What was bmi like in its hey day ?
I recall when bmi started expanding across Europe from LHR and Diamond Service was the key standard. The same standard for everyone passenger regardless of the fare paid, obviously the industry has changed. However, when they came to Dublin with 8 time daily DC9/737 Jet operation there was excitement, alot of people that I knew who came into my friends Travel Agents (1989 ish) people would ask specifically for British Midland and comments would be sort of ' they are very good' it was great experience etc.
However, the magic died around the time after 9/11, there was an absolute race to the bottom and bmi lost its point of difference which a modern and trendy brand that was fast paced but quality, happening etc. Obviously LHR would always have its limiting factor of slot restrictions that would inevitably hold back bmis growth potential at that airport which they are so reliant on.
LHR is a great destination, one that is sought after, the catchment area is huge. To my mind the big issues are these, Cost Base (accept that LHR expensive to operate from, but other stuff leases and headcount to high), & Lack of Point of Difference between them and the competitve set in the London Market.
Finally, they decided upon a strategy of developing a network to oil producing countries or something like that which was to be fair a bit of a one trick pony that now seriously needs to be revisited.
If I was asked to devise a stragegy I would be thinking about Cityjet, the airline was totally ailing when AirFrance came in and took it over, but by integrating the airline into AF and utilisng centralised functions the airline became viable overnight, ((I accept it is losing money now though) but there is some merit in this re Bmi, also staff to aircraft ratio needs to be looked at.
Taking a leaf out of Jet2's book could offer some help. At Belfast Jet2 strategy is this 'filling gaps in the market to destinations not already served' this is pretty much niche territory. This has meant that Jet2 keeps in the main out of the way of the wars that ensue on over served routes.
good luck to Bmi, there is alot of potential to be something great, and there is always time, the upside is that LH is a strong parent who will think longer term.
EI-BUD