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The Changing Face of BMi

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The Changing Face of BMi

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Old 23rd May 2005, 11:58
  #21 (permalink)  
 
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Didn't Swissair do this just before they went on their arse? bmi...you are the weakest link...goodbye!
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Old 23rd May 2005, 11:59
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Spacemaid, and you say you do not work for BMI, hmmmm.
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Old 23rd May 2005, 14:14
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Not brilliant news for those directly involved, especially if it means a significant change in conditions. Conditions for cabin and flight crews will mean max hours and min rest! BUT it's been on the cards for a while as commercial aviation really is like getting on a bus/train nowadays and airline bosses are fully aware of the market forces. This, though, is the beginning for major changes in UK shorthaul flying. On a plus side, low cost ex LHR is going to be major competition. Paying very little for a flight to Europe AND from Heathrow, why fly anyone else for the sake of "free" luke warm tea and a calorie laden muffin?

BMI may be the first, but only the naive will believe that "full service" airlines can continue make money in Europe!!

Who's next?
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Old 23rd May 2005, 14:25
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Maximum hours minimum rest you still work considerably less hours than the ground force or for the matter many others in the EU. Surely you have to be glad that many of you have had a good run. The sooner it comes to BA as well cannot be to soon, finally remember the ground services people that were axed a few years ago I recall no sympathy from the BMI flying community then.
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Old 23rd May 2005, 14:25
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All I can say is, BD, swallow your pride and merge with VS! These two airlines were made for each other, makes perfect sense! That way, VS gets the LHR slots it wants so badly, and BD can start US flights from LHR, albeit with VS! All we have know, is BD with an identity crisis, and VS, a brilliant airline without the tools for expansion!
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Old 23rd May 2005, 14:30
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I'm beginning to see a huge opportunity here to establish retail outlets close to gates, selling quality packaged mealettes at a price lower than that of the airlines. These would be attractive to pax who know that, when the time comes on board, the money that they would need to pay for their coffee/croissant is in their bag out of reach in the overhead or buried deeply beneath the seat in front.

Come to think of it, why don't the airlines establish such outlets AT the gates to avoid the need for the onboard money scramble - although they would still need to clear up the mess?

Then they could also modulate the price of the meals to reflect competitive pressures, even giving them away as promotions under certain circumstances.

Come to think of it, isn't that just what BA did for its catering in its early days? Didn't last long though......what comes around, goes around!
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Old 23rd May 2005, 15:09
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concorde001, to you it might make sense, why merge them both when Virgin could be just pulled into the Star Alliance, don’t forget 49% of it is owned by SIA, who are also a Star member, seems to work for the rest of the Star members or should they all merge as well, anyway for the sake of jobs and competition leave them separate.
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Old 23rd May 2005, 19:28
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Seloco: Most passengers who know already bring a packed lunch anyway.

And there's the story about the family on the charter flight to somewhere. They were offered meals, but the mum shook her head sheepishly, pulled out some packets of sandwiches and said, "We're self-catering." (Bless)
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Old 23rd May 2005, 20:09
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Maddog, it makes sense specifically because of the LHR slots and transatlantic rights issue. Then there is the fact that very few (none that I can think of, but I stand ready to be corrected) of the international alliances include two member airlines from the same country. The possible exception might be within the US, where the sheer size of the internal market may make this possible.
As for
anyway for the sake of jobs and competition leave them separate
bmi and Virgin don't have any current routes where they are in competition!
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Old 23rd May 2005, 23:29
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Didn't Swissair do this just before they went on their arse? bmi...you are the weakest link...goodbye!
As has been pointed out earlier this is exactly what Air NZ did on their domestice (where they had less competition than BMI) and it saved them rather than destrpying them.

Swissair had incredibly high running costs and a more complex route structure that led to their downfall.

On the subject of STAR - US Airways - they are part of it, does that mean America West becomes part, and also US code shared with United (and presumably linked in with BMI long haul at IAD) - if that is the case with America West AND Virgin it would be vast.
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Old 24th May 2005, 02:35
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I've got a really good idea. We are losing passengers to low cost airlines but our cost base is higher than theirs. So why don't we reduce our service to their level, but still charge more because our cost base is higher.........

I've got another good idea. Our cost base is higher than the low cost guys and we are losing passengers because our service is just as crappy as theirs. So why don't we justify the extra money by offering a premium service. You know, sensible seat spacing, decent food, fast check in, give them bigger carry ons by throwing the crew bags out of the cabin and having a one row luggage locker. Of course, we still need to cut our costs, but I bet the passengers would pay more for a service like that.......

I'm fast running out of airlines to fly with, and I don't think I'm alone.
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Old 24th May 2005, 07:03
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What's now swimming to the surface is the service level differentiation and the concept that bmi's been "over delivering" (So sez young Nige) - buy the cheapest fare and the first human interaction with bmi you'll have is when you board the aircraft. You HAVE to book via the internet, you HAVE to use a check-in kiosk.
That's where the savings are.
And as for self-catering - I always pack a lunch,even if I'm on a firm Business ticket on longhaul. (How often do you get downgraded to Economy and end up weak with starvation by the time you get to LAX. Mind you, it's a hard call if you get a First upgrade - bacon sandwich or caviar....!)
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Old 24th May 2005, 09:35
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CarltonBrowne

quote

bmi and Virgin don't have any current routes where they are in competition!


Mumbai?

HWB
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Old 24th May 2005, 12:53
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I think there is more to this than meets the eye!

I dont think this is just about making sure that shorthaul bmi will survive i think this is the start of trying to get rid of 85% of it!!!

If you look at what they are doing they are going all out to make the biggest profits of their time. Bmi is an airline that has never been interested in showing big profits and probably rightly so as its a private company, yet now they are broadcasting they want to save 30 million ontop of 2.1 millon profit!

This sounds to me that they are trying to get out the shorthaul market bar a few trunk feeders and go entirely longhaul where they are making a relatively hefty profits. That 30 million sure will come in handy in starting new routes!

Maybe, and this is just specualtion it has something to do with Riyadh and getting some help form the government in promising new routes? Big gamble considering they got stung before though!

However that would also explain 2 new 330s this year and at least one new widebodied airbus a year for the next 3!

Who knows maybe bmi finally got some direction!
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Old 24th May 2005, 15:58
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I think the business ethos behind the changes is fantastic.

Th management team have seen specific areas of improvement in taking the company forward so that we can expand our LH routes from LHR.

I can't wait to be part of the changes, even if some of the other employees aren't too happy about it.

Something needed to change and this is a brilliant way forward.
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Old 24th May 2005, 17:30
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BMI have joined the race to the bottom of the barrel. They are rowing in behind Aer Lingus and EZY in the idea opf trying to be a FR Clone.By the time they get to the bottom of the barrel they will come to realize that thir is no money in flying Pax around for £20 as every other operator will be trying to undercut them and each other.
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Old 24th May 2005, 18:40
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'Flying Mech'

I think you will find bmi jumped on the loco bandwagon 2.5 years ago with their low cost airline bmi baby!

The changes to bmi that they are making are not entirely in line with lo cost in fact the only thing they have in common is pay for food and a few seats will be allocated at baby fares!

The fact is that they willl have business class lounges, normal turnarounds, proper cleaning on every other flight, layovers, business class on some routes and relatively (compared to lcc) non cramped normal pitch seating which is allocated and with the option to check in at home on line. They also have frequent traveller programmes and is a member of star alliance etc etc makes it slightly different from all other low costs and as far as ryanair they are not even close to the same league and work completely different markets!

I say good luck to them. I am sure with Willy Wonker taking over BA it wont be long before they start implementing similar ideas (as stated in the BA hater mail on the 12 May) and if anyone has the ability to under cut ez, fr and other low costs its them!

I must confess if that does happen it will be a sad day to see normal frills shorthaul travel dissapear!

Last edited by MAVERICK 1; 24th May 2005 at 19:18.
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Old 24th May 2005, 19:21
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Well said Maverick!!!
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Old 24th May 2005, 19:27
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Seems to me that bmi are trying to replicate the Debonair model with congested airports and some business class. Where are they now?
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Old 24th May 2005, 19:55
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Indeed. More to the point, where were they to start with? Luton. Where were the longhaul connecting interlining passengers? Alliances? Heathrow.
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