Flybe confirms bmi interest, denies it has joined BA in bid
Tuesday September 29, 2009
Flybe is interested in acquiring parts of bmi and officially confirmed its interest to Lufthansa "quite awhile ago," Chairman and CEO Jim French told ATWOnline.
Lufthansa said earlier this month that it had received interest from 12 potential buyers for the sale of bmi, in which it holds an 80% stake (ATWOnline, Sept. 9). "The bigger issue is, from what we understand, that the bmi losses are much higher than previously reported," French told this website, adding, "Some parts of the [bmi] business fit in very well in our network, but we are a very low risk company so any kind of deal will require a very detailed due diligence." Bmi's losses will amount to £150-£170 million on revenue of around £1 billion this year, according to some media reports.
Europe's largest independent regional, which was presented with ATW's Regional Airline of the Year Award for 2009, is not solely interested in bmi regional but also in some parts of the mainline operations at London Heathrow, French said. However, he dismissed reports in the Sunday Times that a potential purchase of bmi's LHR operation or part of it would be done through some form of partnership with British Airways, which also has indicated interest in buying bmi but might not get regulatory clearance for the acquisition owing to its large presence at LHR.
"There is no arrangement whatsoever with BA," French stressed, noting that BA's 15% shareholding in Flybe is totally unrelated to the matter and BA has no seat on the board. But he added that Flybe has made its interest known "to all parties, including Virgin Atlantic, Lufthansa as well as BA. . .indicating we would be open to some kind of agreement with one of them." Virgin Atlantic is considering its own bid for bmi and insiders have indicated to this website they believe BA would participate in the bidding process mainly to run up the price to its archrival.
Separately, French said he was thrilled about the agreement with the new Olympic Air to wet-lease nine of Flybe's Q400s for a period of 12-18 months. The successor to Olympic Airways will buy two of nine aircraft and also take over some delivery positions Flybe holds with Bombardier. "This is a great deal," he commented. "It helps us bridge the recession and it helps Olympic to get started."
atwonline
Tuesday September 29, 2009
Flybe is interested in acquiring parts of bmi and officially confirmed its interest to Lufthansa "quite awhile ago," Chairman and CEO Jim French told ATWOnline.
Lufthansa said earlier this month that it had received interest from 12 potential buyers for the sale of bmi, in which it holds an 80% stake (ATWOnline, Sept. 9). "The bigger issue is, from what we understand, that the bmi losses are much higher than previously reported," French told this website, adding, "Some parts of the [bmi] business fit in very well in our network, but we are a very low risk company so any kind of deal will require a very detailed due diligence." Bmi's losses will amount to £150-£170 million on revenue of around £1 billion this year, according to some media reports.
Europe's largest independent regional, which was presented with ATW's Regional Airline of the Year Award for 2009, is not solely interested in bmi regional but also in some parts of the mainline operations at London Heathrow, French said. However, he dismissed reports in the Sunday Times that a potential purchase of bmi's LHR operation or part of it would be done through some form of partnership with British Airways, which also has indicated interest in buying bmi but might not get regulatory clearance for the acquisition owing to its large presence at LHR.
"There is no arrangement whatsoever with BA," French stressed, noting that BA's 15% shareholding in Flybe is totally unrelated to the matter and BA has no seat on the board. But he added that Flybe has made its interest known "to all parties, including Virgin Atlantic, Lufthansa as well as BA. . .indicating we would be open to some kind of agreement with one of them." Virgin Atlantic is considering its own bid for bmi and insiders have indicated to this website they believe BA would participate in the bidding process mainly to run up the price to its archrival.
Separately, French said he was thrilled about the agreement with the new Olympic Air to wet-lease nine of Flybe's Q400s for a period of 12-18 months. The successor to Olympic Airways will buy two of nine aircraft and also take over some delivery positions Flybe holds with Bombardier. "This is a great deal," he commented. "It helps us bridge the recession and it helps Olympic to get started."
atwonline