The future of BMI
baby is bleak. Running away from competition, they have spread themselves thinly around the United Kingdom, and everywhere they go gets a reaction from the competition. Unlike other Low cost carriers who dominate a City they fly to, (think EZY at LPL
) (even BE
). The biggest problem with this is that it allows the door to remain open for other carriers to enter a market and succeed.
But Baby doesn’t dominate anywhere, dancing around the corners of airports, with one and two aircraft based here and there. Cardiff, Gatwick and Teesside are good examples of a failed base launches. MME
has just three flights today, LGW
has two, CWL
has seven. Manchester has only eleven flights. Small bases are expensive to advertise per seat if you want to penetrate the market successfully. Thats why EZY dedicated at least three aircraft to a base from day one.... not three flights!
On top of FR
and EZY taking their toll on WW
traffic at EMA
’s only main hub, (with twenty-one daily departures) It is even coming under attack from WW
– by starting a base in Birmingham. Low fares from Birmingham will result in EMA
This winter BHX
will have eight destinations, Most of which are not served Daily. GVA
– Weekly, PMI
- twice weekly NOC
six weekly. Business routes (AMS
) will only be served twice daily – far below the minimum six frequencies daily offered by KL
. EasyJet and Ryanair succeed at operating high frequency domestic routes, even on regional routes such as BRS NCL
(Three daily). Again, expensive to advertise a hub with such low frequencies.
This winter and next summer will be even more difficult for Baby, with even more competition from FR
, EZY, BA
, Monarch and Jet2. All bases, with the exception of Cardiff will see more low cost competition fighting for more passengers. CWL
with only seven daily flights this summer season is proving itself to be impossible to make money in.
staff member recently stated that WW
only managed a Gross Profit break even this summer (Gross profit doesn’t include any fixed overheads involved in running a company, including non sector related wages). With fuel prices rising, competition increasing and passenger numbers diminishing this winter they wont even cover operating costs. Will they survive?
Answers on a postcard….
Greetings from Hong Kong.... a subsidiary of China Inc.