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Old 17th Mar 2010, 23:27
  #1853 (permalink)  
uklad007
 
Join Date: May 2006
Location: UK
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Am a little confused and at the risk of opening a can of worms can someone explain the onboard service and apparent business plan for BMI - there has been so much chopping and changing I just want someone to tell me if am close or wide of the mark:

There is a press release today on the website re the new Berlin service but also relaunching the onboard services to include a two class cabin, returning on continental europe flights is the traditional business class in a 2-2 config with free hot meal and drink on board and also in economy its free drinks and free food also. - to me this is BMI going full circle and in fact going one better than BA by providing food in econ (it doesnt state light snack like BA so this is why am stating its one better)

So is the situation now this

UK&I - no free food or drink, single cabin but you can have flexible and non flexible tickets

Continental Europe - Traditional 2 class service (going back to how BMI was, and how BA/Lufthy currently are)

Med Haul - Traditional 2 class - except Cairo on the A330 is 3 class with premium economy.


Going forward BMI focus is

1)Uk&I Feeder to LHR although fewer frequencies and less destinations than previously
2)Feeder and route operator into Germany operating as BMI - BMI routes (but obviously codeshared) - allows Lufthy to free up its own aircraft on some UK-Germany routes it previously operated and allows new routes to Germany to be commenced on BMI.
3)Lufthy wet lessor into Germany - i.e on some routes its just plane/crew thats leased and its essentially a Lufthy route - operated by BMI plane
4)Lufthy wet lessor into Italy (on behalf of Lufthansa Italia), into Brussels (BMI Regional from a couple of regional UK airports)
5)BMI / Austrian route share to VIE
6) BMI Mid haul to Africa, Russia (Route share with Transaero), Middle East as before.

With points 3 and 4 I assume this is being done because A) it guarantees BMI profit on this operation as they take no risk on filling the seats which may just shift cost onto Lufthy's P&L rather than BMI's but Lufthy can cover it and BMI cant as it looses money. B) The routes are better to be offered as Lufthy "owned" routes in terms of marketing, booking but when you get to the gate its a BMI aircraft but by then the job is done.

In some respects the above is good because although its complicated its weaving BMI into the operations of Lufthy in a way that would help turn BMI to profit, make the airline more valuable (which will look good on the accounts of Lufthy) but at the same time would make BMI an asset to hold onto as a key feeder into its home territory and that of its subsidiaries rather than to sell as was rumoured some months back.

So - am I close or wide of the mark?

And finally......
For the German routes from UK which are:
BMI "Owned"Routes (Codeshare Lufthy)
Lufthy "Owned" Routes (Operated by BMI aircraft and Codeshare BMI)
Lufthy "Owned" Routes (Operated by Lufhty aircrft Codeshare BMI)
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