Whilst Diamond Club members  are probably sitting pretty and IAG has a bunch more slots, there are some big losers in the sale of British Midland International:

• Lufthansa. Oh dearie me. Lufthansa really bit off more than it can chew when it was forced to buy BMI from Sir Michael Bishop (and that’s silly of Lufthansa to agree to the push/pull sale agreement in the first place). Even though Lufthansa dumped cash into BMI, it failed to tackle the core problems that BMI had. So I’m sorry – no sympathy for Lufthansa from me. Whilst it tried bit of a turnaround, the strategy of flying to zones that had a civil war flaring up was… rather high risk.
• Virgin Group. Psst. Sir Richard Branson. Little hint. If you want to trump IAG and your mortal enemy British Airways… BE PREPARED TO SPEND MORE MONEY. With IAG winning the slots with money, I’m sorry Sir Richard Branson. I haven’t got time for your cry baby attitude here. You had the opportunity multiple times to come to a working relationship with BMI to create a second force and refused to take it every chance. So kindly CAN IT.
• BMI Baby – As BMI Baby was not sold, it’s now a IAG Liability. And IAG don’t want BMI Baby in any sense of the word. There are two options 1) Sell it at an epic loss or 2) Shut it down after the Summer Time table. I honestly feel for the staff involved, as they’ve done nothing wrong. About 470 people in different bases affected.
• BMI Regional – Same as above. We all know that British Airways has the moniker “London Airways” for a very good reason – it ignores the regional flying (preferring to give it to FlyBe and the rail network, subject to a few trunk routes into Heathrow or Gatwick). BMI Regional is sadly in the same boat as BMI Baby, and it doesn’t deserve to be as it’s one of the few bits of BMI that was making money.  About 330 people are affected.
  
• Any BMI staff north of the M25. London Airways strikes again. BMI has a maintenance base at East Midlands Airport, as well as its main headquarters at Castle Donnington/Donnington Hall. These are sadly all surplus to requirements, and are under threat of redundancy.
• The other 1200 BMI  members staff up for the cut. Sadly, we’re now at the “Synergy” phase of the merger where duplicate functions are removed and disposed – again mainly affecting the East Midlands area as opposed to London.
• And those with a BMI Pension may feel rather screwed too, with news of their Final Salary Pension scheme being shut, but underfunded after a one off payment by Lufthansa that will reduce the average BMI pension by 10%. Payments will also be capped depending on their age at retirement too. A lovely spiteful move there.
• One set of BMI Frequent Flyers that could well be disappointed are the LifeTime Golds (those who have retained BMI Gold over a non-stop period of 10 Years). No announcement has been made about the LifeTime Golds, which in itself isn’t a good sign
• And I almost forgot… Star Alliance who loose a hub presence (however small) in the United Kingdom, forcing Star to retreat to Europe….

Lots of losers all around it seems.

Later on – The Winners of this whole thing.. and BMI Gold, Silver or Blue Member? Your timetable for the next few weeks. 

Previous posts:

• IAG Takeover of BMI Complete – http://boardingarea.com/blogs/ghettoife/2012/04/20/iag-takeover-of-bmi-complete/
• BMI Sale complete – 1:1 Avios CONFIRMED, BA Lounge Access Granted, Status Match Too! http://boardingarea.com/blogs/ghettoife/2012/04/20/bmi-sale-complete-11-avios-confirmed-ba-lounge-access-granted/

Well, it seems Lufthansa has some cash, and International Airlines Group has an airline, with slots at London Heathrow.

IAG Has posted a press release stating as much at  http://www.iagshares.com/phoenix.zhtml?c=240949&p=irol-rnsArticle_Print&ID=1685377

The plan remains to integrate BMI Mainline out of London into British Airways.

However there is a question of BMI Baby and BMI Regional that haven’t been sold prior to the take over. That’s something I’ll be looking into a bit later on today.

The operation of these BMI Baby and BMI Regional continues for now as is – well to the end of Summer 2012 season. After that – who knows.

However, to take these liabilities on, Lufthansa has had to take a hit and have had to discount the sale.

For us mere members of BMI Diamond Club, the good news is there will be 1:1 Avios conversions and status matches from BMI Gold to BA Gold, BMI Silver to BA Silver. More of this at http://boardingarea.com/blogs/ghettoife/2012/04/20/bmi-sale-complete-11-avios-confirmed-ba-lounge-access-granted/

Later on, I’ll be looking at the loosers of the BMI sale.  Here’s a hint: There’s a fair few.

Well the big news is that the sale of BMI is complete. I’ll look into that in a shake, but here’s the news from Diamond Club:

I’m writing to advise you of some important changes to the Diamond Club programme following the sale of bmi to IAG, the owner of British Airways, on 20 April 2012.

As a result, there are some key changes to your Diamond Club membership, which I would like to outline below, which also includes an invitation from British Airways.

Announcement of bmi’s exit from Star Alliance
A new partnership with British Airways
Business as usual for Diamond Club
bmi’s exit from Star Alliance
I’d firstly like to advise that from 20 April bmi will no longer be a member of Star Alliance.

However, you will still be able to enjoy the following Star Alliance benefits associated with your membership tier level until 31 May 2012.

You will continue to earn membership status miles and earn and spend destinations miles on bmi and Star Alliance carriers (excluding Lufthansa Group airlines) until 31 May 2012
For all Star Alliance carriers you will also be able to take advantage of your bmi and Star Alliance status benefits, including lounge access, priority check-in and priority boarding until 31 May 2012
From 1 June 2012 any benefits associated with your tier membership and the ability to earn status miles and earn and spend destinations miles on Star Alliance airlines will end
Star Alliance award bookings made before 31 May 2012 will be honoured
For further information including changes to award bookings, retrospective claims and award flight bookings please click here

A new partnership with British Airways
We’re pleased to announce that Diamond Club members will benefit from a new partnership with British Airways from 20 April 2012.

All members will be able to earn destinations miles on BA, for flights taken from 20 April 2012, and we will shortly introduce the option to spend your destinations miles on BA award flights
From today, Diamond Club Gold and Silver members will be able to access the British Airways lounges at London Heathrow and London Gatwick, when flying with bmi or British Airways – please present your Diamond Club Gold or Silver card on arrival to gain access
As part of the transition of bmi into British Airways, from 1 May 2012 British Airways is inviting you, as a Diamond Club member, to also join the Executive Club at your equivalent tier status level.

Diamond Club Gold customers will be invited to become Gold members of the Executive Club and Silver members to become Silver, which will be in addition to your Diamond Club membership.

Further details will follow shortly.

You will also be able to transfer your destinations miles to Executive Club Avios points at a rate of 1:1. British Airways will also be offering Executive Club customers the ability to transfer from Executive Club Avios points into destinations miles at a rate of 1:1. For example 100 destinations miles could be transferred into 100 Avios points and vice versa.

We are creating an online tool that will allow Diamond Club and Executive Club customers to undertake transfers, which will be available from 3 July 2012. We will contact you nearer that date to explain how the tool will work and how to access it.

Business as usual for Diamond Club
Although today we are announcing a number of changes to the programme, we would like to assure you that it is business as usual for Diamond Club, including members who have a bmi Credit Card Account with MBNA.

We very much appreciate your loyalty to bmi and hope that you continue to enjoy the benefits of Diamond Club membership.

For more information on the changes please click here

We look forward to welcoming you onboard again soon.

Keeley Downing
Diamond Club

So what’s the big highlights?

• Star Alliance Gold/Silver Valid unit 31 May 2012 except on Lufthansa Family Airlines (we’re mud as far as they’re concerned)
• Star Alliance award bookings made before 31 May 2012 will be honoured so some more time to get those last redemptions in.
  
• STATUS FOR STATUS MATCH: BMI Gold will become BA Gold, BMI Silver to become BA Silver
• 1:1 Diamond Club to Avios Conversion from 3 July 2012. .

I’ve got to admit that in my wildest thoughts, Status Match was not going to happen (and lets not go into the Destination mile:Avios conversion). Apparently – it is.

I’ll have more analysis during the day….

In case you’ve been living under a rock, the sale of BMI will be executed over the next day or so.

Here’s the important bit for those who are redeeming miles:

If you want to redeem on Lufthansa Family Airlines, TODAY IS YOUR LAST DAY to do it – until 20:00BST!

The Lufthansa family refers to everyone in the Miles and More scheme. This includes:

• Lufthansa
• Lufthansa Cityline (and all contractors)
• Adria Airways
• Air Dolomiti
• Austrian Airlines Group,
• Brussels Airlines
• Croatia Airlines
• Germanwings
• LOT Polish Airlines,
• Swiss International Air Lines

And an important note for those making bookings:

• From 19th April, no changes to  Lufthansa  family redemptions
• From 19th April, cancellations of Lufthansa family redemptions possible for the usual fees, points returned

Again, if you need to fly these airline on BMI Diamond Club miles -  The deadline is today 18th April 20:00BST.

Ok, this is the data that BMI have failed to communicate to us, but has appeared on FlyerTalk.com (Emphasis mine).

• First stage (legal exit from the Star Alliance) will effective from 17th April 2012 (TODAY).
• Second stage (customer benefit end date) effective 31st May 2012. This will include, but will not be limited to, the following changes:

• End of Star Alliance mileage accrual on bmi operated flights.
• bmi DC members will no longer accrue mileage on Star Alliance operated flights.
• Priority reservation, waitlist and standby will cease for Star Alliance customers on bmi and vice versa.
• Priority Check-in, boarding, baggage delivery will cease for Star Alliance customers on bmi and vice versa.
• Additional baggage allowance will cease for Star Alliance customers on bmi and vice versa.
• Lounge access will cease for qualifying Star Alliance customers on bmi and vice versa.

The marketing and product development teams are currently outlining the new customer offering and will let you know the new bmi (non-aligned) product description in the forthcoming weeks. Please note that bmi will be a non-aligned carrier as it will not join One World.

Lets put this into a list of dates, then deal with the OneWorld thing… (thanks to aidanc for the original) – I’ve just added a bit of clarification and emphasis.

• From 19th April, no redemptions on Lufthansa family/Miles and More airlines – that’s Lufthansa, Air Dolomiti, Austrian Airlines Group, LOT Polish Airlines, Swiss International Air Lines ,Adria Airways, Croatia Airlines, Luxair, Brussels Airlines and Germanwings
  
• From 19th April, no changes to  Lufthansa  family redemptions
• From 19th April, cancellations of Lufthansa family redemptions possible for the usual fees, points returned

Now based on the data above and other information:

•  Until 30th May, Star Alliance Gold  benefits apply except on Lufthansa family airlines
•  Until 30th May, Star Alliance redemptions should possible except on Lufthansa family airlines

And regarding British Airways:

• Post 20th April, they BA/bmi are working on a new customer offering
• Post 20th April, this offering will include some form of BA (metal) earning/redemption, but has not been announced

But lets turn our heads back to BMI NOT joining OneWorld. That is a touch… worrying.

Now, if British Airways decides to absorb BMI completely which is the plan, hopefully there would be some Diamond Club to Avios match. There are questions to what a BMI Gold or Silver would be worth within and beyond BA land from 31st May. Hopefully we’ll know more on the 20th (Friday).

My advice remains the same:

REDEEM THOSE MILES. NOW.

Well it seems that the Virgin Group are distinctly unhappy at the International Airlines Group takeover of British Midland International, and is to appeal against the European Commission’s decision to allow the purchase to go through.

Virgin objects in lots of whiny language with Richard Branson said Virgin Group stating:

“This deal was agreed with lightning speed and we think the number of slots offered is derisory – representing less than a quarter of BMI’s former network”

In addition, Virgin Group would

“challenge every aspect of this process which if allowed to stand, will undoubtedly damage the British airline industry for years to come”

and that

“seemingly ignored all of the strong cases made by politicians, business groups and airlines, to enable one big company to become even more bloated”

Strong words from the bearded wonder indeed.

The takeover of BMI from Lufthansa to IAG is due to be complete on 20th April 2012.  IAG will gain 56 slots at Heathrow (to be allocated to the British Airways unit), whilst giving up 12 slots to other airlines as part of the takeover deal.

Perhaps unsurprisingly, Virgin will bid for all the 12 slots that BA has been forced to give up, the airline added – although Virgin currently lack short-haul aircraft to operate the smaller routes.

Nothing like the fun of slot-fighting at London Heathrow…

A Last Star Alliance Fling? To Chicago with United Airlines and Air Canada
(and a guest appearance from BMI)
LHR-IAD-ORD, ORD-YYZ-LHR

Index:

• The Introduction (this entry)

Welcome to what might be a last big fling with Star Alliance for a bit – unless I decide to make a push for Senator Status…  or some other madness overtakes me…. which for those who know me – is entirely possible.

Once again, it’s my classic spring Chicago run where I turn my eyes onto the airlines to see if they’re still delivering – or not – down the back of the plane.

And of course – this trip is economy class. But regular readers should had guessed this.

I’ll be following the style of my previous trip on ANA’s 787 to Japan, and making the trip report a lot richer. Well that is the plan. What happens when I put hands to keyboard is another matter.

As a reminder to some of my grammar conscious/grammar sensitive readers, please head to http://boardingarea.com/blogs/ghettoife/2012/03/18/blog-admin-a-message-to-the-grammar-checkers-out-there/ for an explanation of why my grammar may not be up to others high standards.

I’m also keeping to the style of the last report and publishing it bit by bit. It allows me to write and get stuff out to you, and gives me a chance to to finish it without wanting to pull my hair out.

A Rock and a Hard Place (The Introduction)

Frequent flyer memberships and elite memberships can be a blessing or a curse – something a lot of us can agree on.

For me, it’s a mixed blessing. The upside is I can control my costs on certain trips (and lets make no bones, with the amount of luggage I tote on  trips, it is not a nicety having an extended baggage allowance, it’s a requirement). The down side is to get that baggage allowance, I need to fly a lot down the back of the plane lot of back of the plane a I don’t have expense accounts to charge our flying habit – hence why I spend a lot of my life in Economy Class.

It also provides some of you with entertainment. Or is it car crash reading?  It’s the same difference to me…

Anyway, I got the call that I was wanted in Chicago again to do pretty pictures, and it’s impolite to say no when there is a trip to one of my favourite cities in the world.  But when booking the usual usual London-Chicago trip, the question turns from how do you make it as interesting as possible?

Sure, I could do an  LHR-ORD-LHR trip, but that is just boring. Besides, I find it is nice to break up a trip occasionally.

That and the direct flights were to be overpriced… again (pretty common with United).

Eventually, I settled the following:

• Outbound via Washington Dulles on the way out as the times were agreeable – 923 to IAD, 221 onto ORD
• Inbound via Toronto on a UA flight to YYZ and homeward on Air Canada’s Boeing 777-300ER

Now whilst I’m not on speaking terms with Canadian Immigration still (especially after last time I went through Toronto), but an option for Air Canada is always welcome in my book… and it’s not exactly if I’m going into the country to corrupt the nation (although I swear that’s what Canadian Immigration think…)

So I opened my wallet and cried at the £411.93 (it seems the march of the upward airfare continues… and this is pre-APD rise), and booked the ticket to The Windy City.

Idly I checked the booking, and found that United had changed the return flight from ORD to YYZ, and the YYZ to LHR leg was re-timed and re-equipped to an A330.

Wonderful. A phone call later, and that was sorted and I was able to play with the booking again.

Checking the options, I saw something – an F upgrade for one of the legs. For $69 (The ORD-YYZ leg). Compared to the cost of the IAD-ORD upgrade cost (add a 1 in front to get the upgrade price), this seemed palatable. I therefore shoved the extra change towards United. If the extra miles didn’t turn up, who cares? In this case it would keep the agents quiet about my luggage if they asked. And that’s not a bad thing.

Map by the Great Circle Mapper: www.gcmap.com

So the big question – Where to credit to? Well to my own stupidity I credited them to BMI Diamond Club. So much for a head start on whatever airline I want to go for Star Gold with next time. Oh well.

For accommodation, I would be heading to my usual haunt of the Hyatt Regency O’Hare later in the trip. But I also wanted to enjoy life in downtown Chicago for once – and whilst commuting back n forth on the CTA Blue line is fun, it does does damage to your back if you’re carrying the amount of cargo I carry.

I therefore plonked for the Intercontinental Chicago on North Michigan Avenue.

Now that’s an eye opener for some of you I’d wager. Let’s just say I got a reasonable rate that day that made the Hyatt look expensive (and I don’t pay full rate at the Hyatt!)

So hotels, planes… am I missing something? Oh yes. Getting back n forth to London Heathrow Airport. Back to National Express with me with a £49.40 return coach ticket. This is due to National Express only selling full price tickets on Airport trips and no FunFares.

Forty Nine Notes to sit on a coach for 2 and a half hours there and back. I ask you…

Anyway, on with the show!

Coming up: I prove I can be a dolt some days, a fond farewell to BMI in it’s current form and of course… lounges!

1200 posts to go seems to be the first efficiency that IAG wishes to make with the take over of BMI

Both Unite who represent the ground crews and cabin staff as well as BALPA who represent the pilots are trying to negate the losses.

Unite say:

“Unite will be fighting to maintain as many jobs as possible and ensure that where vacancies exist people can be placed into suitable roles within BA,

Whilst BALPA state it would allocate

“all the resources at its disposal”

to support pilots affected by the takeover.

The estimated numbers come as the takeover of BMI by IAG edges ever closer. The problem BMI has is that it is still loosing money hand over fist – and the costs need to be contained.

Sadly, that means we are heading to the “Synergy” phase of the takeover… which means all departments are under the spotlight to save money. The cuts represent a 1/3rd of the total workforce of over 3,600 people.

So a message from GhettoIFE.com towers to BMI:

Good luck to all the BMI members of staff out there in all departments

For whenever the airline had problems, it had an IT mess-up, an Airbus A330 had engine issues or the Indian Call Centre was acting more stupid than ever, the staff have been the one saviour of the airline every single time.

More news from BMI Diamond Club this evening:

We’d like to advise you of some forthcoming changes to the bmi Diamond Club programme.

From 19 April 2012, the ability for Diamond Club members to earn Status and Destinations miles and to redeem miles will cease on the Lufthansa Group airlines (Lufthansa, Swiss, Austrian Airlines, and Brussels Airlines).

Any redemption tickets issued prior to this date for travel will be honoured.

All Star Alliance status benefits will remain unaffected by this change.

We are working with British Airways to offer Diamond Club customers the ability to earn and redeem miles on British Airways and its oneworld partners following completion of the sale. We will do everything we can to communicate more detail as soon as possible

Seems the end is coming now….

Earlier today Miles and More put out a statement when things would end with BMI. It seems it that the statement pulled, and a new statement is now its place:

A new statement is now out :

Miles & More ends its cooperation with bmi

11.04.2012

With effect from 19 April 2012, Miles & More’s cooperation with bmi will end by mutual agreement. This is the result of the sale of bmi to IAG and the consequent withdrawal of bmi from the Lufthansa Group.

As of that date earning miles on bmi flights will unfortunately no longer be possible. Until then the current terms shall apply.

Miles & More flight awards issued prior to this date can be used as planned on bmi flights.

Status-related benefits on bmi flights can still be used until 31 May 2012.

If you have any additional questions, please contact your Miles & More Service Center.

http://www.miles-and-more.com/online/portal/mam/de/program/news/detail?nodeid=544022818&l=en&cid=18002

This ties in with a lot of things, with the end of Star Alliance membership set for the 18th April, and a day or two of transition to International Airlines Group ownership.

It’s intresting to note the 31st May date – which was quoted by Asiana too. It seems this could be the final transition date. promised by BMI for limited access to its Star Alliance membership.

As I’m not travelling now, I’ll be tightening my focus on the last days of BMI as a Lufthansa owned company. Heck if I get time, there might be a memorial post…

I’d better get a decent grammar checker that day