BMI

[TCX69]

The following four key projects were approved in a Board Meeting held on 3rd September 2010.

• Lease extensions for 24 of our aircraft that were due for renewal. We will be able to conclude these extensions when market prices are still low. This will mean that we will have lower lease rates per annum and therefore benefit from significant savings in the future.

Note:
Lease extensions thought to be on all A319's, all A320's & all but one A321 (DF). This information does not include A330 or B757 leases. The latter of which is due to return to Astraeus Airlines in the near future.

• Improving our short haul onboard experience and create higher revenue potential by increasing the number of seats on 18 of our short haul aircraft (11 x A319 and 7 x A320). The A319 will be standardised with 144 seats per aircraft and the A320 will have 168 seats. The seats on these aircraft will be replaced with the current seats used by Lufthansa in their short haul fleet. This work will be completed during 2011.

Note:
A319's G-DBCA-F currently have a config of 130CY
A320's G-MIDO/S/T/X/Y currently have a config of 156CY
A320's G-MEDH/K currently have a config of 22C 102Y

• Revamping our mid haul A321 fleet - this represents a major fleet refurbishment and includes new generation business class seats and new economy seats. Furthermore the aircraft will be equipped with state of the art in-flight entertainment systems in business and economy cabins. Due to long lead times, the roll-out will commence in 2012. This will enable us to be best in class for our strategically important mid haul markets.

Note:
The remaining one A321 not in bmi livery (DG) will be painted during October/November 2010.

• Our current reservation host system needs to be replaced in the coming years and therefore we have decided to start the migration of our booking inventory, codeshare and ticketing systems now. This is a complex 18 month project and will enable us to realise revenue benefits and cost savings from the beginning of 2012. We are planning to switch to a more modern reservations platform, which will enable us to effectively manage our booking, ticketing and codeshare transactions.