mrjworth
Posts: 128
Joined: Mon Mar 06, 2000 5:43 am

BMI Set To Become A No Frills Airline?

Mon Nov 12, 2001 4:50 am

Interesting just read that British Midland is considering being a low cost airline in a bid to the survive the downturn. Source: BBC
 
777236ER
Posts: 12213
Joined: Sat Aug 18, 2001 7:10 am

RE: BMI Set To Become A No Frills Airline?

Mon Nov 12, 2001 4:53 am

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...
Your bone's got a little machine
 
Ikarus
Posts: 3391
Joined: Mon Jan 08, 2001 10:18 pm

RE: BMI Set To Become A No Frills Airline?

Mon Nov 12, 2001 4:58 am

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
 
Contact Air
Posts: 1143
Joined: Sat Apr 14, 2001 4:13 am

RE: BMI Set To Become A No Frills Airline?

Mon Nov 12, 2001 4:59 am

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.

 
teahan
Posts: 4993
Joined: Sun Nov 21, 1999 11:18 pm

RE: BMI Set To Become A No Frills Airline?

Mon Nov 12, 2001 5:04 am

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
 
Ikarus
Posts: 3391
Joined: Mon Jan 08, 2001 10:18 pm

RE: BMI Set To Become A No Frills Airline?

Mon Nov 12, 2001 5:56 am

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
 
gkirk
Posts: 23349
Joined: Thu Jun 15, 2000 3:29 am

RE: BMI Set To Become A No Frills Airline?

Mon Nov 12, 2001 5:57 am

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!
 
gkirk
Posts: 23349
Joined: Thu Jun 15, 2000 3:29 am

RE: BMI Set To Become A No Frills Airline?

Mon Nov 12, 2001 5:57 am

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!
 
donder10
Posts: 6944
Joined: Sun Oct 21, 2001 5:29 am

RE: BMI Set To Become A No Frills Airline?

Mon Nov 12, 2001 6:18 am

Yet another example of the UK press cocking things up.
 
David_itl
Posts: 5993
Joined: Wed Jun 27, 2001 7:39 am

RE: BMI Set To Become A No Frills Airline?

Mon Nov 12, 2001 8:08 pm



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

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos