Its not over! Lufthansa indicates VS is back in the mix

Discussion in 'Miles & More | Lufthansa, SWISS, Austrian/Partners' started by Lufthansa Flyer, Dec 12, 2011.  |  Print Topic

  1. Lufthansa Flyer
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    Lufthansa Flyer Gold Member

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    Lufthansa announced that it has entered into negotiations with Virgin Atlantic re: the disposition of BMI. A Lufthansa spokeswoman confirmed that LH started speaking in earnest with VS at the end of November. LH hopes to have a deal announced in next few weeks. Whether its with IAG or VS remains to be seen, but I'm crossing my fingers its VS. One reason is keep gates away from One World, and the other is to create the opportunity for VS to join *A. Let the speculation re-begin!
     
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  2. uggboy
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    uggboy Gold Member

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    Will he, or won't he! Thumbs up Richard!;)
     
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  3. canucklehead
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    canucklehead Gold Member

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    According to FT, The Virgin bid is £50M, whereas IAG is supposedly offering twice that amount.
     
  4. LETTERBOY
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    LETTERBOY Gold Member

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    VS seems to be banking on the fact that they will be able to close the deal quicker than IAG will, becuase of the competition issues. If IAG bought BMI, they'd have a stranglehold on LHR (even more than they do now).
     
  5. wombat18
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    wombat18 Silver Member

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    This has got to weigh on Lufthansa, as it means BA dominating trans-atlantic traffic but also a key gateway onto Europe. I'd believe they'd prefer to have Virgin, as a Star Alliance member, cover western Europe while Lufthansa focuses on central and eastern Europe, wouldn't they?
     
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  6. canucklehead
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    canucklehead Gold Member

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    One thing that was missing in this bid is whether Etihad would be joining in VS' bid. This was speculated in October and may have been a sore spot with LH as they have been battling the ME airlines.
     
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  7. NYBanker
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    NYBanker Gold Member

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    Agreed. VS is a better buyer from LH's competitive situation. Now, about that silly little price issue...
     
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  8. mowogo
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    mowogo Gold Member

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    Yes, but depending on the losses they are taking, it could actually be beneficial to get BMI offloaded quickly. Figuring that it would take 6 months for the competition review, plus another 3 months minimum to revise the deal to address the competition concerns, plus the time after all agreements are made for the revised deal to close on it, there could be some real benefits to taking less from VS just to offload BD
     
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