It seems there is a fight brewing for BMI Baby. Yes, I laughed at that too. But apparently people are interested in the British Midland Airways Low Cost Carrier, with a second group – quoted as an “EU based Airline Group” now joining the action.
British Midland Airways say:
“This potential new owner, which has operations in several countries across Europe, would acquire 100 per cent of the shares of Bmibaby. This would include the aircraft fleet, the existing route network and the continued employment of the existing staff.
This non exclusive term sheet is in addition to the term sheet already signed with a UK based company in January 2012. Bmi plans to sign a definitive sale purchase agreement with one of the parties in the next few weeks. The completion of the transaction would occur shortly after this, subject to receiving all the necessary approvals.
The Bmibaby brand name would continue to be used for an interim period and Bmibaby’s head office would remain in the East Midlands with the airline continuing to operate from its existing bases in the UK.”
Now BMI Baby is as mad as a box of frogs… or a Talking Weighted Companion Cube, operating out of East Midlands, Birmingham and Belfast as bases, operating Boeing 737 classic aircraft. They’re not bad (by any stretch of the imagination – for starters, there is pre-assigned seating and staff that want to be there), but the seating is tight. But it seems people are seeing value in the airline – which can only be good for everyone employed by them.
A term sheet (according to Wikipedia is
a bullet-point document outlining the material terms and conditions of a business agreement. After a term sheet has been “executed”, it guides legal counsel in the preparation of a proposed “final agreement”. It then guides, but is not necessarily binding, as the signatories negotiate, usually with legal counsel, the final terms of their agreement.
So it’s a simple start as the agreement is non exclusive – and could promote a fight. Hopefully it’ll be soon as the sale is due to be closed soon… and Lufthansa would really like to get a few pennies for BMI Baby, instead of paying IAG to dispose of it.
Whoever takes BMI Baby over will have a challenge, no matter what…
