IAG : BA & BMI

British Airways has entered talks to buy BMI, the second largest carrier at Heathrow Airport. BA Chairman Martin Broughton has held talks in Germany over the weekend with Lufthansa, BMI’s parent company.
However BA has declined to comment on the speculation.

A number of airlines, including Virgin Atlantic, are also thought to be interested in buying BMI – but this is not the first time that the same carriers have expressed a similar interest in the carrier.
Rumours leaked that BA was planning a £1 billion takeover of BMI in 2007, after it emerged that BMI’s ex Chairman, Sir Michael Bishop may sell his 50% share in the carrier.

BMI would be an attractive proposition for any airline attempting to establish a transatlantic presence, since it owns 13% of Heathrow’s take off and landing slots, which penetrates the US.

An acquisition of this nature would be one way for BA to gain more slots at Heathrow which has also announced plans to merge with American Airlines.
The Financial Times reported that BA’s CEO Willie Walsh said the airline would consider purchasing BMI’s slots at London Heathrow if they became available, “In the current environment, it is difficult to argue we should go out and acquire those slots. Having said that, it may be the only opportunity we ever get,”

If the acquisition were to go ahead, BA would become the dominant carrier domestically and on a number of routes from Heathrow. However this could be bad news for passengers as it may lead in a hike in ticket prices.
It is thought that this deal would have no impact on BA’s discussions to acquire Spanish carrier Iberia.

Paddy a écrit:Parmi les attraits qu'offre BMI, voir aussi les droits de trafic à London Heathrow [Vous devez être inscrit et connecté pour voir cette image] Les places sont chères !

FRANKFURT, Sept 19 (Reuters) - Deutsche Lufthansa ([Vous devez être inscrit et connecté pour voir ce lien]) is aiming for an agreement with Scandinavian SAS ([Vous devez être inscrit et connecté pour voir ce lien]) by the end of 2009 on the stake it does not already own in Britain's bmi airline [BMID.UL], management board member Stefan Lauer told a German magazine.
"I assume that there will be a solution by the end of the year," Lauer was quoted as saying in an interview with WirtschaftsWoche. He left open whether Lufthansa would buy the remaining 20 percent in bmi which SAS owns.
In June, Lufthansa struck a deal with Sir Michael Bishop to acquire his stake of 50 percent plus one share in bmi, raising its stake in the company to 80 percent. [ID:nLM114630]
German newspaper Frankfurter Allgemeine Zeitung reported earlier this month that bmi had attracted interest from 12 potential buyers, including British Airways ([Vous devez être inscrit et connecté pour voir ce lien]) and Virgin Atlantic. [ID:nL9377714]
"Much is being written and I do not comment on it. At the moment, we are restructuring the company (bmi) and after that there has to be a decision on what offers the best strategic perspective for bmi," Lauer said.
Lufthansa previously said it is considering various options for bmi -- which controls 11 percent of take-off and landing slots at London's Heathrow airport -- including continuing the carrier's operations as well as selling the company.

Hugot2 a écrit:BA-Iberia semblent avoir remporté la partie pour B.M.I.

Pour BMIbaby et Regional...?

[Vous devez être inscrit et connecté pour voir ce lien]

PARIS — British Airways and the Spanish carrier Iberia beat out Virgin Atlantic on Thursday in the bidding for British Midland International, the unprofitable airline being sold by Lufthansa of Germany.

The International Airlines Group, the parent company of British Airways and Iberia, will pay £172.5 million (about $270 million) for the airline, known as B.M.I.

That topped a competing bid from Virgin Atlantic Airways.

The purchase would give the group 56 additional daily takeoff and landing slots at Heathrow Airport, Europe’s
busiest, where it already controls 45 percent of the commercial air traffic.

International Airlines warned that it would make a “significant” reduction in its £172.5 million offer if Lufthansa did not find other buyers for Bmibaby and BMI Regional before completion of the deal, which is expected in the first quarter of next year.

“BMI Regional and Bmibaby are not part of our plans,” International Airlines said.

B.M.I.said in October that it was in “advanced discussions” to sell BMI Regional by the end of the year to a British investment group, which it did not identify.

But according to one person with knowledge of Lufthansa’s plans, it has held initial discussions with a British-based aviation company about a possible sale.

The German carrier will be selling its B.M.I. investment at a loss.

Lufthansa paid £223 million, including an initial stake purchased from B.M.I.’s founder, Michael Bishop, in 1999.

Lufthansa was then forced to take majority control when Mr. Bishop exercised a put option of his 50 percent plus one share stake in 2008.

Rien n'y fit ! Lufthansa a dû s'exécuter !

• "La gestion du Groupe Lufthansa a été mauvaise", = "La gestion du Groupe Bmi par Groupe Lufthansa a été mauvaise".
  

Lufthansa Group has detailed the harsh conditions under which it will sell BMI to International Airlines Group, including a potential substantial net loss from the deal. Lufthansa faces heavy net loss from BMI sale to IAG.

While the two sides have agreed a binding cash purchase price of £172.5 million ($271 million), this is subject to heavy price reduction if Lufthansa does not choose to sell the budget arm BMIbaby before completion of the sale. Lufthansa also currently has the option to sell BMI Regional.

Lufthansa admitted that, after agreed reductions, the net purchase price is "expected to be significantly negative".

Normal ! Au lieu de créer de la valeur,.... l'apport et la gestion lamentables de Groupe Lufthansa dans l'affaire Bmi, a détruit de la valeur. Si, si, .... il y a eu destruction de la valeur, au lieu de création de la valeur !

Under the agreement with IAG reached today, the German company will also take on BMI's defined pension benefit scheme through a UK holding company.
But Lufthansa said that the decision meant it would be "dissociating from a sustainably loss-making subsidiary".

British Airways parent IAG will gain BMI's slot portfolio at London Heathrow, increasing access by up to 56 daily slot pairs.

The agreement is still subject to regulatory clearance.

Chief executive Willie Walsh said the acquisition would give IAG a "unique opportunity to grow at Heathrow". He added that the company would maintain a "comprehensive domestic schedule" as well as expand its long-haul network.

Both sides are intending to complete the transaction by the end of the first quarter of 2012.

Lufthansa chief Christoph Franz said it was "especially important for us to find the solution that best provides the company and its employees with sustainable prospects for the future".

IAG is set to be given the go-ahead by the EU to buy Lufthansa's British airline bmi after offering to give up additional airport slots, a person familiar with the matter said on Thursday.

IAG has reached a deal worth GBP£172.5 million (USD$273 million) to buy its smaller rival and had initially proposed to relinquish 10 slots. It increased the number to 14 slots after rivals complained the concessions were not sufficient. It was not clear at which airports the 14 slots are located.

Antoine Colombani, a spokesman for the competition unit at the European Commission, declined to comment on the case. IAG and Lufthansa also declined to comment.

The European Union executive was due to decide by Friday whether to give the deal regulatory clearance.

IAG trumped rival bidder Virgin late last year in the race to acquire loss-making bmi, which has coveted slots at London's Heathrow airport, Europe's busiest.

IAG currently has a 43.1 percent share of the take-off and landing slots at Heathrow. Together, IAG and bmi have a combined share of 53 percent of the airport's slots.

• OECD REVIEWS OF REGULATORY REFORM : REGULATORY REFORM IN FRANCE
  
• REGULATORY REFORM IN THE CIVILAVIATION SECTOR
  

Virgin has again urged EU regulators to block the deal, saying it would leave competition in British aviation distorted.

"BA's proposed competition remedies to get this purchase cleared are woefully inadequate and will ensure that BA continues to control all of the key domestic and some international routes," Virgin founder Richard Branson wrote in a letter to the EU's commissioner of competition, Joaquin Almunia.

"I am really battling to understand why the commission seems to be bending over backwards to clear this deal at phase one rather than submitting it to the proper scrutiny intended in phase two of the clearance process."

Branson added that Virgin was prepared to re-open discussions with Lufthansa if the deal was not cleared.

IAG's next deal may be made further afield after it said on Thursday it was looking at investing in Japan Airlines' planned initial public offering later this year.

(Reuters)

EU antitrust regulators gave a conditional greenlight Friday to a bid by International Consolidated Airlines Group (IAG), owner of British Airways, to buy rival British Midlands from Lufthansa.
© 2012 AFP

Virgin Atlantic Airways said it would appeal a European Union decision to approve British Airways owner IAG's takeover of British airline bmi, which Virgin had sought to buy itself.
The European Commission agreed the takeover last month, saying IAG's concessions, which included a pledge to give up landing slots at London's Heathrow airport, Europe's busiest, were sufficient to address competition concerns.

But Virgin boss Richard Branson challenged this in a statement on Sunday, saying the deal would limit consumer choice. ***

He added that Virgin would bid for the slots being put up for sale. ******

(Reuters)