I know bmi well and have worked for them in the past but I do not have any current association with them other than knowing people there. For at least the last 20 years it has been a difficult business to understand. For many years it made insignificant profits which was odd for a business that had a good reputation and was based at LHR. But the published losses have not been significant either. It has a stunningly valuable slot base and the sale or lease of these could keep the business at least alive for many years. Auctioned off those slots would be worth hundreds of millions of pounds. Virgin. Lufthansa and everyone else there would give their eye teeth to get some of them. So I do not really understand where all this talk of crisis comes from.
Its owners have done some clever deals over the years not the least of which was the development of British Regional and its sale to BA. This made large profits for Sir Michael and his associates and should provide the basis for adequate funding for bmi should they have and really serious problems at this time. Add the slots to that and there is a very healthy asset base.
I have never been able to work out why bmi joined Star Alliance and I think it is very interesting that it has been reported that both LH and SAS have written off their investment in bmi. Joining Star caused a lot of pain for them all.
The decision to go long haul has always baffled me. It is always expensive and a very easy way to lose cash quickly. It also absorbs endless management time when perhaps they might be better employed looking after the basics.
The fares offerings out of LHR are baffling. If there was ever an airport that could support undiscounted fares it was LHR but baby fares are almost constantly advertised by them for LHR flights now.
Their route decisions are also baffling. They went into PRG, WAW and AGP and then withdrew just as those routes started to boom. PRG and AGP have made the so-called low cost airlines.
I cannot work out the strategy of baby. It seems to be constant chopping and changing of everything.
The whole group INMO needs a strategy review guided by experts in brand management, airline operations and customer services. Incidentally I hear from within bmi that the lost baggage situation at LHR is still horrendous.
Finally if they want to be credible they should move the head office from sleepy hollow to somewhere that has a dynamic environment.
I am sure that it is not irrecoverable but really firm action seems to be needed. But I do not think it is a company facing imminent crisis.