Rumor of Announcement

Discussion in 'bmi | Diamond Club' started by Lufthansa Flyer, Oct 3, 2011.  |  Print Topic

  1. Lufthansa Flyer
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    Lufthansa Flyer Gold Member

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    A fellow MP'er posted in another thread that there may be a BD announcement tomrw. Just FYI in case we wake up to something from them.
     
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  2. JohnDeere19
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    JohnDeere19 Gold Member

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    Uh oh...I hope it doesn't mean that people should use their BMI miles today.
     
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  3. Lufthansa Flyer
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    Glad I used miles to upgrade upcoming trip to from C to F. miles well spent I think.....
     
  4. Always Be Flying
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    Always Be Flying Silver Member

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    Looks like I have left my DC account stagnant for good reason - looking for a "new" program and am considering a return to heavy DC use, but I'm pretty worried about the program's future.
     
  5. NYBanker
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    Are there any examples of major ff programs going bust and pax losing their miles? Did Ansett have a points scheme?
     
  6. jupper
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    jupper Silver Member

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  7. gleff
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    gleff Co-founder

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    I seem to remember someone who bought an Ansett lifetime lounge membership (US-based, it was a cheaper way to get United lounge access) the week before the airline went into receivership. They ultimately got their money back from their credit card company.

    An uncle was scheduled to fly on an Ansett-issued award ticket on United, about a week after the airline went under. The itinerary was cancelled, United would not honor the Ansett ticket. Then apparently Ansett awards were ultimately honored and he rescheduled.

    But I don't think we're looking at Ansett, literally a shutdown of operations. I'm still crediting miles to BD ... eg Hilton double dips. Though it's a really curious open question what's going on here, they were going to get folded into Miles & More, then they weren't.
     
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  8. NYBanker
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    Interesting background. Thanks for sharing.

    Beyond the potential for Ansett's points to have evaporated, can you think of any other major carriers whose points schemes went to nil? Twa and panam were all picked up by other carriers. Everyone reaffirmed who went through bankruptcy in the early '00s.

     
  9. gleff
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    Major carriers? Mexicana, I guess. Otherwise it's the Midways of the world that come to mind.
     
  10. cennas
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    cennas Gold Member

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    Let's hope it stays as a rumor :(
     
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  11. Lufthansa Flyer
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    so far no news out of the uk.......so maybe its not a formal press release type of an event.
     
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  12. flywrite

    flywrite Active Member

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    Would miles not be transferable to Star Alliance in general, or another Star Alliance carrier if BD went down the pan?
     
  13. gleff
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    gleff Co-founder

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    No, not likely.

    Although already-issued awards on BD ticket stock should be honored by other Star Alliance members, as they were with Ansett (and, I think, Varig?).
     
  14. flywrite

    flywrite Active Member

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    Virgin have announced again that they want to buy BMI. Fingers crossed
     
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  15. Wandering Aramean
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    Wandering Aramean Gold Member

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    No.

    But unless the company liquidates the miles are relatively safe. And even if the company does liquidate there's a chance someone will buy the miles and the program to "buy the customers" as part of the process.
     
  16. gleff
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    Hate Virgin Flying Club. Would rather have Miles & More miles if I cannot keep my Diamond Club miles.
     
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  17. GUWonder
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    GUWonder Silver Member

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    If BD were to liquidate due to insolvency, it's well possible that acquisition of the BD customer lists will not involve honoring the full mileage balances in the BD accounts. In such circumstances, I rather expect that the mileage balances won't be protected by any party acquiring BD assets in the course of insolvency proceedings. If BD were a much bigger carrier and had alot more assets, then the expectation would be revised.

    A VS acquisition of BD combined with enrollment into Star Alliance in the course of picking up BD sounds like something that would work for me -- I just wouldn't be accumulating miles from flights in the programs of such (combined) operating carrier after a merger was consummated.

    CO/UA ought to be supporting VS's enrollment into *. SQ ought to be supporting it too. The key thing is what LH thinks of it. Perhaps LH is willing to accept VS in exchange for getting BD off its hands, but that makes LH look desperate.
     
  18. jupper
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    I wonder if there might not also be something of an UK/EU approval process involved ? I can imagine that BA gobbling up BD would seriously transform the inner-UK market making BA king. LH probably wants to prevent that from happening, though not at any costs. But I can see regulators frown upon it as well...

    Do note that a bunch of BD routes were pulled down after LH acquired them. A lot of *A routes from/to LON are now via LH hubs (at least AMS is :D), building that back up would require serious commitment from VS and partnership with LH.

    It all depends on how bad *A and LH want to continue having a LHR operated outfit. Handing that over to BA probably is not what the other *A carriers would like to see happen either...

    Of course this is all speculation, but it seems the LH/LX/OS integration did not pand out as well with BD, so LH might want to change the concept, and partner that with VS, Lufthansa UK doesn't have that ring to it that Lufthansa Italia has though... :)
     
  19. Lufthansa Flyer
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    Sq has a huge stake in vs, so hopefully they are supporting thi internally. Hope it's not just sir Richard trying it on his own
     
  20. Wandering Aramean
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    Why?

    VS competes with CO/UA on IAD/SFO/LAX/ORD/NYC-LON flights. There's less value in having them as a partner there. Many of the other routes that VS operates (e.g. HKG, DEL, BOM, SYD, DXB) are already destinations served natively by UACO as well. The couple destinations which aren't served by UACO are well covered by other partners from the LH group.

    Ten years ago VS brought something to the table. Today it offers very little to any large network carrier as a partner.
     
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  21. Euan
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    Euan Silver Member

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    I wouldn't be so sure given SQ were considering selling their stake in VS (www.centreforaviation.com/analysis/new-singapore-airlines-ceo-takes-over-considers-selling-virgin-atlantic-stake-42958).

    There has been very little from Sir Richard since IAG's proposal for BMI hit the news. No doubt if it progresses anywhere he'll be up in arms about it but frankly if he's that annoyed he should put his money where his mouth is. BA's real interest though is in the LHR slots.
     
  22. From NYC
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    Would it make a difference in your opinion if VS did buy BMI? There’s also talk that Abu Dhabi groups are interested in helping them with the buy.
     
  23. tosc
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  24. Wandering Aramean
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    Not much. The regional connections via LHR do provide some value but the long-haul connections on VS metal don't really fill too many holes in the *A route network.
     
  25. From NYC
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    True; just, perhaps different timings on arrivals. And it looks like regional, which I’m assuming includes Ireland since that’s the lounge one uses at LHR for flights there, will be going to an entirely different entity. Would like them to remain *A.

    To a certain extent, VS reminds me of Pan Am, in the sense that they have international routes, far less than Pan Am did, but just don’t have a domestic or regional feeder.
     

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