And the winner is... BA/IAG (binding agreement)

Discussion in 'bmi | Diamond Club' started by HaveMilesWillTravel, Dec 22, 2011.  |  Print Topic

  1. HaveMilesWillTravel
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  2. Lufthansa Flyer
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  3. Lufthansa Flyer
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  4. EZEIZA
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    There was never any doubt that IAG would get it.

    Virgins tactic was not a serious bid to buy bmi.
     
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  5. Lufthansa Flyer
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    no doubt? even though LH invited virgin to the negotiating table? there was always a chance that virgin could have walked away with bmi.
     
  6. cennas
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    Indeed..... :(

    Thank you BD....it's been a great 5 years...
     
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  7. EZEIZA
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    There was no chance of Virgin walking away with bmi........unless they too wanted to go bust.
     
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  8. HaveMilesWillTravel
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    What was their strategy then? Drive up the price for BA? Create media opportunities for Branson?
     
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  9. Lufthansa Flyer
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    hindsight being perfect.....
     
  10. EZEIZA
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    He did it because it strengthens his case for getting some of the bmi LHR slots which BA will have to give up.
     
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  11. HaveMilesWillTravel
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    So get some extra slots without the baggage that is BD attached to the slots?
     
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  12. Raffles
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    Nonsense. IF slots are released, they will either come with conditions, eg must be used to compete with BA on UK regional routes to Heathrow (which VS is unlikely to want to do) or BA will be allowed to sell them to the highest bidder, which given VS's financial state is unlikely to be them.
     
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  13. Lufthansa Flyer
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    agree, ba will not give up slots it just paid for. if you read the releases, it states that ba will still have proportionately less gates on a percentage basis than similar airlines at their respective hubs in europe. The EU / UK regulators will have no problems approving this.
     
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  14. EZEIZA
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    So why did Virgin submit a bid that didn't have a hope in hells chance?
     
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  15. Lufthansa Flyer
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    You keep saying that it never had a chance....How do you know? do you know the particulars?
    I doubt LH used Virgin as a pawn to bid up their pricing to BA. If they did, it doesnt appear to have helped.

    There must have been a viable intent by Virgin, but we'll probably never be privy to it. I think that Virgin may have had less than favorable plans for BMI employees because if you read LH's notes on the transaction. LH said a key component of the IAG deal was the ability to maintain some form of safety for some/most of BMI's personnel. That is just my guess at connecting the dots that I see in all the releases today. I
     
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  16. TrippePanAM

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    okay Virgin time to join star
     
  17. Globaliser
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    I haven't seen anything to suggest that LH "invited" VS in the sense of getting them there when they hadn't asked to be there in the first place.

    VS has always talked about being interested, but somehow never got around to making a bid until it was pushed into doing so by LH's announcement that it had reached agreement in principle to sell BD to IAG.

    Once VS had made a bid, LH could not practicably have refused to consider it, even if it would always have been an also-ran.
    I'm sure VS intended to make the bid at the price it stated, and that it would have followed through had (for some reason) its bid been accepted. Whether it was ever even potentially viable is a completely different kettle of fish - just look at the disparity in the amounts being offered. And if it was never even potentially viable, then that verifies all the comments you disagree with.
     
  18. ralfkrippner
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    Let's see if the authorities give their green light to the sale. If not, maybe VS gets a second chance...
     
  19. Euan
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    I would be amazed if it doesn't get the green light. No real reason why it shouldn't either.
     
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  20. Globaliser
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    Apart from anything else, it seems tolerably clear now that if IAG does not complete the purchase, BD will almost certainly be bust - whereupon there would be no functioning business left for VS to try to buy.
     
  21. Euan
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    Yes, correct. From WW's talk in Glasgow yesterday he was pretty clear - BMI is bust.

    And if IAG don't get BMI then the slots would be sold off with very few airliners interested in domestic/short-haul routes.

    I believe that Virgin have leased some of their existing slots to other airlines so why on earth would anyone believe that they would be interested in running domestic routes should they take over BMI? If they had really wanted to they could easily have done so using their spare slots and leasing a couple of suitable planes.
     

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