30 October 2008

Virgin expresses interest in tie-up with bmi

Virgin Atlantic has outlined its interest in joining forces with bmi under its new ownership.

Virgin chief executive Steve Ridgway said after Lufthansa unveiled plans for a tie-up with bmi: "Everyone has speculated that it would make sense for Virgin Atlantic and bmi to combine their long-haul and short-haul networks.

"There is now a major opportunity to do that and create a new and even more effective competitor to British Airways.

"I am sure that Lufthansa realises the future opportunities and this could be a really good example of the right industry consolidation. It would be good for consumers, for UK plc and European avaiation's competitiveness."

Ridgway also praised bmi's founder Sir Michael Bishop, calling him one of the icons of UK aviation.

"He has been a considerable force in championing the cause of the consumer and, along with Virgin Atlantic, has helped to provide much-needed competition to BA, and choice for consumers," he said.

"Now we are about to enter the next phase of bmi's future and a turning point in aviation."

Lufthansa's takeover of bmi was announced to analysts yesterday (see previous TravelMole story).

Some analysts believe Lufthansa agreed to take a majority stake in bmi to obtain its valuable 11% share of take off and landing slots at Heathrow in order to start transatlantic services from the London hub, while also strengthening the Star Alliance presence at the airport against British Airways and its oneworld alliance partners.

By Bev Fearis