LONDON (Dow Jones)--British Midland Airways, or bmi, Wednesday said it expected to be able to meet its financial commitments and had adequate resources to remain in operation.
Bmi, acquired earlier this year by German carrier Deutsche Lufthansa AG (LHA.XE), made its comments in a statement issued in response to an article in The Times newspaper, which suggested bmi might not be able to continue as a going concern beyond next year due to an acute funding crisis.
"The statement in the accounts clearly states that the directors and auditors believe that the company can meet its financial obligations going forward," bmi said in the statement.
"Additionally, with the current level of commitment shown by Lufthansa and with advanced business initiatives in place, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence in the future," it added.
The U.K. carrier currently is executing a restructuring plan to stem losses.
I think every airline will struggle in the next 12 months. The times article may or may not be accurate, but it's this kind of media speculation which can be the kiss of death for an airline. I hope they get proved wrong.