question for all you airline economists
to those on this thread who seem to think they have the answers, rather than criticise incessantly, answer the following:-
the old short haul model at Heathrow, although popular was losing money month on month and the situation was getting worse by the day. The low cost carriers with their low cost bases and who started with clean sheets of paper were having an enourmous effect not only on bmi but BA too. Something HAD to be done to cut costs - FACT.
The only way was to cut out the loss making aspects i.e. business products including hugely expensive airport lounges, catering contracts. Although regrettable, there was no option.
So, to those who bleat on about how bmi has lost direction and bring back business class etc, - what is the solution when operating out of such a high cost airport such as LHR?