Has anyone actually read what it states in the interim report about BMI...
http://investor-relations.lufthansa....R-2011-2-e.pdf
The crises in North Africa and the Middle East continued to have
a severe impact on the second quarter result posted by British
Midland. At EUR 396m, revenue was down 5.0 per cent on last
year. The operating result came in at EUR – 120m (previous
year: EUR – 93m).
British Midland consistently upheld its strategy of replacing lossmaking
routes on its domestic market with profitable services
to neighbouring countries and medium-haul routes, therefore
closing its base in Glasgow in the second quarter. In addition to
this, the decision was taken to close bmibaby’s bases in Manchester
and Cardiff when the 2011 winter flight timetable comes
into effect. Instead, new services from London Heathrow to
Casablanca,Marrakesh, Bergen, Stavanger and Basel will be
included in the flight plan.
Flights to Tripoli remain suspended throughout the summer flight timetable. It has also been necessary to cancel some flights to Damascus due to the unrest in Syria.
In the UK home market, the new set of fees introduced by
the operator of London Heathrow Airport will further drive up
expenses for flights in the future. British Midland has filed a complaint
against the new regulations with the Civil Aviation Authority.
An additional project has been initiated as part of the strategy process
to achieve the airline’s goal of medium-term profitability. This aims to sharpen the company’s focus and thereby improve its earnings position. A sales and marketing initiative was also launched. However, a negative operating result is still expected for 2011. Alongside negative market conditions, this is due to
high anticipated fuel costs based on forecast price trends and
British Midland’s relatively low level of hedging by Group standards.
In the light of the ongoing difficulties in British Midland’s key
markets, an improvement on last year’s operating result looks
unlikely at present.
Some statistics
Passenger numbers - 6.6%
Employees + 2.1%
Revenue -5%