Category Archives: bmi

IAG and Lufthansa reach agreement in principle on the sale of BMI

IAG (International Airlines Group) (London and Madrid) and Lufthansa (Frankfurt) have reach an agreement in principal on the sale of British Midland Limited (BMI) (East Midlands) to IAG.

The sale and closing of the deal remain subject to conditions including a binding purchase agreement, further due diligence and regulatory clearances. It is envisaged that the purchase agreement will be signed in the coming weeks and the aim is for the transaction to be completed in the first quarter of 2012.

This is probably the end of BMI if the agreement is finalized.

BMI Slide Show: CLICK HERE

On the financial side, International Airlines Group today (November 4) presented Group results for the three and nine months ended September 30, 2011. In addition, IAG presented combined results for the nine months ended September 30, 2011 including Iberia’s first 21 days of January.

IAG period highlights on combined results:

·      Third quarter operating profit of €363 million, before exceptional items (2010: €528 million)

·      Operating profit for the nine months to September 30, 2011 of €451 million, before exceptional items (2010: €219 million)

·      Profit before tax for the nine months of €355 million after exceptional items (2010: €63 million)

·      Revenue for the nine months up 11.6 per cent to €12,263 million (2010: €10,986 million), including €146 million or 1.3 per cent of adverse currency translation

·      Passenger unit revenue for the nine months up 4.1 per cent (6.7 per cent at constant currency), on top of capacity increases of 7.7 per cent

·      Fuel costs for the nine months up 28.5 per cent to €3,751 million, before exceptional items (2010: €2,919 million)

·      Other operating costs up 2.7 per cent at €8,061 million, before exceptional items, including €122 million or 1.0 per cent of favourable currency translation. Non fuel unit costs down 4.7 per cent, or 3.4 per cent at constant currency

·      Cash down €200 million to €4,152 million (December 2010: €4,352 million)

·      Group net debt down €293 million to €602 million (December 2010: €895 million)

Read the article by Bloomberg Businessweek: CLICK HERE

Copyright Photo: Rob Skinkis.

Virgin Atlantic is interested in merging with BMI, will develop the world’s first low carbon aviation fuel

Virgin Atlantic Airways (London) is strongly pursuing a buy-out of rival BMI (East Midlands) from Lufthansa and combining the two carriers according to this report by Bloomberg Businessweek.

Read the full report: CLICK HERE

In other news, Virgin Atlantic Airways today announced the development of a world-first low carbon aviation fuel with just half the carbon footprint of the standard fossil fuel alternative.

The ground breaking partnership with LanzaTech represents a breakthrough in aviation fuel technology that will see waste gases from industrial steel production being captured, fermented and chemically converted using Swedish Biofuels technology for use as a jet fuel. The revolutionary fuel production process recycles waste gases that would otherwise be burnt into the atmosphere as carbon dioxide.

Within two to three years Virgin Atlantic will plan flights with the new fuel on its routes from Shanghai and Delhi to London Heathrow as LanzaTech and partners develop facilities in China and India. The technology is currently being piloted in New Zealand, a larger demonstration facility will be commissioned in Shanghai this year, and the first commercial operation will be in place in China by 2014. Following successful implementation, a wider roll-out could include operations in the UK and the rest of the world.

LanzaTech estimates that its process can apply to 65 % of the world’s steel mills, allowing the fuel to be rolled out for worldwide commercial use. The energy company believes that this process can also apply to metals processing and chemical industries, growing its potential considerably further.

Virgin Atlantic will be the first airline to use this fuel and will work with LanzaTech, Boeing and Swedish Biofuels towards achieving the technical approval required for using new fuel types in commercial aircraft. A “demo” flight with the new fuel is planned in 12-18 months.

This next generation technology overcomes the complex land use issues associated with some earlier generation biofuels – and detailed analysis suggests the fuel will produce around a 50% saving in lifecycle carbon emissions. The Roundtable for Sustainable Biofuels (RSB), the leading international body to ensure the sustainability of biofuels production, will advise the team to ensure the fuel produced meets key environmental, social and economic criteria.

Virgin Atlantic believes that this development will take the airline well beyond its pledge of a 30% carbon reduction per passenger km by 2020. The investment in renewable fuels is part of our wider program to reduce carbon through measures such as using new, more fuel-efficient aircraft and supporting a global carbon cap and trade scheme, through our involvement in Aviation Global Deal group.

Copyright Photo: Nik French.

Virgin Atlantic Slide Show: CLICK HERE

BMI cuts domestic capacity to Edinburgh and Manchester from London Heathrow

BMI (British Midland International) (East Midlands) will cut capacity on the London Heathrow-Edinburgh and London Heathrow-Manchester routes effective on October 30.

Read the full report from ABTN: CLICK HERE

BMI Slide Show: CLICK HERE

Copyright Photo: Michael Stappen. Please click on the photo for additional aircraft information.

Virgin Atlantic continues to express its interest in acquiring BMI from Lufthansa

Virgin Atlantic Airways (London) is keen on acquiring BMI (East Midlands) and its valuable Heathrow Airport slots.

Lufthansa is still studying whether to sell BMI or attempt to turnaround the loss-making UK carrier.

Read the full report from Bloomberg: CLICK HERE

Virgin Atlantic Slide Show: CLICK HERE

Copyright Photo: Wingnut. Please click on the photo for additional information.

bmi loses $91 million in the first half, searches for an identity

bmi (British Midland International) (East Midlands) reported an operating loss of $91 million in the first half. Owner Lufthansa is helping the struggling carrier to redefine its business plan as the company has been hurt by the Arab Spring. Is it a low-fare airline or a full-service carrier? Will LH put up with the continued losses or sell off its UK subsidiary?

Read the full report from ATW: CLICK HERE

bmi Slide Show: CLICK HERE

Copyright Photo: Rob Skinkis.

bmi adds new routes to Norway and Morocco

bmi (British Midland Airways) (East Midlands and London Heathrow) has announced new services from London Heathrow to Europe and North Africa. Bmi will offer new daily flights to Bergen and Stavanger in Norway effective April 1, 2011, and new services to Casablanca and Marrakech in Morocco. Direct flights to Casablanca will operate four times per week from April 2, 2011, and flights to Marrakech will operate three times per week from London Heathrow from April 1, 2011.

The new services from Heathrow will be operated with Airbus A319s.

Bmi is now the only airline to serve Bergen from Heathrow.

In addition to the route expansion at Heathrow, bmi will fly some Lufthansa services from Birmingham and Manchester to Frankfurt. From March 27, 2011 the bmi A320 family aircraft will be used on three of the four daily Lufthansa services from both Birmingham and Manchester.

Copyright Photo: Keith Burton. Please click on photo for additional information.

bmi’s Heathrow European Routes:

bmi introduces a new logo

bmi (British Midland Airways) (East Midlands) as planned has introduced a new logo on its website. The company is also using the “british midland international” name although the official name remains British Midland Airways. Is a new aircraft livery following?

Copyright Photo: Antony J. Best. Please click on the photo for additional information and previous color schemes.

bmi to launch London Heathrow-Tripoli flights on December 1

bmi (British Midland Airways) (East Midlands) will launch the London (Heathrow)-Tripoli route starting on December 1. The new route will be operated with Airbus A319s. Flight BD469 will depart London Heathrow at 8:55 a.m. (0855) and arrive in Tripoli at 2:30 p.m. (1430). Flight BD470 will leave Tripoli at 3:15 p.m. (1515), arriving at London Heathrow at 4:45 p.m. (1645).

Copyright Photo: Keith Burton. Airbus A319-131 G-DBCB (msn 2188) is pictured beautifully on final approach at Heathrow Airport.

Will Lufthansa sink more money into financially troubled bmi?

Lufthansa (Frankfurt) is facing a decision on whether to sink more money into bmi according to this published report.

News link:

business.timesonline.co.uk/tol/business/industry_sectors/transport/article6911708.ece

Copyright Photo: Bruce Drum.

Please click on photo or link below for full view, information, prints for sale and other photos:

http://airlinersgallery.com/2/22a3154/#/gallery/bmi-british-midland-airways/bmi-a319-100-g-dbce-01-apr-lhr-bd-lr-101529/

SAS agrees to sell 20% bmi share to Lufthansa

Scandinavian Airlines-SAS (Stockholm-Arlanda) has agreed to sell its 20 percent interest in bmi (East Midlands and London Heathrow) to LHBD Holding Limited (Lufthansa). SAS is concentrating on its core Scandinavian business.

Press release:

finance.yahoo.com/news/Sale-of-SAS-Shares-in-bmi-to-bw-3899114935.html?x=0&.v=1