Concorde001
Topic Author
Posts: 1186
Joined: Fri Jan 21, 2005 12:53 am

BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Tue Apr 04, 2006 7:44 pm

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.

Source: http://www.thisismoney.co.uk/news/ar...?in_article_id=408049&in_page_id=2

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.

[Edited 2006-04-04 12:57:58]
 
mhodgson
Posts: 4673
Joined: Mon Dec 30, 2002 8:47 pm

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Tue Apr 04, 2006 7:48 pm

While undeniably good for bmi, I am curious to know which divisions are making money - mainline, regional, baby or long haul?
No trees were harmed by this message. However, several million electrons were terribly inconvenienced
 
A340600
Posts: 3893
Joined: Sun Aug 24, 2003 10:24 pm

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Tue Apr 04, 2006 8:04 pm

How bizarre, as said it will be interesting to see where the goldmine lays,

Sam
Despite the name I am a Boeing man through and through!
 
Concorde001
Topic Author
Posts: 1186
Joined: Fri Jan 21, 2005 12:53 am

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Tue Apr 04, 2006 8:06 pm

Does anyone know if QR gave bmi some money for the slots being used on LHR-DOH?

[Edited 2006-04-04 13:08:41]
 
BDKLEZ
Posts: 1687
Joined: Sun Jun 26, 2005 11:57 am

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Tue Apr 04, 2006 8:07 pm

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!
 
BestWestern
Posts: 7531
Joined: Fri Sep 08, 2000 8:46 pm

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Tue Apr 04, 2006 8:10 pm

Congratulations to Bmi.
Greetings from Hong Kong.... a subsidiary of China Inc.
 
cornish
Posts: 7651
Joined: Fri Feb 18, 2005 8:05 pm

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Tue Apr 04, 2006 8:11 pm

Well good news for Bmi if achieved through their operational changes.

Of course there is also the possibility that the profts have been helped by one or two exceptional one-time items as well.
Just when I thought I could see light at the end of the tunnel, it was some B*****d with a torch bringing me more work
 
BDKLEZ
Posts: 1687
Joined: Sun Jun 26, 2005 11:57 am

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Tue Apr 04, 2006 8:16 pm

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!
 
BestWestern
Posts: 7531
Joined: Fri Sep 08, 2000 8:46 pm

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Tue Apr 04, 2006 8:21 pm

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.

I think its down to this also. However, Im just a cynic. Its certainly not down to yields or loads ex heathrow.

Are BD fuel hedged?
Greetings from Hong Kong.... a subsidiary of China Inc.
 
BDKLEZ
Posts: 1687
Joined: Sun Jun 26, 2005 11:57 am

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Tue Apr 04, 2006 8:25 pm

Quoting BestWestern (Reply 8):
Are BD fuel hedged?

I believe so, but cannot confirm. It certainly was the case in the past.
Trespassers will be shot; survivors will be shot again!
 
Concorde001
Topic Author
Posts: 1186
Joined: Fri Jan 21, 2005 12:53 am

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Wed Apr 05, 2006 2:54 am

BMI have published their results on their website:

STRATEGIC FOCUS DELIVERS PROFIT GROWTH

highlights:

---------------------------------------------------------------------
Turnover
2005: £869.0m
2004: £830.1m
Change: 4.70%
---------------------------------------------------------------------
Operating profit*
2005: £5.5m
2004:(£3.2m)
Change: +£8.7m
---------------------------------------------------------------------
Pre-tax Profit
2005: £10.0m
2004: £2.6m
Change: 284.60%
---------------------------------------------------------------------
Cash
2005: £143.4m
2004: £138.6m
Change: 3.50%
---------------------------------------------------------------------
Debt
2005: (£85.8m)
2004: (£122.3m)
Change: -29.90%
---------------------------------------------------------------------
Passengers boarded
2005: 10.5m
2004: 10.5m
Change: 0
---------------------------------------------------------------------
Aircraft operated as at 31 December
2005: 60
2004: 57
Change: 3
---------------------------------------------------------------------
(RPKs)
2005: 9,325m
2004: 8,775m
Change: 6.30%
---------------------------------------------------------------------
(ASKs)
2005: 13,129m
2004: 12,209m
Change: 7.50%
---------------------------------------------------------------------
Overall Load Factor
2005: 71.00%
2004: 71.90%
Change: - 0.9 points
---------------------------------------------------------------------
Average staff numbers
2005: 4,555
2004: 4,557
Change: static
---------------------------------------------------------------------

* before exceptional items

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

 rotfl 
 
UAL777UK
Posts: 2212
Joined: Sun Nov 20, 2005 1:16 am

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Wed Apr 05, 2006 3:28 am

Well, good on them, i choose them over BA anyday ona competing route in Europe.
 
Humberside
Posts: 3225
Joined: Sun Jan 01, 2006 12:44 am

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Wed Apr 05, 2006 4:16 am

Well done to bmi. Some good news for them after recent troubles and criticsm
Visit the Air Humberside Website and Forum
 
StarGoldLHR
Posts: 1346
Joined: Mon Feb 16, 2004 1:29 am

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Wed Apr 05, 2006 6:07 am

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
 
User avatar
OzarkD9S
Posts: 4879
Joined: Tue Oct 23, 2001 2:31 am

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Wed Apr 05, 2006 6:22 am

Quoting Concorde001 (Thread starter):


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?
Next up...STL-DEN-STL for the Airliners International collectibles gathering in June. Don't miss it!
 
BDKLEZ
Posts: 1687
Joined: Sun Jun 26, 2005 11:57 am

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Wed Apr 05, 2006 6:28 am

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!
 
User avatar
OzarkD9S
Posts: 4879
Joined: Tue Oct 23, 2001 2:31 am

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Wed Apr 05, 2006 6:31 am

Quoting BDKLEZ (Reply 15):


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.
Next up...STL-DEN-STL for the Airliners International collectibles gathering in June. Don't miss it!
 
cainanuk
Posts: 456
Joined: Wed Apr 24, 2002 4:05 pm

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Sun Apr 09, 2006 9:42 am

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.
Cainan Cornelius
 
BestWestern
Posts: 7531
Joined: Fri Sep 08, 2000 8:46 pm

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Sun Apr 09, 2006 6:22 pm

BMI profitability is down to slot sales it seems.
Greetings from Hong Kong.... a subsidiary of China Inc.
 
MYT332
Posts: 7286
Joined: Mon Sep 08, 2003 7:31 pm

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Sun Apr 09, 2006 6:35 pm

Quoting BestWestern (Reply 18):
BMI profitability is down to slot sales it seems.

Where are these slot machines placed? In the galleys or are they at the gate's?
One Life, Live it.
 
BestWestern
Posts: 7531
Joined: Fri Sep 08, 2000 8:46 pm

RE: BMI Profits UP Despite Pax Drop (I'm Not Joking!)

Sun Apr 09, 2006 9:25 pm

Quoting Myt332 (Reply 19):
Where are these slot machines placed? In the galleys or are they at the gate's?

At the front of the aircraft where the coat area used to be.  Smile
Greetings from Hong Kong.... a subsidiary of China Inc.

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