Virgin proposes merger with LH

[Scrooge]

Following on from THIS thread in the BMI forum where a discussion is being held concerning the buy out of SMB by LH, VS has responded with this.

Virgin Atlantic has proposed combining its operations with Lufthansa to create a European super-carrier following the German national airline's 400 million (318 million) acquisition of Britain's bmi.

Lufthansa now owns 80 per cent of bmi, the former British Midland, and is expected to make a bid for the remaining 20 per cent, which is owned by Scandinavian Airlines (SAS). SAS has put both the stake and itself up for sale.

Virgin Atlantic, the airline owned by Sir Richard Branson, today responded to the purchase of bmi by offering to combine its own operations with Lufthansa's in a partnership that would create Europe's dominant airline.

A tie-up with Virgin would allow the German carrier to use the better-known Virgin brand to expand internationally and at Heathrow in particular.

link to full article

Your thoughts

I take it that would leave BA & AA open to finalise there merger deal then.

cheers
alex

Would we need to get checked in & board early to get our towels on the seats should this happen...?

[Scrooge]

I would say not, though Howard's CH clothing may become more popular.

Originally posted by av_norw792
I take it that would leave BA & AA open to finalise there merger deal then.

cheers
alex

Consider that a done deal.

Mods - we've now got two threads ... help!

Don't know I am allowed to lift a sentence from that link (so delete if necessary) but the sentence 'Virgin's offer was vague but is understood to include either buying bmi from Lufthansa' jumped out from that page [:?]

David

[Scrooge]

Originally posted by slinky09

Originally posted by av_norw792
I take it that would leave BA & AA open to finalise there merger deal then.

cheers
alex

Consider that a done deal.

Mods - we've now got two threads ... help!

Fixed, no issues, move along, nothing to see there [:w]

As this one refers to the VS offer, lets keep this to VS, the other one to BMI.

So..would VS still exist if this happens? I kind of hope so; I prefer VS to LH any day.

It does amuse me that SRB tells everyone that it would be bad for the consumer if BA/AA merge and yet when VS want merge .. in the words of Steve Ridgway 'It would be good for consumers and for UK plc '

MS[:D]

[Scrooge]

I have a feeling VS is grasping at straws with this.

What I would hope for if it does happen is the VS fun and the LH efficiency, and no more cost cutting.

A marriage made in hell in my mind.

[Scrooge]

Originally posted by ukcobra
A marriage made in hell in my mind.

Hell meaning on time flights, decent food, consistent service ?

Oh and probably German writing in the toilets, to go with the Italian in the LGW fleet.

[buns]

Surely there is the little matter of the Singapore Airlines stake in VS[:?][:?][:?]

Or is this a clever way of saying Lufthansa is going for that too[:0]

buns

[Scrooge]

They could buy out the SQ stake first or they could just take SRB's stake, though I think SQ has first refusal on that....No hang on, that can't be right, isn't there an ownership limit for non EU carriers ??

Agree VS is clutching at straws, as I said in my post in the original thread VS's position today is like the little minnow looking up at the big cat licking its lips saying 'please don't eat me'. Much as I love flying on Virgin, I've no great admiration for the corporate strategy ... even though this has been coming for ages VS is well and truly exposed with no visible strategy. Begging LH for some vague partnership (not not a merger, they would wish) in public is pathetic, it doesn't even deliver the usual marketing spin.

Mssrs Ridgeway and Branson have a real challenge now ... LH will be using BMI to draw traffic to its intercontinental operations or setting these up in direct competition at LHR. VS could lose the feeder business BMI provides, VS has no visible expansion in terms of slots and if runway 3 doesn't go ahead long term expansion options are restricted. Add this to the continuing inability to link up other Virgin airlines around the world in codeshares etc ... BA /AA / Iberia ... it's not a pretty picture.

Further, LH's operations are slick and the premium experience at Frankfurt is very good, as Star Alliance all move to T1 / Heathrow East in coming years who's to say they can't compete with VS at T3 in every regard.

VS should have bought BMed or GB Airways instead of hoping for some gift from LH / BMI.

Ooops, just my manypennyworth!

[Scrooge]

Kind of scratching my head as to which thread to post this in, but here goes...

LH you some of the morning slots to set up flights to the US under the BMI label, the afternoon slots are used for domestic and the evening slots used for middle east.

So yes I can't see a reason why LH would need VS at this point unless they really want to go after BA, in which case they would fold BD into VS.