Hi
Not good news for UK Airline group bmi
As it looks like Lufthansa has finally given in on trying to turn around bmi group.
This morning it was confirmed by that German parent Lufthansa appointted investment bank Morgan Stanley to explore options for disposing of the carrier which consists of its Heathrow based bmi mainline operation. It regional division, bmi regional and low cost based airline bmi baby.
Airline BMI ‘for sale’ after losses
One of the major users of Heathrow Airport is up for sale after losses soared over the past six months, it has been reported.
BMI British Midland, Heathrow’s second-largest airline, plunged £105 million into the red in the first half of 2011, prompting German parent Lufthansa to appoint investment bank Morgan Stanley to explore options for disposing of the carrier, according to The Sunday Times.
Despite the losses, which work out at £38 per passenger, BMI is expected to attract plenty of interest as it controls 10% of the take-off and landing slots at Heathrow, a portfolio it valued at £770 million in 2008.
International Airline Group, the owner of British Airways and Iberia, has already expressed its interest in BMI, principally because of its slots at Heathrow, while Middle East airlines such as Abu Dhabi’s Etihad may also be keen for the same reason.
Lufthansa will also consider breaking up the group, which could involve a sale of BMI’s no-frills subsidiary BMI Baby, the regional division BMI Regional and possibly the group’s HQ at Donington Hall near Derby.
The German group took full control of BMI two years ago but attempts to improve its performance have been hit by steep rises in the cost of aviation fuel and also the recent uprisings in North Africa and the Middle East, which have badly affected demand for flights to the region.
BMI said it is discussing the options for its future with Lufthansa but no decision had been taken.
By: cloud_9 - 15th September 2011 at 16:42
Another possible suggestion was that VS might look to buy BD in order to gain access to their slots, but also to provide onward connecting services to domestic and European cities for those people who fly into LHR on a VS flight. Plus, this would also allow for VS to join Star Alliance, which is/was one of the options mentioned when SRB talked about what the future was for VS.:)
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September 12, 2011 at 12:29 pm