BMI joins LH's Atlantic Joint Venture, LX and OS next

[RoMax]

http://www.thetransnational.travel/news ... .Apr-11.14

"Lufthansa subsidiary British Midland International has joined Atlantic Plus-Plus, the German flag carrier's joint venture, which also includes United Airlines, Continental Airlines and Air Canada. Although no official announcement has been made, BMI became part of A++ on April 1. Fellow Lufthansa subsidiaries Swiss and Austrian Airlines will join on July 1.

Marianne Sammann, U.K. general manager for Lufthansa, Austrian and Brussels Airlines, told BTN that A++ also is seeking antitrust immunity to bring Brussels Airlines into the group. The process of integrating the Belgian carrier has taken longer because Lufthansa has not yet acquired all its shares. Lufthansa in 2009 bought 45 percent of Brussels Airlines and has the option this year to buy the rest."

"Meanwhile, the Lufthansa Group almost has completed integrating its subsidiary airlines' European sales activities, Sammann said. As an example, in the United Kingdom, Sammann in April 2010 assumed responsibility for Austrian and this month added Brussels Airlines to her remit. Swiss co-locates in the same U.K. office, albeit with its own general manager, while BMI maintains its own sales team in its home market.

Sammann said Lufthansa has made similar but not identical arrangements throughout Europe. "We have reached maturity in the process," she said. "We can deliver one contract for the corporate client, with combinable rates. We have also aligned our neighborhood traffic," meaning that Lufthansa offers the same fare on routes from the United Kingdom to Switzerland, Austria, Belgium and Germany regardless of which of the group's airlines operates the flight."

Strange to see how SN is integrated so much in the LH group already while they are 'just' owned for 45% by LH and it seems they will not take over SN complettely this year.

[tolipanebas]

As I've said before, it is my opinion LH most probably can not take over SN at present without risk of seeing it lose some of the African traffic rights...

From all indications however, it is clear there must be no doubt about the fact SN is to be fully integrated into LH as soon as possible.

Finally, as said already a few times, SN is to start operating flights to the US on its own metal, but only AFTER it is included in the atlantic joint venture...

[tolipanebas]

"We can deliver one contract for the corporate client, with combinable rates. We have also aligned our neighborhood traffic," meaning that Lufthansa offers the same fare on routes from the United Kingdom to Switzerland, Austria, Belgium and Germany regardless of which of the group's airlines operates the flight."

Interesting quote, in relation to another discussion on this forum: BTO vs LH.

[sn26567]

Swissair started the same kind of integration with Sabena, also with a minority share of 49%. We all know how it ended...

• Sales offices merged with SR personnel taking precedence over SN one
• All SN tickets printed on SR stock, giving SR a commission on every SN ticket sold
• SN catering supplied by the SR subsidiary and often many more expensive business class meals than passengers
• etc.

... and at the end the bankruptcy!

[fretn]

Lessons have been learnt... SN took Swissair with her indirectly (and vice versa), that's the thing that I don't see happening with LH, imho one of the best managed companies in the whole world. I have full confidence in luftie.

[BrightCedars]

I still think oneworld would have been a better option for SN. Alas, what is done is done.

[euroflyer]

I still think oneworld would have been a better option for SN. Alas, what is done is done.

Honestly I do not see how BA could have done so much for SN and integrate them succesfully so fast as LH is doing it right now. BA still has to sort out quite a lot internally. LH is progressing with SN quite in a similar way than it did with LX (that was taken over step by step because of traffic rights as well) and that example so far has been very succesful. Oneworld or BA could not have offered anything near for SN in my opinion ...

[tolipanebas]

Indeed, I don't think any other airline would be able to do as much and go as far as LH is doing right now.
BA for sure would not have absorbed SN into its own structures the way LH is doing, but rather would have kept it as a stand alone airline, simply owned by them.

Now, you can regret the fact SN is being fully integrated as it makes it impossible to be cut loose again later (see SN and SR), but then one has to think of it this way: are you really better off as a tiny little stand alone subsidiary of some foreign airline that can be sold off again whenever they change their strategy, rather than as an integral core part of one of the most profitable airlines in the world?

I'd say that for the sake of employment, as well as future growth perspectives, it is far more reassuring to be fully integrated into one of the most profitable airlines in the world in a way that leaves no shred of doubt about the long term prospects of SN.