Wednesday 4 April 2012

Victory for Willie Walsh in BMI takeover

European competition authorities have supported IAG’s takeover of BMI, although they have imposed a condition on IAG. This is quite a nice example to bring in to any consideration of bullet point 6 i.e. “the reasons why governments might support or intervene in takeovers and mergers”.

The IAG takeover of BMI has been given the green light so long as IAG relinquish 14 landing slots at Heathrow (but they will still gain 42 extra slots at Heathrow from the merger). Seven of the relinquished Heathrow slots must be sold by IAG to operators providing flights to Edinburgh and Aberdeen (directly addressing Richard Branson’s complaint of a worsening of service to Scotland as a result of the merger). 

In terms of employee impact (a key stakeholder) it looks like many BMI staff will be jobless.
Clearly Willie Walsh and Richard Branson aren’t the best of mates! You can read about it in more detail here:-

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