Posts Tagged ‘IAG’


[BBC News] An Aberdeen-based consortium is closing in on a deal to buy the regional division of BMI, following the takeover of the larger BMI airline by British Airways owner IAG.

IAG has indicated it has no plans to keep operating BMI Regional and BMI Baby

Granite Aviation is in advanced talks with IAG over the sale of the division for about £20m.

Aberdeen-based BMI Regional employs more than 300 people and operates 19 aircraft between smaller city airports.

An announcement on a possible deal is expected in the next two weeks.

If the regional deal goes ahead, Granite Aviation could take on the BMI brand when IAG stops using it on BMI’s mainstream services.

IAG has said it has no plans to keep operating……

Read the full story at BBC News…..


BBC news
27 April 2012


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[Evening Standard] David Cameron was today told by the country’s top airline boss to “sort out” the chaos at Britain’s borders or face losing billions of pounds in business and tourism revenues.

Walsh: Sort out Heathrow queues or lose business and tourists

Walsh: Sort out Heathrow queues or lose business and tourists

Willie Walsh, head of the Inter-national Airlines Group, which owns British Airways, Iberia and Bmi, said delays at Britain’s major airports had worsened significantly because of cuts and poor management and had now reached “unacceptable” levels.

He said business chiefs were shunning Britain as a result and that it was pointless for the Prime Minister to travel round the world proclaiming that Britain was “open for business” when visitors were treated badly on arrival.

Mr Walsh’s attack came as passengers reaching Heathrow complained of being treated like a “bunch of slaves” after waiting up to three hours with passport control desks unmanned.

Some complained of spending longer in immigration queues than on their flights and of being left without food, water or adequate assistance. Others said they were “never coming back” because of the “nightmare” delays.

The problems add to mounting anger about queues that left thousands of travellers, including Formula One teams and TV historian Mary Beard, suffering delays at Heathrow this week. Immigration unions have fuelled the concerns by claiming waits of up to five hours are happening daily at airports and passengers are being “kettled” to cope with the queues.

In an interview with the Evening Standard, Mr Walsh said the problems were inflicting economic damage on the…..

Read the full interview at The Evening Standard…..


Martin Bentham
26 April 2012



[Reuters] British Airways and Iberia owner IAG will close two loss-making subsidiaries inherited from the acquisition of Lufthansa’s UK unit Bmi if it is unable to sell them, IAG’s chief executive Willie Walsh said on today.

IAG is struggling to sell the low-cost and regional divisions bmibaby and regional

IAG is struggling to sell the low-cost and regional divisions bmibaby and regional

IAG last year agreed a 172.5 million pounds deal to buy bmi and plans to keep the traditional airline, but is struggling to sell the low-cost and regional divisions bmibaby and regional.

“We are in discussions with parties interested in those airlines. We are ready to do a deal and capable of doing so, but if we don’t see any movement on selling them… then we will look to close those businesses,” Walsh said.

“They do not form part of the future of IAG,” he told the AFCA aircraft finance conference in Barcelona……

Read the full story at Reuters….


Reporting by Tim Hepher
Reuters – 25th April 2012



[Independent] UK growth is being “undermined by Government policy”, the head of British Airways’ parent company said today.

Walsh "it's a terrible shame that Government policy in the UK is damaging our ability to connect with these Asian markets."

Walsh "it's a terrible shame that Government policy in the UK is damaging our ability to connect with these Asian markets."

Airlines were facilitating growth but the Government had to understand that it was hampering growth, said Willie Walsh, chief executive of International Airline Group (IAG).

Speaking at Heathrow airport today, Mr Walsh said Prime Minister David Cameron had been promoting UK trade in Asia of late.

Mr Walsh went on: “While the Prime Minister talks about the fantastic opportunities for Britain, it’s a terrible shame that Government policy in the UK is damaging our ability to connect with these Asian markets.”

Mr Walsh went on: “UK growth is being undermined by Government policy and that’s a terrible thing to have to say.

Mr Walsh is keen to see the Air Passenger Duty (APD) airport departure tax scrapped as well as Heathrow being expanded so that Britain can connect with vital Asian markets.

However, the Government has ruled out a third runway at Heathrow.

He said today: “It’s a nonsense to say that British business can be competitive if we can’t fly to these (Asian) destinations.”

Mr Walsh went on: “This is a Government of contradictions. They talk about the importance of competitiveness yet we have APD.”

Asked about the ability of Heathrow to cope with the Olympic Games traffic this summer, Mr Walsh said the problem of immigration queues was not just about Heathrow but about “inadequate resources”.

He said Heathrow was a “fantastic airport” but efforts to improve things there were being “undermined” by this lack of resources.

Read the full story at The Independent….


PETER WOODMAN
MONDAY 23 APRIL 2012



BERLIN: German airline Lufthansa AG says it has completed a 172.5 million pound ($276 million) deal selling its loss-making British Midland Ltd. subsidiary to the parent of rival British Airways. 

Lufthansa said today the sale to BA parent IAG took place after the close of business on yesterday

Lufthansa said today the sale to BA parent IAG took place after the close of business on yesterday

Lufthansa said in a statement on Friday the sale to BA parent International Airlines Group took place after the close of business on Thursday.Lufthansa says it expects to lose money on the deal, but that the costs will amortize within a year and that the deal will ultimately strengthen its financial position.

It says “price adjustments have been agreed as part of the transaction structure” and that the specific net purchase price will be determined at the end of the second quarter.

Lufthansa and IAG announced an agreement in principle on the sale in early November…..

Read the original story at The Economic times…. 


The Economic Times
20 APR, 2012



[Independant] Simon Calder: End of the runway for BMI, but will passengers suffer?

What will it all mean for passengers – and staff?

What will it all mean for passengers – and staff?

BMI could be about to vanish. British Midland, as was, has done wonders for UK travellers. But by Friday the Heathrow-based part of its operation is set to become part of IAG and will be subsumed into BA. What will it all mean for passengers – and staff?

Remind me of the tangled history of BMI?

It wasn’t easyJet that opened up the skies of Europe – it was British Midland. Under Michael Bishop (now Lord Glendonbrook), the airline demanded the right to compete against the established “flag carriers” in the 1980s – first of all taking on British Airways from Heathrow to Belfast, Edinburgh and Glasgow, then expanding into Europe. It helped break the cartel that kept fares prohibitively high.

Sadly, for the past decade BMI has found it impossible to compete with no-frills airlines, and at present it’s losing £5 per second. Lufthansa, which is its very unwilling owner, has long been keen to offload BMI, and by Friday it should become part of IAG, the company that owns BA and Iberia of Spain.

Last week BA revealed plans for assimilating BMI that will see nearly half the 2,700 staff lose their jobs. How are the job cuts decided?

As is so often the case, it’s the back-office staff who will suffer most. BMI has the finest HQ in aviation, a stately home close to East Midlands airport called Castle Donington. But many of the functions carried out there, from marketing to finance, will simply be absorbed by existing BA departments with little room for staff to be tranferred. Survival prospects are highest for front-line staff at Heathrow – 1,100 ground staff, cabin crew, pilots and engineers will find that they are working on planes with a different livery.

If BMI is such a basket case – why is BA taking it over?

One word: slots. Because BA is already by far the biggest airline at Heathrow, it can extract the maximum value from the precious permission to take off and land at the world’s most congested airport. The takeover will win it an extra 56 pairs of slots a day, but BA is likely to surrender a quarter of those in return for the deal getting past competition regulators. That is not enough for Sir Richard Branson, president of Virgin Atlantic, who has vowed to fight the deal “in order to protect the millions of passengers who will see their options reduced by the takeover”.

What does it mean for passengers?….

Read this excellant study of Bmi’s takeover by Simon Calder at The Independant….


Simon Calder – The Independant
WEDNESDAY 18 APRIL 2012



Dubai is set to overtake Heathrow by 2016 as the world’s largest international airport.

By 2020 Dubai expects to cater for 90 million passengers. Photo: Alamy

By 2020 Dubai expects to cater for 90 million passengers. Photo: Alamy

Last year Heathrow handled 69.4 million passengers. With both parties opposing expansion and the building of a third runway, it is set to be eclipsed by   its international vals.

By 2020 Dubai expects to cater for 90 million passengers thanks to expansion of existing terminals and the construction of a new one capable of handling   20 giant Airbus A380s.

Even this will be dwarfed by Dubai’s plans for a new monster airport by the middle of the next decade.

With five runways, it is anticipated that it will be cater for 160 million people by the late 2020s.

Its expansion plans along with the aggressive growth of Paris and Frankfurt has intensified pressure from aviation and business leaders for the   Government to have a change of heart.

Katja Hall, the CBI’s Chief Policy Director, warned that Britain was in danger of becoming a “branch line” unless it action was taken.

“The eleven major policy reviews on airport capacity since the last full-length runway was opened in the south of England in 1948 illustrate the   degree of political challenge here. But the consequences of this indecision   can no longer be ignored,” she said.

“The UK is becoming a branch-line destination on the route map of global airlines. This is a damaging break in the UK’s export chain, and its   consequences are a real concern for businesses across the country.”

Willie Walsh, the head of the International Airlines Group, welcomed the Coalition’s decision to reopen the debate on runway capacity in the South   East, but added that all options should be considered.

James Hogan, the chief executive of Etihad, also called for Heathrow to be allowed to expand…..

Read the full Daily Telegraph story….


David Millward

By , Transport Editor, Tokyo
18 Apr 2012



(Reuters) – Several international operators have expressed interest in the privatization of Portuguese airline TAP, its chief executive Fernando Pinto said on Tuesday, attracted by its fast-growing routes to South America and Africa.

"I cannot give names but what I can say is that the privatization is generating great interest," Pinto told journalists.

"I cannot give names but what I can say is that the privatization is generating great interest," Pinto told journalists.

Portugal’s government has promised to privatize TAP, possibly this year, under the terms of a 78 billion euro ($102 billion) European Union/International Monetary Fund bailout.

International Airlines Group (IAG) (ICAG.L), formed by the merger of British Airways and Iberia, said in October it would look at TAP when the Portuguese government starts the formal sale process, its Brazilian routes being of particular interest.

“Besides IAG, others have shared with us their interest but, because they did so unofficially, we cannot name them,” the TAP CEO said.

“The main interest is the Lisbon hub, it was thanks to this geographical position that TAP has achieved everything”.

TAP’s slots at Lisbon airport provides access to Africa and both North and South America and have allowed the company, which covers around 75 routes in 34 countries, to become the leader in air travel between Europe and Brazil.

Pinto added that it will be up to the Portuguese government to decide if it wants to privatise the whole company or just part of it.

Read the full story at Reuters….


By Sergio Goncalves
LISBON | Tue Apr 17



The new owners of airline BMI have confirmed they will close their base at Belfast City Airport.

BMI currently operates out of Belfast City Airport with daily flights to Heathrow

BMI currently operates out of Belfast City Airport with daily flights to Heathrow

Sixty customer service employees are being issued with redundancy notices.

Around 40 cabin crew and engineering personnel will have to commute to London to stay employed. BMI currently operates out of Belfast City Airport with daily flights to Heathrow, which have not been affected by the deal.

IAG bought BMI from Lufthansa in a £172.5m deal last year and said at the time jobs could be at risk. Davy McMurray, from the union Unite, said:”We’ve got no information from the company.

“The employees have got no information from the company. “I’m talking about people who have worked for BMI for 15-20 years and at the last fence, they’re not being told anything. It’s a disgrace.”

Ian Paisley Jnr, MP for North Antrim, said the situation needs to be urgently addressed.,,,

Read the full story at UTV Live News….


Published Monday, 16 April 2012
© UTV News



Translated fron an original Spanish text story:

(Aeronoticias.) – The Lufthansa group returned almost double the profit  of that acheived by the IAG group airlines, Iberia and British Airways and triple that recorded by easyJet last year in terms of operating profit, this is according to a report from Eurocontrol, which shows the impact on the airline market of consumer uncertainty and high fuel prices.

The ranking of European airlines by operating profit is headed by Lufthansa

The ranking of European airlines by operating profit is headed by Lufthansa

The ranking of European airlines by operating profit is headed by Lufthansa who last year earned 820 million euros, representing 20 percent less than tha returned in 2010, a drop they attribute to the losses at Bmi.

Second in the table is the IAG Group which last year doubled its operating profit for the year 2010 to achieve 485 million euros, according to Eurocontrol this is due to the success of the newly combined group of British Airways and Iberia under IAG.

EasyJet is the third airline in Europe to have managed to close 2011 with a profit of 297 million, 72 million more than in 2010, as recorded by the report by the European body. Ryanair does not feature on the table because it has a different fiscal year.

The biggest losers:

On the opposite side are Air France-KLM, SAS and Air Berlin all who closed last year in the red. Specifically, the Franco-Dutch airline reported a loss of 353 million euros in 2011 compared with 28 billion gained in operating profit the previous year.

Despite having managed to reduce their losses by almost half compared to 2010 the SAS Group also closed 2011 in the red, posting losses of 185 million euros.

Air Berlin finally ended last year with an operating loss of 247 million euros versus 17 million that was left in 2010. The German company attributed the losses to the rising oil prices and the introduction of the German tax on aviation.

Original story (in Spanish) at aeronoticias.com.pe


SUNDAY, APRIL 15, 2012
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