battle for control of bmi British Midland has intensified with Virgin Atlantic starting due diligence to buy the ailing airline.

The Times understands that Virgin has made an indicative offer and signed a “terms of agreement” contract with Lufthansa, bmi’s owner, so that it can analyse the airline’s books.

International Airlines Group, which owns British Airways, said last month that it had reached an agreement in principle to buy loss-making bmi from Lufthansa but Virgin has been determined to gatecrash that deal.

Banking sources said that the indicative offer from Virgin was lower than the IAG offer but Sir Richard Branson’s airline is banking on being able to complete a deal quickly without the regulatory scrutiny that would accompany a BA-bmi merger.

The Virgin offer is thought to be in the region of £50 million, while IAG’s is about double that figure, excluding pension and restructuring costs.

Lufthansa is expected to make a final decision on a buyer for its British subsidiary early in the new year, ending an unhappy venture into the UK aviation market.

The German flag carrier was forced to take control of bmi two years ago when the British airline’s former chairman, Sir Michael Bishop, exercised an option to sell his shares for about £220 million.

Since then, bmi has struggled to cope with the economic downturn and lost €154 million in the first nine months of this year — equivalent to €34 for every passenger carried.

Bmi’s losses for the full year are likely to far exceed last year’s €145 million despite an aggressive restructuring that has resulted in the carrier shrinking by about one third.

Undeterred by bmi’s losses, IAG and Virgin are keen to acquire the airline and gain control of its Heathrow landing slots, which analysts have valued at about €226 million.

A deal for bmi would significantly strengthen BA’s position at the world’s busiest international airport. The merger would give IAG an additional 8 per cent of Heathrow slots, taking its total over 50 per cent.

But such a merger is likely to face scrutiny by competition regulators and Virgin has already promised to fight it through the courts. This could delay the transfer of bmi’s assets for up to a year, forcing Lufthansa to swallow hundreds of millions of euros in additional losses.

Virgin’s bankers are understood to be arguing that Lufthansa would be better off doing a quick but lower-priced deal with Sir Richard’s airline.

A deal with bmi offers Virgin the opportunity to build a European feeder network for its long-haul operations based at Heathrow. Virgin would be able to co-ordinate its schedules with bmi to enable passengers from regional cities to transfer from short-haul to long-haul flights at Heathrow. Virgin said: “We have always been interested in bmi and are in constant talks regarding its future.”

Etihad, the Abu Dhabi-based airline, is understood to have expressed an interest in bmi this year but is no longer pursuing a deal. The Gulf carrier has been linked to other potential purchases, including Aer Lingus and Air Berlin.

Lufthansa has attempted to offload bmi on a number of occasions in the past two or three years. Bmi has struggled as passengers have traded down to lower-cost alternatives such as easyJet and Ryanair but it does not have the long-haul operations to insulate it against the brunt of Europe’s economic problems.

Lufthansa declined to comment on its plans for bmi.

[milehighj]

So, in theory, VS could acquire and keep BD in *A... And keeping the DC gravy train running at least for a bit longer...?

[SQflyergirl]

So, in theory, VS could acquire and keep BD in *A... And keeping the DC gravy train running at least for a bit longer...?

In theory

[HUGE AL]

Worst case could be:

But such a merger is likely to face scrutiny by competition regulators and Virgin has already promised to fight it through the courts. This could delay the transfer of bmi’s assets for up to a year, forcing Lufthansa to swallow hundreds of millions of euros in additional losses.

I remember VS's "Dirty Tricks" lawsuit against BA (which Branson was victorious). That thing went on a LONG time.

[SQtraveller]

Worst case could be:



I remember VS's "Dirty Tricks" lawsuit against BA (which Branson was victorious). That thing went on a LONG time.

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[demue]

Well it looks like it is official now that BD goes to IAG. See the article on LH Press release site: http://presse.lufthansa.com/en/news-...icle/2054.html

[9V-JKL]

I wonder what the quote from the release means: Transaction offers sustainable future prospects for bmi

[HUGE AL]

This totally sucks! Let's hope that VS can tie it up for some time.

[stargold]

I wonder what the quote from the release means: Transaction offers sustainable future prospects for bmi

What they mean is,

"We're taking this opportunity to multiply the requirements for the miles and cash elements of our Miles & Cash redemptions by a factor of 10"

[Savage25]

I wonder what the quote from the release means: Transaction offers sustainable future prospects for bmi

That's British bank-speak for "blah, blah, blah, whatever". I used to draft statements like that.

[milehighj]

Considering what little actual interaction I have with BD, it was poignant to discover this news upon walking into the London Lounge at LHR T1 today, as it was flahed on Sky News. The lounge agent ladies were a little distracted.

[CarbonMan]

Here's the bit from BBC World with VS complaining ...

http://www.bbc.co.uk/news/business-16298167

[jhm]

This totally sucks! Let's hope that VS can tie it up for some time.

If SRB (for a change) actually put his money where his mouth is, VS could have bought BD...!

[SQtraveller]

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