Lufthansa pare aver un accordo per la cessione di BMI a British Airways
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- Data d'inizio
bmi integration into British Airways - message from Keith Williams
Message from the CEO:
I am very pleased to let you know that IAG now plans to integrate bmi mainline into British Airways, subject to receiving regulatory approval for the acquisition.
This would be a great opportunity to grow our business. It would strengthen Heathrow as a hub, open new market possibilities, enable us to compete more effectively with other global airline groups and offer greater choice to our customers.
It would also be a great challenge. Losses at bmi are substantial, and its operation at Heathrow is very different from ours. Integration would be a complex process, raising new issues for us as we maintain our determination to keep the customer at the heart of everything we do.
Our successful bid follows support for integration by our flight crew, including pay and productivity changes that will achieve £10m of annual savings by 2015. I am grateful to them for the positive and constructive attitude they have shown toward getting our business in the right shape for the future. This is one key step toward the successful acquisition of bmi and the improvements required to our shorthaul business.
We hope the regulatory process will be concluded around the end of the first quarter of the year. I must emphasise that until IAG receives regulatory approval, this is not a done deal. In the intervening period, bmi remains an independent competitor of British Airways, and must be treated as such. We must remain fully compliant with competition law.
Today's news is an important development for all of us. Everyone has done a great job in keeping our own business going during the current economic uncertainties. We must continue to keep that focus whilst we secure the opportunity that bmi brings.
fonte BA
Message from the CEO:
I am very pleased to let you know that IAG now plans to integrate bmi mainline into British Airways, subject to receiving regulatory approval for the acquisition.
This would be a great opportunity to grow our business. It would strengthen Heathrow as a hub, open new market possibilities, enable us to compete more effectively with other global airline groups and offer greater choice to our customers.
It would also be a great challenge. Losses at bmi are substantial, and its operation at Heathrow is very different from ours. Integration would be a complex process, raising new issues for us as we maintain our determination to keep the customer at the heart of everything we do.
Our successful bid follows support for integration by our flight crew, including pay and productivity changes that will achieve £10m of annual savings by 2015. I am grateful to them for the positive and constructive attitude they have shown toward getting our business in the right shape for the future. This is one key step toward the successful acquisition of bmi and the improvements required to our shorthaul business.
We hope the regulatory process will be concluded around the end of the first quarter of the year. I must emphasise that until IAG receives regulatory approval, this is not a done deal. In the intervening period, bmi remains an independent competitor of British Airways, and must be treated as such. We must remain fully compliant with competition law.
Today's news is an important development for all of us. Everyone has done a great job in keeping our own business going during the current economic uncertainties. We must continue to keep that focus whilst we secure the opportunity that bmi brings.
fonte BA
Virgin fa una lamentela formale presso la Commissione Europea
Virgin lodges complaint over airline merger
Passengers face higher fares and reduced services between Scottish airports and London Heathrow if British Airways succeeds in taking over rivals BMI, Virgin Atlantic has claimed.
The airline made the claim as it lodged a formal complaint on the proposed merger to the European Commission.
It said passengers would be left with a "choice of one" on flights between Aberdeen and Edinburgh and Heathrow.
Late last year, BA owner IAG agreed a binding deal to buy BMI from Lufthansa.
The move, which is subject to clearance by competition bodies, would give BA a monopoly of routes between Heathrow and Scotland's three largest cities.
In its formal submission to the commission, Virgin said BA would have the "opportunity and the means" to increase fares dramatically and reduce flights on routes.
'Dark ages'
Sir Richard Branson's airline pointed to BMI's withdrawal of its flights from Heathrow to Glasgow in early 2011, which left BA as the sole operator.
It claimed industry data showed this resulted in average fares paid by passengers increasing by 34%, while the number of flights on the route decreased by nearly half.
Virgin also claimed at least 1.8 million Scottish passengers faced price increases.
Sir Richard said the takeover would "take British flying back to the dark ages".
He said: "When British Airways was left the only operator on the Glasgow to Heathrow route in 2011, fares paid by Scottish travellers rocketed by 34% in six months. That is not beneficial, that is backbreaking and plainly unfair.
"BA is already operating on 60% of BMI's routes so this move is clearly about knocking out the competition."
He added: "The regulators cannot allow British Airways to sew up UK flying and squeeze the life out of the Scottish travelling public.
"It is vital that regulatory authorities, in the UK as well as in Europe, give this merger the fullest possible scrutiny and ensure it is stopped."
IAG said it was confident regulatory authorities would approve the deal.
'Healthy competition'
In a statement, it said: "BMI is a massively loss-making airline.
"Selling it to IAG offers the best solution for British consumers and UK plc, securing more jobs than if the airline was broken up and sold off for its Heathrow slots.
"This deal is the only option for safeguarding services to the UK regions. We've committed to keeping services from Belfast to Heathrow and increasing flights to Scotland.
"Far from cutting back, British Airways added 4,000 weekly seats on its services from Heathrow to Glasgow last year.
"Virgin Atlantic has never flown to Scotland and, as far as we know, has no plans to do so."
It added: "Heathrow has healthy competition with more than 80 airlines operating at the airport. It is one part of the overall London market and we face strong competition from airlines across five London airports."
'Damaging' move
A number of Scottish MEPs and MSPs have outlined their concerns about the merger's implications with the European Union's Competition Commissioner Joaquin Almunia, arguing the move could have a significant damaging effect on choice and competition for passengers in Scotland.
SNP MEP Alyn Smith said: "If this move goes ahead IAG would have a monopoly on the Edinburgh-Heathrow and Aberdeen-Heathrow routes: this could lead to reduction in service and increase in price.
"This could also prove problematic logistically for passengers who have connecting flights with all flights from Aberdeen and Edinburgh being forced through Heathrow's Terminal 5."
Tory MSP Murdo Fraser, who has also raised the issue with the Office of Fair Trading, said: "My principal concern is the implication to Scotland of the proposed takeover, in particular, the potential impact on competition in the airline sector in the UK and also on whether BA will make changes to the frequency of flights between Scotland and the UK or to overall capacity."
Edinburgh Liberal Democrat MP Mike Crockart said air links between Edinburgh and London were "vital" for businesses and tourists.
He added: "The proposed deal raises serious concerns around competition and passenger choice.
"It's not simply an issue about direct flights between Scotland's major cities and London Heathrow, but also about the potential impact on competition for connecting routes to the rest of the world."
http://www.bbc.co.uk/news/uk-scotland-scotland-business-17073575
Virgin lodges complaint over airline merger
Passengers face higher fares and reduced services between Scottish airports and London Heathrow if British Airways succeeds in taking over rivals BMI, Virgin Atlantic has claimed.
The airline made the claim as it lodged a formal complaint on the proposed merger to the European Commission.
It said passengers would be left with a "choice of one" on flights between Aberdeen and Edinburgh and Heathrow.
Late last year, BA owner IAG agreed a binding deal to buy BMI from Lufthansa.
The move, which is subject to clearance by competition bodies, would give BA a monopoly of routes between Heathrow and Scotland's three largest cities.
In its formal submission to the commission, Virgin said BA would have the "opportunity and the means" to increase fares dramatically and reduce flights on routes.
'Dark ages'
Sir Richard Branson's airline pointed to BMI's withdrawal of its flights from Heathrow to Glasgow in early 2011, which left BA as the sole operator.
It claimed industry data showed this resulted in average fares paid by passengers increasing by 34%, while the number of flights on the route decreased by nearly half.
Virgin also claimed at least 1.8 million Scottish passengers faced price increases.
Sir Richard said the takeover would "take British flying back to the dark ages".
He said: "When British Airways was left the only operator on the Glasgow to Heathrow route in 2011, fares paid by Scottish travellers rocketed by 34% in six months. That is not beneficial, that is backbreaking and plainly unfair.
"BA is already operating on 60% of BMI's routes so this move is clearly about knocking out the competition."
He added: "The regulators cannot allow British Airways to sew up UK flying and squeeze the life out of the Scottish travelling public.
"It is vital that regulatory authorities, in the UK as well as in Europe, give this merger the fullest possible scrutiny and ensure it is stopped."
IAG said it was confident regulatory authorities would approve the deal.
'Healthy competition'
In a statement, it said: "BMI is a massively loss-making airline.
"Selling it to IAG offers the best solution for British consumers and UK plc, securing more jobs than if the airline was broken up and sold off for its Heathrow slots.
"This deal is the only option for safeguarding services to the UK regions. We've committed to keeping services from Belfast to Heathrow and increasing flights to Scotland.
"Far from cutting back, British Airways added 4,000 weekly seats on its services from Heathrow to Glasgow last year.
"Virgin Atlantic has never flown to Scotland and, as far as we know, has no plans to do so."
It added: "Heathrow has healthy competition with more than 80 airlines operating at the airport. It is one part of the overall London market and we face strong competition from airlines across five London airports."
'Damaging' move
A number of Scottish MEPs and MSPs have outlined their concerns about the merger's implications with the European Union's Competition Commissioner Joaquin Almunia, arguing the move could have a significant damaging effect on choice and competition for passengers in Scotland.
SNP MEP Alyn Smith said: "If this move goes ahead IAG would have a monopoly on the Edinburgh-Heathrow and Aberdeen-Heathrow routes: this could lead to reduction in service and increase in price.
"This could also prove problematic logistically for passengers who have connecting flights with all flights from Aberdeen and Edinburgh being forced through Heathrow's Terminal 5."
Tory MSP Murdo Fraser, who has also raised the issue with the Office of Fair Trading, said: "My principal concern is the implication to Scotland of the proposed takeover, in particular, the potential impact on competition in the airline sector in the UK and also on whether BA will make changes to the frequency of flights between Scotland and the UK or to overall capacity."
Edinburgh Liberal Democrat MP Mike Crockart said air links between Edinburgh and London were "vital" for businesses and tourists.
He added: "The proposed deal raises serious concerns around competition and passenger choice.
"It's not simply an issue about direct flights between Scotland's major cities and London Heathrow, but also about the potential impact on competition for connecting routes to the rest of the world."
http://www.bbc.co.uk/news/uk-scotland-scotland-business-17073575
Lufthansa Vows With BA Not to Let Virgin Gripe Kill BMI Deal
Deutsche Lufthansa AG (LHA) Chief Executive Officer Christoph Franz predicted the sale of its unprofitable BMI unit to International Consolidated Airlines Group SA will clear antitrust hurdles at the first attempt.
Franz said a European Commission examination of the deal is unlikely to trigger an extended probe, and that Lufthansa and the British Airways parent will work to answer any concerns the regulator might raise. IAG CEO Willie Walsh said he’s “not looking to walk away” and wants to address issues quickly.
The deadline for a ruling on the takeover was extended to March 30 after IAG (IAG) proposed measures to alleviate competition concerns, the commission said in a March 12 filing. Virgin Atlantic Airways Ltd. has said a deal would eliminate passenger choice by giving BA a monopoly on routes from northern Britain to London Heathrow, services through which BMI also supplies the Richard Branson-controlled carrier with vital feeder traffic.
“I can’t imagine that it will come to a phase two,” Franz said at a press conference in Frankfurt. “Once the first phase is over we will see what conditions we, as a seller, and IAG, as a buyer, are confronted with, and will then try to get the sale through as soon as possible.”
Reduced Service
Scottish campaigners opposed to the transaction say it will allow British Airways to raise fares on flights to Heathrow from Glasgow, Edinburgh and Aberdeen in the absence of competition and erode the number of overall services to Europe’s busiest air hub. The Manchester-Heathrow route would also become a monopoly, according to Virgin Atlantic, BA’s biggest long-haul competitor.
IAG’s Walsh said in an interview that the London-based company, formed last year from a merger of BA and Spain’s Iberia, has made proposals regarding competition on some routes, without revealing which ones or what the suggestions were.
“Our aim is to get clearance in phase one,” he said. “I believe we’ve made sensible and suitable concessions to address the concerns that they have highlighted, and I hope that would be sufficient to get this cleared by the end of March.”
Cologne-based Lufthansa, Europe’s second-biggest airline, agreed in December to sell BMI’s main Heathrow operations to IAG, the No. 3, for 172.5 million pounds ($272 million). Two bidders have also come forward for the East Midlands airport- based Bmibaby discount unit, it said March 5, and a draft deal has been reached for a regional operation located in Scotland.
Delay Risk
Walsh said a lengthy delay could be potentially damaging in business terms because of uncertainty created around BMI.
“We believe many of the arguments would be won in a phase- two investigation, but the question is what happens in the interim,” he said. “It’s in everybody’s interests that this is addressed quickly and that’s why, with Lufthansa, we are looking to see if we can get sensible phase-one clearance.”
Castle Donington, England-based BMI said separately that there’s no question of the plug being pulled in the event of a more drawn out antitrust examination.
“Contrary to media reports, we do have funding available beyond March,” spokeswoman Katherine Hill said in an e-mail.
Franz said today that the terms of Lufthansa’s agreement with IAG, which wants BMI for its scarce Heathrow slots, ease the burden of the disposal and antitrust process.
Losing Out
“We have agreed an all-inclusive package with IAG whereby the restructuring costs, the running losses until the closing of the deal, and the penalties imposed by the antitrust body are shared,” he said in answer to questions in Frankfurt.
It’s logical that BA would prefer to use a BMI takeoff and landing slot to operate an Airbus SAS A380 superjumbo to Singapore than a “half-empty” Boeing Co. 737 from Glasgow, said Scottish National Party politician Alyn Smith, a member of the European Parliament, the European Union’s legislative assembly.
“Vast numbers of Scots use Heathrow and I do not believe their interests are best served by this potential monopoly,” Smith said in an interview. “This will lead to fewer services from Scotland to Heathrow and more expensive services as well.”
Lufthansa (LHA) said today that its board approved a 140 million euro capital increase for Austrian Airlines aimed at sustaining a business that’s in a “critical” situation. In return, unions must compromise on contracts, with “competitive employment conditions” to be enforced for air crew, according to Franz, who said the company can no longer tolerate “permanent loss-makers.”
Tyrolean Switch
Austrian Airlines (LHA), where Lufthansa is seeking 260 million euros of savings, had a loss of 62 million euros last year, while discount unit Germanwings suffered a 52 million euro shortfall. BMI racked up deficits and disposal costs of 285 million euros, pushing the group to a 13 million-euro net loss.
“Whether at Austrian or other units where a profit is not likely, we will not continue to prop them up or subsidize them,” Franz said. “That’s simply not possible. We’ve too much respect for other Lufthansa employees where we are trying to cut costs.”
Should workers in Vienna fail to accept new terms, Franz said Lufthansa will consider transferring operations to Austrian regional unit Tyrolean Airways, which has a lower cost base.
Group-wide operating profit will be in the “mid three- figure million euro range” in 2012, Lufthansa said today in an earnings statement. That would extend a decline after last year’s figure fell 18 percent to 820 million euros.
Shares of Lufthansa, which also owns Swiss Air and Brussels Airlines, fell as much as 3.7 percent and traded 2 percent lower as of 3:32 p.m. in Frankfurt. The stock has gained 12 percent this year, valuing the company at 4.72 billion euros.
http://www.bloomberg.com/news/2012-...to-slide-again-this-year-on-fuel-economy.html
Deutsche Lufthansa AG (LHA) Chief Executive Officer Christoph Franz predicted the sale of its unprofitable BMI unit to International Consolidated Airlines Group SA will clear antitrust hurdles at the first attempt.
Franz said a European Commission examination of the deal is unlikely to trigger an extended probe, and that Lufthansa and the British Airways parent will work to answer any concerns the regulator might raise. IAG CEO Willie Walsh said he’s “not looking to walk away” and wants to address issues quickly.
The deadline for a ruling on the takeover was extended to March 30 after IAG (IAG) proposed measures to alleviate competition concerns, the commission said in a March 12 filing. Virgin Atlantic Airways Ltd. has said a deal would eliminate passenger choice by giving BA a monopoly on routes from northern Britain to London Heathrow, services through which BMI also supplies the Richard Branson-controlled carrier with vital feeder traffic.
“I can’t imagine that it will come to a phase two,” Franz said at a press conference in Frankfurt. “Once the first phase is over we will see what conditions we, as a seller, and IAG, as a buyer, are confronted with, and will then try to get the sale through as soon as possible.”
Reduced Service
Scottish campaigners opposed to the transaction say it will allow British Airways to raise fares on flights to Heathrow from Glasgow, Edinburgh and Aberdeen in the absence of competition and erode the number of overall services to Europe’s busiest air hub. The Manchester-Heathrow route would also become a monopoly, according to Virgin Atlantic, BA’s biggest long-haul competitor.
IAG’s Walsh said in an interview that the London-based company, formed last year from a merger of BA and Spain’s Iberia, has made proposals regarding competition on some routes, without revealing which ones or what the suggestions were.
“Our aim is to get clearance in phase one,” he said. “I believe we’ve made sensible and suitable concessions to address the concerns that they have highlighted, and I hope that would be sufficient to get this cleared by the end of March.”
Cologne-based Lufthansa, Europe’s second-biggest airline, agreed in December to sell BMI’s main Heathrow operations to IAG, the No. 3, for 172.5 million pounds ($272 million). Two bidders have also come forward for the East Midlands airport- based Bmibaby discount unit, it said March 5, and a draft deal has been reached for a regional operation located in Scotland.
Delay Risk
Walsh said a lengthy delay could be potentially damaging in business terms because of uncertainty created around BMI.
“We believe many of the arguments would be won in a phase- two investigation, but the question is what happens in the interim,” he said. “It’s in everybody’s interests that this is addressed quickly and that’s why, with Lufthansa, we are looking to see if we can get sensible phase-one clearance.”
Castle Donington, England-based BMI said separately that there’s no question of the plug being pulled in the event of a more drawn out antitrust examination.
“Contrary to media reports, we do have funding available beyond March,” spokeswoman Katherine Hill said in an e-mail.
Franz said today that the terms of Lufthansa’s agreement with IAG, which wants BMI for its scarce Heathrow slots, ease the burden of the disposal and antitrust process.
Losing Out
“We have agreed an all-inclusive package with IAG whereby the restructuring costs, the running losses until the closing of the deal, and the penalties imposed by the antitrust body are shared,” he said in answer to questions in Frankfurt.
It’s logical that BA would prefer to use a BMI takeoff and landing slot to operate an Airbus SAS A380 superjumbo to Singapore than a “half-empty” Boeing Co. 737 from Glasgow, said Scottish National Party politician Alyn Smith, a member of the European Parliament, the European Union’s legislative assembly.
“Vast numbers of Scots use Heathrow and I do not believe their interests are best served by this potential monopoly,” Smith said in an interview. “This will lead to fewer services from Scotland to Heathrow and more expensive services as well.”
Lufthansa (LHA) said today that its board approved a 140 million euro capital increase for Austrian Airlines aimed at sustaining a business that’s in a “critical” situation. In return, unions must compromise on contracts, with “competitive employment conditions” to be enforced for air crew, according to Franz, who said the company can no longer tolerate “permanent loss-makers.”
Tyrolean Switch
Austrian Airlines (LHA), where Lufthansa is seeking 260 million euros of savings, had a loss of 62 million euros last year, while discount unit Germanwings suffered a 52 million euro shortfall. BMI racked up deficits and disposal costs of 285 million euros, pushing the group to a 13 million-euro net loss.
“Whether at Austrian or other units where a profit is not likely, we will not continue to prop them up or subsidize them,” Franz said. “That’s simply not possible. We’ve too much respect for other Lufthansa employees where we are trying to cut costs.”
Should workers in Vienna fail to accept new terms, Franz said Lufthansa will consider transferring operations to Austrian regional unit Tyrolean Airways, which has a lower cost base.
Group-wide operating profit will be in the “mid three- figure million euro range” in 2012, Lufthansa said today in an earnings statement. That would extend a decline after last year’s figure fell 18 percent to 820 million euros.
Shares of Lufthansa, which also owns Swiss Air and Brussels Airlines, fell as much as 3.7 percent and traded 2 percent lower as of 3:32 p.m. in Frankfurt. The stock has gained 12 percent this year, valuing the company at 4.72 billion euros.
http://www.bloomberg.com/news/2012-...to-slide-again-this-year-on-fuel-economy.html
BA to cut 1,200 jobs in bmi takeover
By Alan Dron | April 13, 2012
British Airways (BA) has announced it will cut up to 1,200 jobs as it absorbs the mainline operations of British Midland International (bmi).
Loss-making bmi, sold by the Lufthansa Group to BA parent International Airlines Group (IAG) in December 2011, has around 2,700 employees (ATW Daily News, Dec. 23, 2011).
BA said it began consultations today with trade unions representing bmi staff. Most of the job losses will come at bmi’s Castle Donington corporate headquarters in the East Midlands of England, and at regional airports.
Jobs secured under BA’s proposals include roughly 1,100 pilots, cabin crew and engineers based at London’s Heathrow airport, plus 400 passenger services jobs in the airport’s Terminal 1.
The UK flag carrier said it is also working to find potential employment opportunities for bmi personnel facing redundancy with its industry partners, such as Rolls-Royce in the Midlands. It said it will also seek to create openings at its own engineering facility at Glasgow airport in Scotland.
“Bmi is heavily loss-making and is not a viable business as it stands today,” said BA chief executive Keith Williams. “Our proposals would secure 1,500 jobs that would otherwise be lost. As we look to restructure the business and restore profitability, job losses are deeply regrettable but inevitable.”
Integrating bmi’s mainline operations into its own organization will give BA an additional 56 average daily slot pairs at capacity-constrained Heathrow. It plans to use many of the new slots to expand services to long-haul destinations, particularly in the Asia/Pacific region. However, to gain regulatory approval for the merger, IAG had to give up 14 LHR slot pairs and offer other conditions (ATW Daily News, April 2).
Discussions are continuing with potential buyers for two other bmi divisions, bmi regional and low-cost carrier offshoot, bmibaby.
http://atwonline.com/airline-finance-data/news/ba-cut-1200-jobs-bmi-takeover-0412
By Alan Dron | April 13, 2012
British Airways (BA) has announced it will cut up to 1,200 jobs as it absorbs the mainline operations of British Midland International (bmi).
Loss-making bmi, sold by the Lufthansa Group to BA parent International Airlines Group (IAG) in December 2011, has around 2,700 employees (ATW Daily News, Dec. 23, 2011).
BA said it began consultations today with trade unions representing bmi staff. Most of the job losses will come at bmi’s Castle Donington corporate headquarters in the East Midlands of England, and at regional airports.
Jobs secured under BA’s proposals include roughly 1,100 pilots, cabin crew and engineers based at London’s Heathrow airport, plus 400 passenger services jobs in the airport’s Terminal 1.
The UK flag carrier said it is also working to find potential employment opportunities for bmi personnel facing redundancy with its industry partners, such as Rolls-Royce in the Midlands. It said it will also seek to create openings at its own engineering facility at Glasgow airport in Scotland.
“Bmi is heavily loss-making and is not a viable business as it stands today,” said BA chief executive Keith Williams. “Our proposals would secure 1,500 jobs that would otherwise be lost. As we look to restructure the business and restore profitability, job losses are deeply regrettable but inevitable.”
Integrating bmi’s mainline operations into its own organization will give BA an additional 56 average daily slot pairs at capacity-constrained Heathrow. It plans to use many of the new slots to expand services to long-haul destinations, particularly in the Asia/Pacific region. However, to gain regulatory approval for the merger, IAG had to give up 14 LHR slot pairs and offer other conditions (ATW Daily News, April 2).
Discussions are continuing with potential buyers for two other bmi divisions, bmi regional and low-cost carrier offshoot, bmibaby.
http://atwonline.com/airline-finance-data/news/ba-cut-1200-jobs-bmi-takeover-0412
[h=1]Virgin Atlantic appealing IAG takeover of bmi[/h]By Alan Dron | April 17, 2012
Virgin Atlantic Airways (VS) will appeal the European Commission’s (EC) decision to allow British Airways’ (BA) parent International Airlines Group (IAG) to take over debt-racked British Midland International (bmi) (ATW Daily News, April 2).
In a weekend statement, VS said it “believes the deal will cause serious competitive damage at [London] Heathrow (LHR), placing British Airways in a position of total market dominance at the world’s busiest airport and completely eroding consumer choice.”
VS president Richard Branson was quoted as saying the move would damage the UK’s airline industry “for years to come.” He added that the EC had seemingly ignored arguments made by politicians, business groups and airlines that had campaigned against BA being allowed to buy bmi and acquiring its valuable slots at LHR.
VS is bidding to operate all 12 of the remedy slots that the EC insisted BA should surrender as part of the price for acquiring bmi.
Branson argued it was essential that the 12 slots should not be distributed piecemeal to BA’s rivals but be disposed of en bloc, to help create a strong competitor at LHR.
A VS spokeswoman said that although the EC had announced its decision allowing the BA acquisition, the appeal would not be formally lodged with the European Union’s General Court until the full legal decision had been published and scrutinized. The publication date is not yet known.
She added that VS has accepted that any successful appeal would not reverse the ECs decision; the best it could hope for would be more slots stripped from BA.
Virgin Atlantic Airways (VS) will appeal the European Commission’s (EC) decision to allow British Airways’ (BA) parent International Airlines Group (IAG) to take over debt-racked British Midland International (bmi) (ATW Daily News, April 2).
In a weekend statement, VS said it “believes the deal will cause serious competitive damage at [London] Heathrow (LHR), placing British Airways in a position of total market dominance at the world’s busiest airport and completely eroding consumer choice.”
VS president Richard Branson was quoted as saying the move would damage the UK’s airline industry “for years to come.” He added that the EC had seemingly ignored arguments made by politicians, business groups and airlines that had campaigned against BA being allowed to buy bmi and acquiring its valuable slots at LHR.
VS is bidding to operate all 12 of the remedy slots that the EC insisted BA should surrender as part of the price for acquiring bmi.
Branson argued it was essential that the 12 slots should not be distributed piecemeal to BA’s rivals but be disposed of en bloc, to help create a strong competitor at LHR.
A VS spokeswoman said that although the EC had announced its decision allowing the BA acquisition, the appeal would not be formally lodged with the European Union’s General Court until the full legal decision had been published and scrutinized. The publication date is not yet known.
She added that VS has accepted that any successful appeal would not reverse the ECs decision; the best it could hope for would be more slots stripped from BA.
News Story
Walsh 'not confident' of selling Bmi subsidiaries
Posted Tuesday, 24 April, 2012 - 10:02 by Rob Gill
The boss of British Airways’ owner IAG has cast doubt on the ability of the company to sell Bmi subsidiaries Bmibaby and Bmi Regional.
IAG completed the deal to buy Bmi from Lufthansa last week but will pay a lower price for the loss-making business after Lufthansa failed to sell Bmibaby and Bmi Regional before the purchase was finalised.
Willie Walsh, IAG’s chief executive, admitted yesterday that he was “not confident” about selling the two subsidiaries which IAG does not want to run and will not be integrated into BA.
"These are airlines that Lufthansa struggled to sell but we are going to make an effort to sell them,” added Walsh.
IAG previously said it would shut down both airlines if they could not be sold. But now it says that “all options” are being reviewed for them and it was “premature to talk about job implications”.
Bmi Regional employs around 330 people while Bmibaby has a staff of 470. BA has already announced plans to cut up to 1,200 jobs at Bmi’s mainline airline as it is integrated into BA’s operations.
Meanwhile Walsh again attacked the government over its policies on airport expansion and the recent increases in APD which were damaging the UK economy.
“Without question, investment is going to other parts of the world - I meet business people who are telling me that,” said Walsh as he opened Kingston Business School’s new £26 million home.
“They’re locating in places like Frankfurt instead of London. They would prefer to be here in London, but they’re saying the environment isn’t conducive to investment so we’ve got to recognise this as a key economic issue.
“Government policy is misguided and misplaced and needs to be urgently reviewed, or ten years from now we’re going to look back and say, ‘How did we lose all that?’”
He also criticised Heathrow’s immigration queues which were also putting off potential investors.
“I had dinner recently with a businessman who controls a $70 billion investment fund and he stood for more than two hours in a queue to get into Heathrow, and he said to me ‘I am not investing in this country if that’s what I am going to face every time I come here’,” added Walsh.
http://www.abtn.co.uk/news/2417273-walsh-not-confident-selling-bmi-subsidiaries
Walsh 'not confident' of selling Bmi subsidiaries
Posted Tuesday, 24 April, 2012 - 10:02 by Rob Gill
The boss of British Airways’ owner IAG has cast doubt on the ability of the company to sell Bmi subsidiaries Bmibaby and Bmi Regional.
IAG completed the deal to buy Bmi from Lufthansa last week but will pay a lower price for the loss-making business after Lufthansa failed to sell Bmibaby and Bmi Regional before the purchase was finalised.
Willie Walsh, IAG’s chief executive, admitted yesterday that he was “not confident” about selling the two subsidiaries which IAG does not want to run and will not be integrated into BA.
"These are airlines that Lufthansa struggled to sell but we are going to make an effort to sell them,” added Walsh.
IAG previously said it would shut down both airlines if they could not be sold. But now it says that “all options” are being reviewed for them and it was “premature to talk about job implications”.
Bmi Regional employs around 330 people while Bmibaby has a staff of 470. BA has already announced plans to cut up to 1,200 jobs at Bmi’s mainline airline as it is integrated into BA’s operations.
Meanwhile Walsh again attacked the government over its policies on airport expansion and the recent increases in APD which were damaging the UK economy.
“Without question, investment is going to other parts of the world - I meet business people who are telling me that,” said Walsh as he opened Kingston Business School’s new £26 million home.
“They’re locating in places like Frankfurt instead of London. They would prefer to be here in London, but they’re saying the environment isn’t conducive to investment so we’ve got to recognise this as a key economic issue.
“Government policy is misguided and misplaced and needs to be urgently reviewed, or ten years from now we’re going to look back and say, ‘How did we lose all that?’”
He also criticised Heathrow’s immigration queues which were also putting off potential investors.
“I had dinner recently with a businessman who controls a $70 billion investment fund and he stood for more than two hours in a queue to get into Heathrow, and he said to me ‘I am not investing in this country if that’s what I am going to face every time I come here’,” added Walsh.
http://www.abtn.co.uk/news/2417273-walsh-not-confident-selling-bmi-subsidiaries
In effetti BA per comprare BMI si è ritrovata sul groppone anche BMI regional e BMI baby che non gli interessano e che sarà difficile rivendere.