Flybe in talks to buy bmi regional?

Guys – just to reiterate. I would bet NO-ONE inside bmi or LH knows how this will play out. Anyone who says they ‘know’ this or ‘know’ that is just building up their part! As Cloud9 sagely noted, the staff will be amongst the last to know…

This is all about shareholder value, and how that can be maximised. It is little to do with who is going to do this route or that route, this is not an operational transaction but is driven by fiscal value.

I still maintain – having sat on quite a few airline boards – that LH do NOT have ALL the relevant numbers yet. I never reported ALL my numbers to my board members, just what was relevant, as per standard commercial practice.

TA

Can’t comment on the BMI/Flybe proposed takeover for obvious reasons

Is that perhaps because you don’t know what is going on yet…?

I met two bmi employees today and politely asked them if they had heard anything, and they said that there was a rumor going around that something was in the pipeline, but as per usual the normal day-to-day staff are the last to find out, which I find a bit disturbing seeing as its the day-to-day staff that are likely to be worse affected if it comes to job losses and redundancies…:(

Unlikely to have ALL the numbers – they will have the numbers that are published in the annual reports, and other numbers to which shareholders are entitled. I would be amazed if they have the route results, for example.

Lufthansa have not just been shareholders in the bmi group for several years – they’ve actually had seats on the board. Conversely to your opinion, I’d be amazed if they DIDN’T have access to bmi route results.

Andy

Unlikely to have ALL the numbers – they will have the numbers that are published in the annual reports, and other numbers to which shareholders are entitled. I would be amazed if they have the route results, for example.

TA

TA – I’d have thought LH already have full access to the numbers, considering they are on the main bmi group board and had been effectively controlling the purse strings anyway.

Andy – re the conference, I presume Jim French didn’t mention Flybe’s hope for expansion via acquisition, that had previously been mentioned in the press several months ago?

Two other rumours doing the rounds at the moment re bmir…….

Buyout by Eastern or potentially a Management Buyout (in conjunction with some other ‘interested’ parties).

Must admit I’m glad I got out when I did and moved to the dark side (offshore helicopters). Its a bit sombre over at bmir HQ at the moment.

Jim French spoke at the “Future of Air Transport” conference in London last week. We were told that direct questions about acquisitions were not going to be allowed, but he did say a few things of interest, amongst which he said:

* FlyBe messed with 737s a couple of years ago and got burned because it put FlyBe on the radar of Ryanair and EasyJet. They won’t make that mistake again, and will stick to lower capacities and their “niche” operation

* The acquisition of BAConnect did them a favour – with a backlog of aircraft on order, they would have had problems now were it not for the fact that they have been able to use the backlog sub for and to offload former BACon aircraft, rather than being forced into expansion just to occupy new deliveries

Make of the above what you wish in respect of bmiBaby and bmiRegional

Andy

A couple of words from an industry old hand, who has to put these sort of deals together, and clean up the mess afterwards.

1. Do not believe everything you read in the newspapers, especially in the rag that is the DM;
2. Do not waste time speculating on deals like this from an airline operations point of view – these deals are done from a financial point of view, and are based on preservation and enhancement of asset value, NOT generally on route rationalisation;
3. If I were a betting man, I would expect LH to be talking to NO ONE until they have Sir Michael’s keys, and complete access to all of bmi’s numbers. To do so before they have the right to do so is at best premature, and at worst downright unethical. Remember – this deal is NOT closed yet, that doesn’t happen until mid January. THEN the talks will start.

Trust me on this, and save the speculation, it is pretty futile. Right now, you are trying to double guess people who haven’t got their heads around the problems yet.

TA

I actually thought it had already been posted here

I think it was suggested as a likely outcome of LH buying BD rather than hard fact, the suggestion being that they would sell off the regional operations and retreat to LHR.

Now where have I heard that before?

If this does go ahead it will rather negate this recent bmi statement. http://www.flybmi.com/bmi/en-gb/about-us/information-centre/press-releases/20081016.aspx

1L.

Can’t comment on the BMI/Flybe proposed takeover for obvious reasons

We know, you don’t want to risk your retirement pension. :diablo:

I’ll stop it now.

:eek:…I am only 22!:)

I meant me mate, me 😉

Cheers tenthije, git, I know I am nearly a relic but I’m not ready for the brown cardigan and rocking chair just yet 😀

Can’t comment on the BMI/Flybe proposed takeover for obvious reasons

:eek:…I am only 22!:)

You are, but Deano is rapidly approaching becoming geriatric. Imaginary threads are only the first step Deano!

A bit more seriously though. Why would FlyBE want to add BMI Regional? They already cover the UK quite extensively. They are still working on absorbing BA-Regional, and BMI-Regional and -Baby where hardly shining beacons of efficiency or profitability.

(don’t worry, it’s old age, it happens to us all)

:eek:…I am only 22!:)

I actually thought it had already been posted here, obviously not. (don’t worry, it’s old age, it happens to us all)

C9

This is ancient news as well 😉

Oh, sorry…it seemed quite recent as the date says 30/11/08 in the article, obviously it has been on the cards for some time then?:o

C9

This is ancient news as well 😉