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BMI Set To Become A No Frills Airline?  
User currently offlineMrjworth From United Kingdom, joined Mar 2000, 136 posts, RR: 0
Posted (13 years 1 month 1 week 4 days 17 hours ago) and read 1938 times:

Interesting just read that British Midland is considering being a low cost airline in a bid to the survive the downturn. Source: BBC

9 replies: All unread, jump to last
 
User currently offline777236ER From , joined Dec 1969, posts, RR:
Reply 1, posted (13 years 1 month 1 week 4 days 17 hours ago) and read 1904 times:

Yeah, i heard that. Could be interesting, cos they have the infrastructure and routes that easyJet, GO-fly and Buzz can only dream of.

Very difficult to achieve though. 1. Their customers are used to with-frills ( Smile) airlines perks 2. they are set up as a normal airline, not a low-coster 3. lufthansa might have something to say about this...


User currently offlineIkarus From United Kingdom, joined Jan 2001, 3524 posts, RR: 2
Reply 2, posted (13 years 1 month 1 week 4 days 17 hours ago) and read 1893 times:

I don't really see it happening. Would be a giant restructure (especially if they want to standardize their fleet, which currently includes Airbus 321/321, Boeing 737-300/500, ERJ, Fokker 70/100 and A330). The idea of a low-cost airline is to operate at low cost, and thereby offer low prices. BMI is not exactly fitting the standard pattern for a low-cost airline.

I wonder what their Star Alliance partners would say about this. And I really wonder how they would like to enter a market that is already being served by 4 airlines in England...

Regards

Ikarus


User currently offlineContact Air From Germany, joined Apr 2001, 1154 posts, RR: 13
Reply 3, posted (13 years 1 month 1 week 4 days 17 hours ago) and read 1886 times:

I don't think that this is very likely to happen:
1. BMI is a member of Star Alliance. I think they would have to leave the alliance if they decided to become a low cost airline because the other Star Alliance airlines are not low-cost and code-share flights for example with Lufthansa wouldn't be possible with no in-flight service.
2. What would happen to their long-haul flights? They would be the first low-cost airline on long distances.
3. All British low-cost airlines start from STN or LTN. BMI is at LHR, the most expensive of all London airports. I think they would have to move to an other airport if they wanted to be competitive
4. There is already a large number of low-cost carriers in the UK: Easyjet, Go, Buzz, Ryanair (actually Irish but present at STN). It would be very difficult to find new routes and get pasengers.



User currently offlineTeahan From Germany, joined Nov 1999, 5310 posts, RR: 61
Reply 4, posted (13 years 1 month 1 week 4 days 17 hours ago) and read 1876 times:

Hello,

I really wonder if the press did not translate cost reductions into low cost? Nevertheless
if this story is true, it would be pretty interesting.

777236ER, why do they have all that? Simply because they are high-cost. Me thinks they would loose it becomming high-cost.

Interesting times ahead.

Jeremiah



Goodbye SR-LX MD-11 / 6th of March 1991 to the 31st of October 2004
User currently offlineIkarus From United Kingdom, joined Jan 2001, 3524 posts, RR: 2
Reply 5, posted (13 years 1 month 1 week 4 days 16 hours ago) and read 1840 times:

According to the article Singapore_air posted in another thread, they are just restructuring to cut costs, but not heading for low-frills. So the entire fuss is a press bubble..

Nevertheless, I cannot help thinking that actually, a low-cost airline based in LHR is not that bad an idea. First, you'd save the GBP 20 for train (or GBP 12 for bus) to get to Stansted / Luton. This would almost neutralize the higher airport tax. Then, you also save time (if you live in central London), and so the extra 5 or 10 pounds won't matter that much. The only problem I see is the need for low turnaround times and the difficulties associated with a long waiting pattern that burns more fuel than needed and costs valuable time. Certainly, it would be hard to maximize aircraft utilization out of Heathrow. But all in all, it's not impossible to do.... the only obstacle is the shortage of slots, of which BMI owns quite a few. So they are not in that bad a shape to try it - should they ever feel the need.

Regards

Ikarus


User currently offlineGKirk From UK - Scotland, joined Jun 2000, 24964 posts, RR: 56
Reply 6, posted (13 years 1 month 1 week 4 days 16 hours ago) and read 1838 times:

Its a low-cost carrier, not a no-frills carrier. It just means that BMI will be cutting back on some high-cost products.


When you hear the noise of the Tartan Army Boys, we'll be coming down the road!
User currently offlineGKirk From UK - Scotland, joined Jun 2000, 24964 posts, RR: 56
Reply 7, posted (13 years 1 month 1 week 4 days 16 hours ago) and read 1839 times:

Its a low-cost carrier, not a no-frills carrier. It just means that BMI will be cutting back on some high-cost products.


When you hear the noise of the Tartan Army Boys, we'll be coming down the road!
User currently offlineDonder10 From Canada, joined Oct 2001, 6660 posts, RR: 21
Reply 8, posted (13 years 1 month 1 week 4 days 16 hours ago) and read 1823 times:

Yet another example of the UK press cocking things up.

User currently offlineDavid_itl From United Kingdom, joined Jun 2001, 7439 posts, RR: 13
Reply 9, posted (13 years 1 month 1 week 4 days 2 hours ago) and read 1762 times:
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From the bmi website:


bmi CEO says UK airlines will need to reinvent themselves


bmi CEO Austin Reid has told delegates at the Institute of Economic Affairs Ninth Annual Conference in London that airlines will need to reinvent themselves by examining closely the financial models on which they operate.

Austin Reid said:

“For the past 2 months in particular the whole of the world’s airline industry has been looking carefully at its future and how it can operate successfully.

“Success will come through stronger competition facilitated by reduced levels of regulation. By reducing costs airline operators will create environments where they can prosper. In particular close examination is needed in costs relating to labour, aeroplane manufacturers and airports. Success will also be brought about by improved sales distribution channels, productivity and network alliances.

“bmi remains and will continue to remain a full service airline and we have no intention to become a budget carrier. We pride ourselves on the quality of our service.

“However, it is vital that if we are to survive in the current climate we have to continually examine the cost of the operation as a whole. We will be applying low cost principles to our business, both long and short haul, as we see this as the way forward for the UK, and indeed, global airline industry.”


David/MAN


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