SPAA gives guarded welcome to bmi takeover
The Scottish Passenger Agents’ Association has given a ‘guarded welcome’ to IAG’s approved takeover of bmi from Lufthansa.
President Kevin Thom said the SPAA will be seeking assurances that ‘all our regional air routes – not least those from Glasgow – will continue to prosper and grow.’
"We also urge IAG," he added, "to retain as many bmi managers and staff – including those who have worked so hard in the Scottish market in such difficult circumstances – as is possible."
British Airways’ parent IAG secured approval on Friday for the takeover of bmi from Lufthansa.
IAG, which also owns Iberia, has agreed to give up:
– seven daily slot pairs between Heathrow and Edinburgh and/or Aberdeen
– to use five daily slot pairs between Heathrow and Nice, Cairo, Riyadh, Moscow, Edinburgh and/or Aberdeen
– to lease two Heathrow daily slot pairs to Transaero
– and to offer seats to other airlines for transfer passengers on the BA/bmi short and mid-haul network.
IAG chief executive Willie Walsh said: "We’re delighted the EC has given competition approval for our acquisition of BMI. Their decision follows a thorough review during which the views of key stakeholders have been taken into account.
"This is great news. Over time we will launch new long-haul routes to key trading nations that are currently not served from Heathrow while supporting our short-haul network. This is good for UK business and UK consumers. We have already announced that British Airways will re-start flights from Belfast to Heathrow, maintaining important economic links.
"Expanding our longhaul network also helps Heathrow grow as an international hub airport despite its infrastructure constraints.
"This deal will maintain high quality jobs at bmi and create similar jobs when we expand. More British jobs will be saved than if bmi had closed. British Airways will consult with bmi staff and their unions as soon as possible."
EU Competition Commissioner Joaquin Almunia said: "The commitments package includes an appropriate number of very sought-after slots at London Heathrow as well as far-reaching feeder arrangements as regards connecting passengers.
"We are therefore satisfied that the competitive dynamics will be maintained so as to ensure choice and quality of air services for passengers."
Virgin Atlantic had strongly opposed the deal and tried to put in a counter bid.
Meanwhile, Ryanair’s Michael O’Leary said the approval shows "the EU Commission has one rule for Europe’s flag carriers, but different rules for Ryanair".
by Bev Fearis and Diane Evans
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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