Lufthansa announced today, that they are selling the airline British Midland (BMI) to International Airlines Group (IAG), the parent company of British Airways and Iberia. So will it be a good move for business and consumers?
Well the real treasure for British Airways is the take-off and landing slots that BMI operates at Heathrow Airport. IAG currently operate approximately 45% of the Heathrow Airport slots so with the acquisition of BMI that could increase to 54%. It is rumoured that IAG would cut the domestic destinations and replace them with more lucrative long haul destinations to USA and Far East.
So possibly not good for domestic travel from Heathrow Airport but huge improvement for destinations such as key Chinese destinations currently not serviced directly to the UK at all. Get it, foreign exchange, better connections to the capital, more business generated, additional tourists etc. I think we need that, good for the economy!
Actually in my opinion, the quicker that a decision is made to build a new airport in the South East the better. Heathrow is running at full capacity and future growth and expansion, ruled out. A link between Heathrow and Gatwick, known as ‘Heathwick’, as a solution surely cannot be serious. I find it frustrating changing terminals never mind airports. We need, as a country, to compete with the likes of Amsterdam, Frankfurt and Paris as an international hub, we simply need more capacity.
In the end there will have to be give and take from all parties concerned on this issue. The time to do that is now before any election is looming. But surely a properly planned airport in the South East with good rapid transport links to the capital and further afield is the answer. As it stands the train routes, M25 and The Underground are running at breaking point. A new airport would also create heaps of employment.
But watch this space, the deal is not complete. Virgin Atlantic has also expressed an interest and they say they are still in the hunt with a deal to acquire the airline. If Virgin Atlantic is not successful they will be off to the competition board. All in all, it will probably come down to the regulators who will need to agree the sale.
Whatever happens we need competition to keep prices and services in line.
Well the real treasure for British Airways is the take-off and landing slots that BMI operates at Heathrow Airport. IAG currently operate approximately 45% of the Heathrow Airport slots so with the acquisition of BMI that could increase to 54%. It is rumoured that IAG would cut the domestic destinations and replace them with more lucrative long haul destinations to USA and Far East.
So possibly not good for domestic travel from Heathrow Airport but huge improvement for destinations such as key Chinese destinations currently not serviced directly to the UK at all. Get it, foreign exchange, better connections to the capital, more business generated, additional tourists etc. I think we need that, good for the economy!
Actually in my opinion, the quicker that a decision is made to build a new airport in the South East the better. Heathrow is running at full capacity and future growth and expansion, ruled out. A link between Heathrow and Gatwick, known as ‘Heathwick’, as a solution surely cannot be serious. I find it frustrating changing terminals never mind airports. We need, as a country, to compete with the likes of Amsterdam, Frankfurt and Paris as an international hub, we simply need more capacity.
In the end there will have to be give and take from all parties concerned on this issue. The time to do that is now before any election is looming. But surely a properly planned airport in the South East with good rapid transport links to the capital and further afield is the answer. As it stands the train routes, M25 and The Underground are running at breaking point. A new airport would also create heaps of employment.
But watch this space, the deal is not complete. Virgin Atlantic has also expressed an interest and they say they are still in the hunt with a deal to acquire the airline. If Virgin Atlantic is not successful they will be off to the competition board. All in all, it will probably come down to the regulators who will need to agree the sale.
Whatever happens we need competition to keep prices and services in line.
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