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Bmi cuts Heathrow routes

Published: 25/11/2009 - Filed under: News »

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Lufthansa-owned Bmi is to suspend several key routes from London Heathrow, including Amsterdam, Brussels, Tel Aviv, Kiev and Aleppo, citing “unprecedented market conditions”.

The carrier’s flights to Amsterdam will end on March 27, 2010, leaving just BA and KLM on the route from Heathrow. BMI-operated flights from Heathrow to Brussels will end even earlier on January 9, 2010, although the airline will continue to offer a codeshare service to the city with Brussels Airlines (also owned by Lufthansa), which will take over the route. Routes from Heathrow to Tel Aviv (also served by BA as well as El Al) and Aleppo (not currently served by any other carrier) will also cease on January 9, while flights to Kiev will end on January 10 (leaving just BA on the route).

In addition Bmi’s service from Heathrow to Cairo will be swapped from an Airbus A330 to an A321 from April 2010, as the carrier ends its lease agreement on two A330 aircraft.

Bmi says that going forward the airline will “focus on routes serving oil, energy and emerging markets with a particular focus on Business Class customers and those visiting friends and relatives”.It added that owners Lufthansa is "committed to helping Bmi restructure the airline to return it to profitability".

For more information visit flybmi.com.

Report by Mark Caswell

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COMMENTS » 

viking01 - 25/11/2009 13:00

If bmi are returning two out of their three A330 aircraft, then that's the end of them as any kind of long-haul player (to be fair, they were never much of one anyway).

Which route will the remaining A330 stay on - Saudi?

Tel Aviv is a suprise but there's just too much competition on there, especially once you go head to head with Easyjet....

Freedom1 - 25/11/2009 13:30

such a shame for this once amazing airline.

Nigel Turner must be so proud of himself. . . .

BusinessTraveller - 25/11/2009 14:48

As well as the announcement on specific route cuts above, Bmi has released the following statement regarding the restructuring of Bmi mainline and Bmi Regional operations:

'bmi has today announced the restructuring of its mainline and regional operations. The move takes place against a background where the airline industry is facing the challenges of a downturn in demand and the worst recession in the UK since records began. In addition to cost saving initiatives the programme also includes a wide range of revenue enhancement initiatives.

The restructuring plan will see bmi focus on the following key areas:

• Suspending loss making routes

• Adjusting capacity to optimise efficiency and profitability

• Strengthening organisational productivity and efficiency in all areas

• Making use of the synergies of Lufthansa and other partner airlines in all areas

• Maximising revenue generating opportunities with codeshare and Star Alliance partners

The airline’s goal is to focus on maintaining within bmi mainline and bmi regional a core network of services in the UK and Ireland, Europe, the CIS, The Middle East and the Kingdom of Saudi Arabia. Through a combination of improved aircraft productivity and efficiency, and from early 2010 the suspension of non-core and unprofitable services, bmi will reduce the number of aircraft in its mainline operation by nine from the current 39. This reduction will include two of five Embraer aircraft operating on mainline routes that will be returned to bmi regional.

Leases will not be extended on aircraft when they expire in the first half of 2010, including two of the three long haul A330 aircraft. bmi will therefore continue to serve mid haul markets with two long-range aircraft and its fleet of A321s.

bmi regional, which through its niche market position and a long term charter agreement with Airbus, is maintaining a viable operation but is feeling the impact of a prolonged downturn in business-type travel. The return of two Embraer aircraft from the mainline operation at Heathrow and one additional spare aircraft will result in these three units being surplus to requirements. The company is in discussion with potential customers with a view to mitigating this situation.

A reduction in the number of aircraft deployed in bmi mainline and bmi regional operations will result in job reductions coming from all areas of the business, operational and corporate functions. The number of full-time equivalent jobs at risk of redundancy is expected to be approximately 600. However further job cuts cannot be ruled out as corporate overheads will also be cut to reflect the reduced flying programme. Management has today commenced consultations with unions and staff representatives with a view to minimising the number of compulsory job losses wherever possible.

The Lufthansa Group took over bmi in July 2009 and shortly after undertook a due diligence exercise which highlighted the need for a restructuring of the business. Lufthansa has given bmi its full support for the actions it is undertaking in this restructuring programme.

Once stabilised, the business can then be grown again in the years ahead when the economic environment improves and market demand justifies it.

FlightDoctor - 25/11/2009 16:59

As a regular user of the Brussels run on a typically weekly basis for the last 2 years it is hugely disappointing that they are handing the route over to Brussels airlines with their aged Avro aircraft and inferior service. I would imagine that the status miles earned on a typical trip with Brussels airlines will be significantly less than BMI so retaining my Diamond Club status will also be much harder. Time to switch back to BA?

MarcusUK - 25/11/2009 22:33

As many have defined on here over the last yr, the demise of BMI, alongside BA.

BMI has been run as a semi low cost operation for some time now, & it wont work for a once full service airline. B A is going in the same direction. The industry does not have a successful Airline, that tries to stand inbwteen full service & semi low cost. Custom either comes from Low cost in entirety, OR full service Airlines. Travellers dont like the mix, which is neither. Either you pay small fares with all the add ons, or a normal inclusive price. However, services like KLM to Amsterdam, sell for as little as £87 return from LHR, so they beat the low cost airfares also these days.

GREAT news for KLM who will strengthen this highly popular route. Every KLM LHR-AMS flight i have ben on in th last 12 months has been full, including Suday eve last. Great 737-8/900's, great service, reliable, every hour through the day roughly, as well as into LCY now with CityJet, & VLM taken over. AF /KLM go to greater strength, the main player on this route. Unlike Paris or BRU, you have to fly across to Netherlands, no tran that's speedy or cost effective.

I see the total demise of BMI. They will no longer be an International Airline, but this has been on the cards n slowly processing for over a year.

The Diamond Club will also close i hear, Star Alliance membership be worth little anymore. Then again it has been the Most complained about atrocious FF service of any Airline, as featured many times on BT!

Predictable, shame from their glorious days, & sad for the staff teams... Walsh is leading B A down the same pathway...

Stronger LH group, AF/ are all waiting to collect their business. Other Airlines with lots of assets will swallow up those in Europe. It really is a time of globalisation, & complete re-structuring of the Airline industry now. The slightest mistakes will bring business transfers to others, just like BA putting out their customers. A stupid & chjld like form of perception of management, Instant gratification /cash rules, out of sinc with what people will accept.

BMI have not listened, neither have BA, a common fate they share taking down the same road...!

ScottWilson - 26/11/2009 09:53

Reducing Cairo to A321s will decimate business traffic on this route, no premium economy and antiquated business class, but it is clear BMI is going to be little more than a holder of slots for Lufthansa in the medium term.

It has some useful for BMED routes, Dublin and the UK domestic routes are useful feeders to Virgin and others at Heathrow, but beyond that it is a gap filler rather than any serious network carrier. If Virgin Atlantic was an investor grade airline it might use it to work with European Star Alliance carriers to provide a viable business alternative to BA on core routes like Madrid and Amsterdam. However it is just a cash positive status symbol.

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