Concorde001 From United Kingdom, joined Jan 2005, 1230 posts, RR: 3 Posted (7 years 1 month 3 weeks 2 days 9 hours ago) and read 2162 times:
According to an online business paper, BMI will report pre-tax profits of £10 million this financial year against £2.6 million last year.
Here is how they did it:
Quote: The airline, Heathrow's second-biggest carrier, said today the disappearance of low-yielding passengers meant it could concentrate on building an operation around higher fare-paying business class travellers. Concorde001: That is why they removed business class!
The number of passengers flying bmi and its low-cost sister airline bmibaby stalled at 10.5m last year but increases in yield - the amount it charges per passenger - allowed turnover to grow almost 5% to £869m.
That, plus an 8% cut in costs before rising fuel charges, helped the group to pre-tax profits of £10m against £2.6m in 2004.
However, the future of bmi remains uncertain as its joint-venture partners and major shareholders, Lufthansa and SAS, are demanding a break-up of the current alliance.
Well I don't know about you, but I'm surprised! However my question is, as bmi report profts for the whole group (bmi baby), how much of this is attributable to bmi baby's low cost operation and bmi's longhaul ops? I may be wrong, but BMI's profits gives the airline an operating margin of 1.2% - that cannot be good. Could it be the case that bmi is only making money from its longhaul ops from LHR, MAN and its low cost airline bmibaby?
Thought credit where credit is due, so well done bmi for not reporting a loss.
Incidentally, bmi have not published anything on their website, so maybe we will find out more when they do.
BDKLEZ From Ireland, joined Jun 2005, 1735 posts, RR: 16 Reply 4, posted (7 years 1 month 3 weeks 2 days 8 hours ago) and read 2101 times:
Also, not being a PLC means that they can publish whatever figures they want. I'm not saying that they're not telling the truth, but there could be a temptation to "cloud" the figures by not specifying what areas of the group are/are not making money.
I suspect WW is the major earner, and perhaps the engineering division through it's third party work.
Trespassers will be shot; survivors will be shot again!
BDKLEZ From Ireland, joined Jun 2005, 1735 posts, RR: 16 Reply 7, posted (7 years 1 month 3 weeks 2 days 8 hours ago) and read 2060 times:
Quoting Cornish (Reply 6): Of course there is also the possibility that the profts have been helped by one or two exceptional one-time items as well.
Indeed, this was also the case for figures published for 2001-2002 which included the sale of British Midland Handling Services and the subsequent merger of Go-Ahead into what has now become Aviance. The BD group made a lot of cash out of that deal (13M IIRC) and was one of only a few airlines to post a profit after Sept. 11th as a result.
Trespassers will be shot; survivors will be shot again!
Commenting on the results, bmi chairman Sir Michael Bishop said: “These figures demonstrate good progress. We beat expectations last year and bmi’s strategic focus created further substantial improvements in 2005. Our concentration on higher yields, better resource allocation and cost control has delivered a good foundation for future growth.”
As you can see, BD only made £5.5 million from actually flying passengers and cargo. The remaining £4.5 million came from somewhere else.
Sir Michael Bishop's review is online if you want to read it: Sir Michael Bishop's Review
I found this part of the statement quite amusing:
Quote: We have a very clear strategy. In our mainline business we are focusing on quality business-purpose traffic
StarGoldLHR From Heard and McDonald Islands, joined Feb 2004, 1529 posts, RR: 1 Reply 13, posted (7 years 1 month 3 weeks 1 day 22 hours ago) and read 1577 times:
Quoting BestWestern (Reply 8): f course there is also the possibility that the profts have been helped by one or two exceptional one-time items as well.
Sale of a few A321's perhaps.
So far in 2008 45 flights and Gold already. JFK, IAD, LGA, SIN, HKG, NRT, AKL, PPT, LAX still to book ! Home Airport LCY
OzarkD9S From United States of America, joined Oct 2001, 4682 posts, RR: 23 Reply 14, posted (7 years 1 month 3 weeks 1 day 22 hours ago) and read 1557 times:
However, the future of bmi remains uncertain as its joint-venture partners and major shareholders, Lufthansa and SAS, are demanding a break-up of the current alliance.
This is a rather cryptic statement. Granted I don't keep up too much with BMI, are SK and LH wanting them out of STAR or does this imply something else?
BDKLEZ From Ireland, joined Jun 2005, 1735 posts, RR: 16 Reply 15, posted (7 years 1 month 3 weeks 1 day 22 hours ago) and read 1544 times:
Quoting OzarkD9S (Reply 14): are SK and LH wanting them out of STAR or does this imply something else?
It refers to an agreement signed between BD, SK & LH a number of years ago whereby their "European Co-operation" was consolidated into a deal whereby joint liabilities are distributed equally between the three airlines. Individual profits are to the benefit of all three but individual losses are also absorbed by all three.
Given BD's performance of recent years, I can understand their (SK/LH) train of thought. However, as an ex employee of BD, and as much as their recent form frustrates me, I'm glad that they've had some good news for a change.
Trespassers will be shot; survivors will be shot again!
OzarkD9S From United States of America, joined Oct 2001, 4682 posts, RR: 23 Reply 16, posted (7 years 1 month 3 weeks 1 day 22 hours ago) and read 1537 times:
It refers to an agreement signed between BD, SK & LH a number of years ago whereby their "European Co-operation" was consolidated into a deal whereby joint liabilities are distributed equally between the three airlines. Individual profits are to the benefit of all three but individual losses are also absorbed by all three.
Thanks for the info BDKLEZ. I wasn't aware of that particular arrangement.
Cainanuk From United Kingdom, joined Apr 2002, 548 posts, RR: 0 Reply 17, posted (7 years 1 month 2 weeks 4 days 19 hours ago) and read 1319 times:
I can assure you that NO other Star Partners want bmi out of Star as bmi own 12% of Heathrow slots. And big or small airline, THAT in and amongst itself is gold. By comparison, VS (whom everyone else thinks is a bigger carrier) own about 1%. BD and their Star Alliance Partners into LHR (AC, UA, LH, SK, and TG especially) get very good value for money on that arrangement.
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From United Kingdom, joined Jan 2005, 1230 posts, 
From Ireland, joined Jun 2005, 1735 posts, 
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From United States of America, joined Oct 2001, 4682 posts, 
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