Category Archives: bmi

British Airways to convert nine bmi routes to BA routes on May 23

British Airways (London) has announced the process for switching bmi (East Midlands) flights to British Airways flights has now begun. This complex process will be in phases throughout the summer as bmi flights are changed to have BA flight numbers.

Effective on May 23, 2012, all bmi (BD) flights to and from the following nine cities will change to have British Airways (BA) flight numbers:

Agadir, Basel, Bergen, Casablanca, Hanover, Marrakech, Nice, Stavanger and Vienna.

These BA flights will continue to operate to and from the same airports and terminals, and will depart and arrive at the same times.

Top Copyright Photo: Rolf Wallner.

bmi Slide Show: CLICK HERE

British Slide Show: CLICK HERE

Bottom Copyright Photo: Antony J. Best. “The Dove” arrives at London Heathrow.

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Lufthansa completes the sale of bmi, IAG to dispose of bmibaby and bmi regional

Lufthansa (Frankfurt) has sold British Midland Limited (bmi) to the International Airlines Group (IAG). The sale was completed at the close of business on April 19. The gross purchase price was approximately $277.6 million.

According to Lufthansa, “as price adjustments have been agreed as part of the transaction structure, the net purchase price will be determined at the end of the second quarter 2012, at which point the final amount will be transferred. It continues to be expected that the net purchase price will be negative. However the costs of the transaction for Lufthansa will amortize within one year. The gross purchase price is expected to be reduced by a number of items including agreed deductions for not selling bmi regional and bmibaby prior to the completion of the transaction.

Bmi’s underfunded Pension Scheme is to be transferred to the UK Pension Protection Fund. The pension shortfall for the members of the bmi Pension Scheme will be offset to a large extent by a one-off contribution from Lufthansa of GBP 84 million to a supplementary pension scheme.”

On November 4, 2011, Lufthansa and IAG agreed in principle to the sale of bmi to IAG, prior to a legally binding purchase agreement being signed by both parties on December 22, 2011. The validity of this contract was subject to regulatory approval by the European Commission, which was received on March 30, 2012.

IAG has vowed to operate bmibaby and bmi regional as subsidiaries only for the short term (Lufthansa was unable to sell either carrier prior to the sale date). IAG will now try to dispose of both bmibaby and bmi regional.

Meanwhile Virgin Atlantic Airways has vowed to continue to fight this transaction and hopes to acquire new slots at London Heathrow.

Lufthansa is now entering an austerity period where it will attempt to cut all operations that are not making a profit.

Top Copyright Photo: Antony J. Best. The bmi brand is expected to be retired very quickly by British Airways ending a long history for British Midland Airways, now operating as bmi.

bmi/British Midland Slide Show: CLICK HERE

bmibaby Slide Show: CLICK HERE

Bottom Copyright Photo: Paul Denton. What will happen to bmibaby, the airline that no one wants?

Lufthansa is having a hard time selling bmibaby

Lufthansa (Frankfurt) is having a difficult time selling off its bmibaby (bmibaby.com) (East Midlands) according to this report by Bloomberg. Two previous bidders are no longer in active negotiations to buy the low-fare subsidiary of bmi (East Midlands).

Lufthansa is under pressure to sell off bmibaby. The IAG had agreed to purchase parent bmi for $274 million from Lufthansa but negotiated a “significant” discount if Lufthansa failed to sell off bmibaby prior to the sale.

Read the full report: CLICK HERE

Copyright Photo: Paul Denton.

bmibaby Slide Show: CLICK HERE

IAG to cut 1,200 jobs at BMI

International Airlines Group (IAG) (London), the parent of British Airways (London) and Iberia (Madrid) and soon BMI (East Midlands), is planning to cut around 1,200 jobs at BMI. In order to get European Commission approvals for the acquisition from Lufthansa, BMI will drop routes and slots at London (Heathrow). Service from LHR to Cairo, Edinburgh, Moscow and Nice will be dropped. Around 1,500 BMI jobs will be retained according to this report by the Belfast Telegraph.

Read the full report: CLICK HERE

Copyright Photo: Michael Stappen.

BMI Slide Show: CLICK HERE

The BMI takeover is approved by the European Commission with conditions

British Airways (London) and the IAG have won their fight against Virgin Atlantic Airways (London) for the acquisition of BMI (East Midlands) and the valuable slots at London’s Heathrow Airport. The takeover of BMI from Lufthansa (Frankfurt) has been approved by the European Commission with conditions – British Airways will have to give up 14 slot pairs at London (Heathrow). However this is somewhat mute of an issue since BA will gain an additional 42 slot pairs with the BMI acquisition. Bottom line: Virgin Atlantic loses this battle with BA and the BMI brand will quickly be replaced with the BA livery. BA/IAG is expected to close on the deal around April 20. Goodbye BMI. LHR will certainly become a BA fortress hub.

Subsidiary bmibaby will not be part of this deal.

Read the full story from The Guardian: CLICK HERE

The BBC asks the question of whether BA/IAG gave up enough for BMI: CLICK HERE

BMI Slide Show: CLICK HERE

British Airways Slide Show: CLICK HERE

Virgin Atlantic Slide Show: CLICK HERE

Lufthansa may shut down BMI if approvals are not speedy

Lufthansa (Frankfurt) has reportedly threaten to shut down loss-making BMI (East Midlands) if the approval to sell the unit to the IAG is held up by European Union anti-trust authorities according to the Sunday Times.

Read the full report by Market Watch: CLICK HERE

BMI Slide Show: CLICK HERE

In other news, according to a report by ATW, Lufthansa is unlikely to purchase the remaining 55 percent of Brussels Airlines (Brussels).

Read the full report: CLICK HERE

Top Copyright Photo: Paul Denton.

Brussels Airlines Slide Show: CLICK HERE

Bottom Copyright Photo: Ariel Shocron.

IAG will not have to get approval from the OFT to acquire BMI

BMI (East Midlands) will not have to face an inquiry by Office of Fair Trading (OFT) for the acquisition by the International Airlines Group (IAG) (British Airways and Iberia). The OFT has decided not to review the purchase of BMI from Lufthansa according to this article by the BBC.

The final approval of the acquisition now rests with the European Commission.

Read the story: CLICK HERE

Copyright Photo: Paul Bannwarth. Once approved the BMI brand is expected to be removed rather quickly.

BMI Slide Show: CLICK HERE