bmi has an operators licence otherwise we wouldn't be flying! As for the 3 months working capital, I cannot say.
I feel bmi management may have been a bit slippery with the accounts. Posting large write down losses and clearing the decks in a fiscal sense for 2 reasons.
1 To use as a tool to force the workforce to accept a wage freeze.
2 To make the the figures next year under the control of Lufthansa seem like there has been a magnificent turn around.
This would give certain management a chance to hold their current posts ie NT.
Lufthansa may have also been playing the game too. Application to the EU was only applied for in April. Why the delay? In my mind, they knew the financial situation at bmi like any other airline would deteriorate in the intervening months so having a stronger negotiating position. They may also feel Bishop could inject some of the money made from the Euro exchange rate change.
bmi have weathered the storms of economic downturn in the past. Bishop has been good in that, but now it is time for a new start with Lufthansa and I wouldn't bet against SMB that this is what will happen.
D and F
