bmibaby
 

I have been reading all the comments about the whole idea of EZY or anyone else for that matter buying WW. Ok, if it happened they would be have to inherit some old 737s and merge a different work culture of some sorts into EZY, but this they have done before with Go.

EZY would not worry at all about the aircraft, as they could convert to 319s in no time at all.

The bases in some cases may conflict with local EZY ones. Eg BRS v CWL, LPL v MAN , BHX v EMA etc. However, for eg Manchester and Liverpool can provide enough Business and leisure travellers for each airports business even for 1 airline, in a nut shell what I mean is that neighbouring bases would not threaten each other. Luton has many duplicate services from LTN & STN with EZY and there is no problem.

As regards flying Irish routes from the UK if they took over WW, i cant see FR challenging them on existing routes. When EZY arrived at STN FR didnt launch the same routes for the most part. The two airlines dont actually serve many exact same airport pairs except a few from STN and a few elsewhere. They did react on LGW routes to NOC ORK & SNN but that was new business. What does anyone else think ?

It's an interesting thought that was posted about AB being the likely buyer( assumiong that there is a buyer) . Although there is no facts on the idea of Bmibaby being sold alot of people that are on here and alot of ppl I have spoken to especially at bmi think that bmibay is not being viewed as core to the new strategy.

We will wait & see.

EI-BUD, thank you for a balanced and well-informed post. As you mentioned, and I stated earlier up in the thread, bmibaby currently are not up for sale, and I am not aware of bmi unofficially putting out a tender to see how much we'd be worth or who might be interested in buying us. However, following the purchase of BMED and the expansion of bmi regional, it seems that the bmi group are now going after niche high yielding markets, realising that their core market of a decade ago being a second player to BA in shorthaul trunk routes, now belongs to EasyJet. They also have to contend with a more efficient BA (though admittedly the last six months haven't really shown this) and a more efficient and environmentally-aware rail network. bmibaby are in the unfortunate situation that our geriatric fleet of aircraft and our spartan route network are all predominantly in low yielding markets where if the fare isn't low, the passenger will either fly the competition or not travel. Simply baby doesn't have the leadership or cost structure to concentrate on this market the same way that an airline like EasyJet or Ryanair can. Though EasyJet have publicly stated they plan for all of their growth to be organic, I think the reason they've been mentioned as an ideal suitor to bmibaby, is because both companies serve primary airports, and bmibaby uses EasyJet's cast-off B733s. EMA/BHX are just up the road from each other, but serve completely different markets, similar to LTN & STN. I'm not so sure EasyJet would be keen to stay at CWL given that their BRS base just up the road is growing successfully, and CWL is really the dustbowl of baby's operations. Manchester, I'm unsure of. EasyJet have been to MAN before to look round, but I wonder if the considerable other low-cost competition (Thomsonfly, Jet2, Monarch Scheduled, Flybe) might put them off.

Now will BMI keep BMEDs routes ?

MBA Exercise
 

"Outline and explain the strategy being implemented by the BMI group."

An impossible question.

To answer some of the questions posed on this thread from a business point of view.
First, why would EZY purchase BMIbaby? They have already outlined their strategy, which is to grow organically. Acquisitions are expensive and time-consuming and far more fail than succeed. If EZY wanted to build their business quicker, they wouldn't have offloaded their first 'new' 737s. They have plenty of aircraft on order which are efficient, low-maintenance, and planned. If they bought anyone else they would get older, less reliable, less efficient aircraft for their money. No brand is stronger than EZY, so they have little to gain from buying an established brand. (I would imagine EZY is as well known in Birmingham and Cardiff as baby). If they want specific routes, they could compete with baby, charge £0, win the battle, and consolidate their gains - cheaper than acquiring!
(And remember, the Go acquisition was made when EZY were far smaller than now).

Second, what will BMI do with BMED? Answer, get out of the BA franchise asap. It doesn't add much where BMED is the only UK based operator on the route, and the alternative is a rusty Tu154 operated by someone you've never heard of. (OK, a slight exaggeration). Keep up all the routes. Price the tickets for profit. Lots of the destinations served by BMED are used by business people on expenses, so they won't be in a hurry to save cash or fly in a rusty Tu154!

Third, what is the strategy again?

- Regional - Business orientated, full-service UK regional airline with Barbie Jets operating short hops (could be BA Connect in drag?).

- Baby - cherry-picking routes for profit but operating at a disadvantage against more efficient, better-funded rivals such as FR and EZY.

- BMED - High-yield, protected city routes with limited competition. Cash cow. Go for it!

- Mainline - Competing against an improving BA on a small range of LHR routes with a historically better service that has been devalued.

If I were Michael Bishop, I'd ditch baby as soon as possible (but EZY won't be a buyer), concentrate on Regional, going for ex- BACON routes where they are dropped, milk BMED's lucrative routes, and keep mainline for the value of its LHR slots.

And if anyone at BMI wants to offer me a job in strategy, send me a pm!!

A330 off to BMED side perhaps?

Oh that would be nice!
 

It may have been true once, but less so as time goes on............

Once upon a time our only competetion would have been the local lot flying a Yak/Tupolev etc...

Nowadays, even the locals have modern equipment and we have western competition from our own Star Alliance colleagues e.g. Lufty.

Ok, admittedly not from LHR, but a large chunk of our business, (and the reason we are/were a BA franchise) is that we continue the journey for transatlantic pax. If your journey starts in USA/Canada you really don't care if you change at London/Paris/Amsterdam/Frankfurt............ Who's going to give you the best service?

The Caspian oil field has given great business over the last 5 years or so, but the pipeline is now complete and Baku is changing..... However, there are other oil/gas fields emerging though so it really needs a marketing team who have got their eye on the ball to meet demand as it develops and get in ahead of the competition. Ditto Africa.

We were a profitable Company not too long ago. But, focus and strategy got sloppy in an extremely volatile market. New management came in a year ago and a broom was swept through a lot of the upper levels to great effect. But unfortunately, a weak company, hit with a double whammy of its sure fire winner (Beriut) plunged into war and the fuel crisis, took us to the brink.

If the wheels are to be believed, they reckon we have a cost base comparable to Easy and Ryan and that's what the BMI Board found attractive (amongst other things).

So, whilst I'm grateful to BMI for my job, I believe it's a two way street. We can certainly bring something to the table and I for one, am looking forward to the challenge. :D

I don't know how the integration of crews (if any) will happen, but I would suggest that you cast aside any pre-conceived ideas you have about our destinations if you come our way! There are challenges but you WILL have a good time :cool:

"BMI staff travel are apparently not booking manchester - barbados after may 07.

they are telling staff will be re-routed via London.

anyone know whats going on?"

There is plans in the pipe line that they are moving the BGI route to LHR cause it has more oppertunites from LHR once BW have move out of LHR.

LGS6753 Comment on BMI strategy
 

LGS6753, I read your post re: the strategy of bmi.

Overall I would say you are very close to the mark. However, you said that EZY's strategy would be to 'grow organically', this sounds great but I have to say that if opportunities present themselves many general strategies are sidelined. Case to point out is at FR , MOL had said the same thing pre BUZZ takeover.

You also said 'No brand is stronger than EZY, so they have little to gain from buying an established brand', well I have to say that If Easyjet bought another airline it would be rebranded EZY so this issue would be irrelevant, bmibaby brand would disappear if it was taken over????

Jet2 are coming along nicely and in my view it willl take FR or EZY to contain them. they are boasting about being No.1 operator at MAN. Quite an achievement for a small carrier like LS .

In my view its only a matter of time before either EZY or FR get the deal that they want at MAN . Once BA Connect are gone MAN airport management have new agenda. What does anyone else think ?

T1 or T4 ?
 

Does anyone know where Bmed will fly from out of LHR ?

I know they are T4 at the moment, however will they move to T1 when bmi take control ?

From what I understand Bmed and bmi will be different departments, and there isn't enough stands at T1 for the flights as it is so ading exta a/c may be abit of fun.

There'll be plenty of free stands in T1 early next year!

if you feel in the dark now just wait till you hear all the news from toad hall
(or lack of it) welcome to mushroom airways:ok:

rgds

K,I,L,

BMI Ireland
 

Any plans to expand on the DUB service from LHR and maybe try ORK?! Now that they have an Irish website and brand recognition they might as well make the most of it! :)

ORK would be nice indeed for AC-BD transfer!

The bmibaby 4th Aircraft is going the Birmingham!

Increase on schedules at CWL means that they will keep their 3rd aircraft. There will be a new 4 weekly route to Murcia, also there the BFS 2xDaily schedule is move to a more Biz friendly schedule.

Scotland also sees a major expansion-
So, this years expansion is complete, schedules are full, except for BHX. There, who knows if there will be more routes. But good news for BHX and CWL. Nothing for EMA, and MAN.

Smile!!!

Baby
 

Smile

BHX appears to have one spare slot early morning between 26/5/07 and
2/9/07 when Edinburgh gets the last "new" aircraft. Okay it appears
it will be operating through BHX for virtually all of the day :) and only
N/S EDI.

I assume a couple more new routes for BHX - any ideas bmibaby.com?

I'm glad Cardiff have maintained the third aircraft and hopefully come
2008 it will increase.

I thought BHX might get CDG, with BMI pulling off the LHR (slots) and flybe/BACON in a total mess at Brum. Milan would be another
destination for baby at BHX if they had the aircraft available.

Nothing at Manchester, again I suppose it is aircraft availability
(or should I say funds to purchase).

OP

bmibaby
 

Well OltonP, I said BHX had some holes in it. Wheteher they will just sit on the ground doing nothing, or what is unknown too me. It is a bit late to be realesing the rest of their summer schedule later than this.

And the reason for little expansion I dont see mainly as funds. More like the bmi family board room (By that I mean mainly SMB) is like a pre Margaret Thatcher Conservative Cabinet. The only sounds that show life are muffled coughs of geriatric fools. That incapable of running a airline in this 21st centuary theatre means they are only going one way, ... down.

I mean the UKs 3rd largest LO-CO carrier that flys the UK flag (Basically not including RYR) now that Jet2 are the 2nd. And WW are not going too be third for long. I mean how long before Globespan, or some other poor outfit overtake the baby (Not even including TOM), that needs to do a bit of growing up.

The airline really does need a buyout too secure jobs, and the airlines future, as either WW or some other carrier brand. Like a post I made prior about Air Berlin, who I thought would be the best airline too buy WW out, the WW posts diminished after the BMed affair. A losing money carrier with incompetant managemnt buying a losing money outfit? Well it can only lose money cant it. (No question mark here inteneded as practically guarented)

Hope my post has been informative and usefull too you all, Smile!!!

Regarding the recent developments by bmibaby and their obsession with BHX (all 4 a/c are there now) wouldn't it be more appropriate to rename the airline 'birmingham baby' as they seem to care very little about their other bases especially CWL where they have been happy to ramp up PMI to one day but have left thousand of business pax in lurch by downgrading GLA. bmibaby are a joke!

MME could have told you that!

exactly what they have done- missed it! A real shame .

Baby
 

Topslide6 - Spot on.

The only criticism you could level at Baby is the length of time they have
taken to do it but there are probably multiple reasons for that.

Examine Baby's record at BHX, how many flights have they pulled?

Basically one in two years (Newquay) and that for a LoCo is not bad.
Whatever the shortcomings there are in the BMI group the one aspect
at the moment which does stand up to scrutiny is the Baby BHX strategy. As I have said on several occasions they are slaughtering
the opposition pax wise, I just hope they are making some money.

OP

I hope that next year will see more a/c purchased by bmibaby and possibly an extra a/c based at CWL, to add more frequency on busy routes expand add more new routes.

It sounded like it was a close call on where to base the last a/c and that they wanted to give FlyBe a fight at BHX, With the added route of Murcia and added frequency this year on Bucket and Spade routes, could be testing the waters for further expansion at CWL in 08?

BmiBaby must be aware of the rumours speculating about Thomson leaving BRS and going to CWL, and must be aware that FlyBe are having a look at CWL. I Bet the reason that they changed the BFS times to business friendly was to take on FlyBe which are operating a Belfast City daily from June.

Smile!!!
 

Well its certainly informative, it tells me that you are either 6 or clueless about the airlines you so confidently spout on about.
When you eventually leave school I hope you have a better grasp of English:rolleyes:

I think BMED was planning Lahore, maybe has somethnig to do with that.

Regards

Mike

Stupid question, with what a/c would we use on these routes ?

bmibaby
 

I think the decision to base the 4th new a/c at BHX was a sensible, if not slightly predictable one. Success at BHX is baby's last hope of becoming a big player in the LOCO stakes. But what will happen at their other bases? Are baby in danger of becoming a one trick pony, highly successful at BHX but nothing but a fringe airline elsewhere?

EMA & MAN used to be their 2 biggest bases a few years ago with the potential to be huge had they been on the ball. Particularly at MAN where they were the only true low cost carrier for a number of years (ZB was still full service back then, TOM was still BY and LS were unheard of this side of the pennines). Yet growth of at these bases has been more or less stagnent and they have been overtaken by FR and EZY at EMA and by ZB, LS and TOM at MAN and don't seem too interested in even trying to compete. I reckon they've still got the chance to make things happen at CWL but only if they pull their finger out soon and really focus on trying to make this base work.

I know for a fact that they are popular ex MAN and do very well on the routes that they do operate. Is it a case of they are scared of competing against what they perceive as bigger players or are they simply happy enough to live in the shadows of their rivals and achieve success on the few routes they do have?

Will baby ever be a big operator out of MAN, EMA & CWL or will they just sit back and be content with what they've got?

Why on earth has BmiBaby pulled a popular all year round route to Prague for a bucket and spade flight to murcia.

I'm sure that to qualify for saying that theres further developments at CWL is to actually add flights and routes not replace them.

BmiBaby really needs to pull their finger out and be a bit adventurouse, their no longer a Baby now they established theirselves at Cardiff and were the biggest airline at the airport. But now they have been taken over by Thomsons. If they don't base an extra a/c at CWL next year with new routes and bring back PRG then i think Thomson will push them out and go to town.

And was looking at their prices for ALC Jun07
BmiBaby - £170.20 RETURN PP (Based on 5 people)
Thomson - £166.76 RETURN PP (Based on 5 People)

Effective from the 29th of Nov 06 there was a charge for checked-in luggage on BmiBaby of £2.50 online or £5.00 at check-in each way.

This has now gone up to £3.00 online or £6.00 at check-in. How much money does this so called lo-cost carrier want from the consumer? It better be worth it for passengers flying from CWL.

Sort it out Baby and start treating CWL like a propper base and start expanding properly.

Some MIGHT notice that this thread has been VERY heavily moderated. It should not take a professor of common sense to understand why.

It certainly wastes our time and I suggest that you think very carefully before you post OR in which forum your post should be.

The mods

mathers_wales_uk

bmibaby don't care about cwl now, if they are content with GLA 1*daily leaving thousands of business pax in lurch and with no alternative to BRS(myself being one of them) and then going and pulling PRG altogether knowing that this is infact a popular route then this just goes to show that CWL was just a springboard to greater name recognition. But instead of other carriers coming in to take on baby at CWL, the fact is that baby can do what they like here because no one is bothering to fight them which makes it all the worse that baby are pulling core routes.

and pulling PRG altogether knowing that this is infact a popular route



It may be popular, but if the yield is poor it's ditched. And yield is what it's all about, especially with LCC's

Back to business
 

Following press release has appeared on BMI website today


bmi, London Heathrow’s second largest airline, is to launch a new customer initiative focusing on the business traveller following eight months of consultation and feedback with both customers and staff.
The initiative, which goes live on 2 April, will see the introduction of an improved offering and product for the airline’s most loyal customers – diamond club members. While a paid-for in-flight catering service will remain a feature of mainline services from Heathrow, all diamond club members* will be entitled to complimentary food and drink onboard, priority seating towards the front of the aircraft and will continue to enjoy the benefits of one of the UK’s most generous frequent flyer programmes, through the lounge network and rewards scheme.
Under the new initiative diamond club will see the introduction of a new tier – blue plus – which is automatically awarded once 3,000 status miles have been earned in a 12 month period. Holders of blue plus, silver and gold cards will receive the complimentary in-flight meal as well all other diamond club benefits.
Nigel Turner, bmi chief executive officer, said: “We know that our most important customers are frequent flyers who often travel with us on business – a group that makes up a considerable proportion of our total passengers. They are looking for value for money, friendly welcoming service and want to be recognised and rewarded. Our new initiative delivers on all these points as well as helping to set out the future direction of the company, building on key strengths such as market-leading punctuality and a quick and efficient airport experience.
“Whilst our focus is on the business traveller we will continue to apply our ‘making travelling a pleasure’ ethos to all our passengers, whatever their purpose of travel. Customer feedback shows us time and time again that our people make bmi the preferred choice of airline, and significant investment in ongoing training will ensure that continues to be the case for all our customers.
“The airline industry has been through a period of massive change in the past five years – a process that continues today. By developing and evolving our products and services we can ensure we continue to meet and exceed the expectations of our customers and remain competitive in the marketplace.”

Also BMIbaby are to join the diamond club in the near future.

It's sad that the BOB service is remaining but certainly a step forward for BMI

bmi Regional are launching 6x weekly flights from Leeds Bradford to Lille. The first direct service from the Uk.

Leeds - Lille
 

On the face of it this seems an odd choice - anybody know the thinking behind it i.e. are there any particular links such as industry?

So basically, they're bringing back business class, even if they didn't directly refer to it as that (for obvious reasons).

I think bmi finally decided their direction in life...

I'm confused as a newt.

The majority of the new benefits have been available at CWL for a while now, except for the business points and the ability to alter the return journey on the day of travel free of charge if it's earlier or £35 if it's later.

The problem with this at CWL is that it wouldn't be possible for the business passengers to go on a later or earlier flight because there isn't one as theres only twice daily to EDI, BFS and only once Daily to GLA. (Except for fridays where EDI is 3 x daily)

So really not much of a change for CWL. What would the benefits be for the points?

MR210.

Why don't you just invite BMI to take space on this forum? It would help the cost of running PPRuNe but DO NOT put their ads on here.

This has all be posted at the top of this forum for over a week now.

Have a rest while you consider.

PPP

Flyme
 

Baby should take note. Flyme, a Swedish airline has gone bankrupt. They operated 7 737s. Surely Baby should try to get at least one or two of them to expand their bases at Cardiff/EMA/Manchester or to set up the rumoured new base at Edinburgh.

Three of the 737s were ex Asteraus so they could revert to British registraion tomorrow.
I would think they would be available for British carriers very quickly, with the summer around the corner not if one looks out of the window today very wet aircraft might be at a premium

Well maybe Flybe will take them back on in view of there problems with the Embraer so Baby act quickly.

Could LS jump in for the 733s? Currently have 2 Futura 734s for the summer, along with other aircraft. Could the 733s be taken instead of the 734s? Afterall, the 733s would fit better into the LS fleet as they are exactly the same as their current fleet!

Any thoughts, or should this be in the LS post?:O

The 734's are to replace the 752's that were lost (due to them requiring too much work to get them serviceable again?) so replacing them with 733's would be another step down.