Virgin Atlantic to buy BMI?

[leemin]

Hi guys and girls,

Have just come across this report:

http://www.southalltravel.co.uk/news/Australia/800726861/Virgin-Atlantic-shows-interest-in-BMI.html

"Hello!!" - was my reaction.

VAtlantic is interested in purchasing BMI. Would be good for them, but would also solve problem of a lack of a proper European partner (presumably) for DJ.

Interested in thoughts/opinions of others on the potential takeover.


Sent from my iPhone using Aust Freq Fly app

 

[anat0l]

Let's see exactly how this pans out. It'd be interesting to see what VS do, but taking over BD is a big thing.

LH just might be happy though; BD is a bit of a commercial sink on them (especially Diamond Club).

The BD network is reasonable (excluding bmi baby), with more focus on Northern Africa and Eastern Europe.

VS would probably need to fully take over BD (i.e. make it a fully integrated airline of VS, or rebrand everything BD into VS) in order for Velocity to have a chance of allowing BD earn, burn and benefits. Otherwise, the negotiations of allowing BD crediting for Velocity would need to be through an "agreement" via VS, which is not necessarily an easy thing to do (or, VS may force Velocity to negotiate directly with BD).

It would be interesting for Velocity as that would inevitably make the European network much more flexible. I know at least one member here who wouldn't mind trying LAX-LHR-BSL-(train)-ZRH on VS/BD/SBB rather than LAX-ATL-ZRH on DL

 

[leemin]

VS would probably need to fully take over BD (i.e. make it a fully integrated airline of VS, or rebrand everything BD into VS) in order for Velocity to have a chance of allowing BD earn, burn and benefits.

As the airline CEO extraordinaire that I am , I would rebrand everything as VS after purchase.

Expands network without running two brands or starting new VS service on already competiive routes.

Otherwise, the negotiations of allowing BD crediting for Velocity would need to be through an "agreement" via VS, which is not necessarily an easy thing to do (or, VS may force Velocity to negotiate directly with BD).

True, although VS have a number of partnerships themselves (including with BD), so seem quite open to the idea. I was surprised to see they're partnered with Qatar. Would seem odd that they would make a partnership between a subsidiary and another 'Virgin family' member difficult.

Although all this is, of course, very hypothetical.

 

[pauly7]

VS have enough work catching up themselves to buy a new airline surely?

 

[JohnK]

Doesn't sound like the right foundation for a long term relationship but worth a try.

And way too early to even speculate Virgin Australia as a future partner.

 

[dajop]

VS have enough work catching up themselves to buy a new airline surely?

But in purchasing bmi would they be buying an airline or are they just playing the game of chess ..... ie buying LHR landing slots (and preventing BA/IAG from buying bmi and its landing slots)?

 

[notzac]

But in purchasing bmi would they be buying an airline or are they just playing the game of chess ..... ie buying LHR landing slots (and preventing BA/IAG from buying bmi and its landing slots)?

That's an awfully expensive game of chess right there .. And don't VS have enough problems of their own without going and buying more of them?

 

[dajop]

That's an awfully expensive game of chess right there .. And don't VS have enough problems of their own without going and buying more of them?

True. There is a lengthy discussion on FT, that discusses that IAG (BA/IB), Etihad & VS are all looking at bids for parts of BD, so it all seems rather complicated. Whatever the case, I'm going to switch my star alliance earning back to SQ, at least they're fairly stable.