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View Full Version : Sir M.B.: BMI identifies long haul destinations in need of competition


jamesbrownontheroad
13th May 2005, 14:53
Press release from BMI...

bmi hails new era of competition from Heathrow

release date: 12/05/2005


first new long-haul competition from a new UK carrier at Heathrow for 14 years as bmi launches services to Mumbai
benefits of competition proved with fare reductions of up to 25 per cent
14 restricted routes needing new competition identified


Sir Michael Bishop, chairman of bmi, the UK’s second-largest full-service scheduled airline, today hailed “the dawn of a new era of competition from Heathrow”, with the launch of bmi’s new Heathrow-Mumbai services.

The four times-weekly service, starting on Saturday 14 May, marks the first new long-haul competition by a new UK carrier from Heathrow for 14 years.

Speaking at a press briefing in advance of the launch of services, Sir Michael said:

"bmi has a proud history of firsts at Heathrow. We were the first airline to compete with British Airways on the major UK trunk routes in the early 1980s. We were the first airline to bring competition to major European routes from Heathrow in the 1980s and 1990s. And now we are proud to be bringing the first new long-haul competition from a UK carrier to Heathrow for more than a decade.”


Sir Michael pointed to the benefits that competition has brought to the Heathrow – Mumbai route, following deregulation by the Indian and UK government's late last year. Business travellers can now travel for up to 15 per cent less and leisure travellers can save up to 25 per cent compared to pre-deregulation fares, he said:

“On every route that we have launched over the last 25 years, we have seen fares fall as a result of our services. Heathrow – Mumbai is no exception.

“Fares for both leisure and business travellers are significantly lower than before the UK – India deregulation, providing a strong stimulus for trade and tourism between the two countries,” said Sir Michael.

The Heathrow – Mumbai services add to bmi’s growing long-haul network - which already includes services from Manchester to Chicago, Washington, Las Vegas, Barbados, St Lucia and Antigua – and Sir Michael confirmed that long-haul routes would be a major element of growth for the business in the future.

He said:

“Our award-winning services from Manchester have proven we can deliver a world-class long-haul product. Now we want to expand our offer from Heathrow.

“We have long campaigned for the right to bring new competition to key long-haul routes from Heathrow, and we will continue to do so. We hope to start services to Riyadh later this year, and as a consequence of further deregulation in the Indian market we are now evaluating options which will allow us to further develop our route network from Heathrow to India. The priority, however, is to increase our Mumbai service to a daily frequency as part of the winter 2005/06 programme.”

Sir Michael identified 14 long haul destinations from Heathrow that would benefit from new competition, including Hong Kong, Johannesburg, Narita, Cape Town and destinations in the US [for press release including full list and notes to editors see link below ].

“More than 15 million passengers a year travel on these 14 routes – and they are being denied real competitive choice because of regulatory restrictions,” said Sir Michael.

“Even a ten per cent reduction in fares on these routes would save travellers over £600 million a year. The majority of these routes are from Heathrow to the USA and the UK and US governments would do well to take example of the UK-India model as a solution to releasing the stranglehold perpetuated by the Bermuda II agreement.

“Just as importantly, bmi is in the unique position of being the only airline able to provide long haul network competition to the UK regions at Heathrow. It is not only travellers in the south-east that will benefit from our new services to Mumbai, but those in Scotland, Northern Ireland, the Irish Republic, the north of England and some European countries such as Belgium and the Netherlands.”



Hmmm... so MB is laying down the challenge once more, without actually commiting himself to anything. But with BMI bringing in a leased 757 while one of the A340s goes to Mumbai, does the lack of available long haul aircraft (or rather the preparedness to have them) suggest they're not really expecting to be allowed onto these routes any time soon?

Coincidentally, I arrived into MAN yesterday on board a TCX 757 from Montreal (with 35" legroom in Y, I can't see any problem with a narrow body on long haul!), and caught sight of what looked like the Icelandair 757 rostered for the BMI transAtlantic ops parked up across from terminal 3 (can anyone confirm whether or not I was imagining it?) Cheap paint job - just the black/blue bmi logo on the white fuselage and small white logo on the tail :yuk:

You may laugh, but I continue to dream of a shiny (and sparkly) fleet of bmi A340s at LHR... hey ho :hmm:

*j*

Caslance
13th May 2005, 15:26
Hmmm....

1) They're A330s, not A340s.

2) No, you weren't hallucinating. It's TF-FII on lease from Icelandair and a proper dog's breakfast it looks too, right down to the rudder that doesn't match the rest of the tail.

3) Thanks very much. Ha ha ha ha ha ha ha ha haaaaaaaa...... :ok:

acbus1
13th May 2005, 18:20
Occurs to me that if MB wants competition at LHR, then a complete reallocation of Heathrow slots to all-comers should appeal to him. Maybe O'Leary would like some LHR slots? Or Easyjet? Lease a few biggies and pack em in. Put the fear of God into bmi and BA, that would.

Oh! Sorry! I see what he wants now............he actually only wants competition amongst a select few, protected by slot allocation........and he wants to be amongst that few.

What's that called, then? "Pseuodo-competition"? :rolleyes:

I.C.Nosignal
13th May 2005, 18:52
Its reassuring to see that acbus1 can be relied upon to demonstrate his child like nature when discussing bmi and its success, these constant spiteful moans show him up for what he is - a bmi reject !! . History shows that bmi brought competition to the market place long before the likes of ryan air and easyjet, remember the trouble bmi had just to be able to operate to places like GLA or EDI from LHR initially ?,yet despite the best efforts of BA to stifle them, bmi then brought more competition to the European routes from LHR , so I think S.MB has a point when he talks about more competition in an area that has long been the monopoly of one or two state owned(or ex state owned) carriers. I presume acbus1 does not begrudge Virgin their slots so why the anti bmi hissy fit??

eventmanager
13th May 2005, 20:26
1 Just because bmi havent announced orders for new shiny aircraft doesnt mean they havent sourced additional aircraft to operate additional routes. And no the aircraft emirates bought wont be coming back!

2 The 757 left MAN today enroute to IAD on time and arrived safely and no the world didnt fall from its axis or the pax revolt at being on a narrow body a/c, Sorry to disapoint the doubters but the its not the first time this a/c has operated for bmi to IAD !

3 Sadly its obvious that acbus1 has not lost his vitriolic bitter feelings for bmi , Its management, Donington Hall, Staff or some of his previous fellow crew.Like wise it remains a constant sadness to many that they were deprived the pleasure of terminating his contract.

4 It is clear that Sir Michael continues to hold the rudder and is determined to guide bmi to additional competition routes.Deep down he is canny business man and wouldnt risk entering a fight he didnt think he had the ability to win.

5 By this time next week the bmi business model will have been revealed and a clear path to the future visable.

So seems the gauntlet has been thrown down and rest assured that SmB has his plans laid down, The cards are simply held close to his chest.

;)

Red 69
14th May 2005, 19:46
"A clear path to its future" What, bmi? That'll be the day or certainly a first!!!

All it's going to show is a reduction in on board service and basically mirror what Aer Lingus are doing! Market followers not market leaders. That's bmi!

I hope I'll be eating my words when this new business model is revealed but I'm not holding my breath!
:D

acbus1
15th May 2005, 06:34
If MB says he's so keen for competition, how come I can't think of a single airport (apart from the slot-protected LHR) bmi haven't run away from when competition against them has moved in?

Prime example of recent years is EMA. What a superb example of what bmi is all about!

High bmi ticket prices and poor service and efficiency for decades until Easyjet moved in a few years ago with their decent management and lo-cost operation. bmi went from moaning about poor business at EMA to a blatant copy-cat of Easy's setup (at the cost of considerable human misery for existing staff) . EMA business went ballistic. Now bmi is running away from the competition at EMA and messing around at BHX.

Talking of BHX...... bmi ran away from there not long ago when competition on the BRU route moved in.

The list is endless.

No doubt someone can find a few success stories (go on......convince us), but in the vast majority of cases it's all very, very pathetic.



Nope, give bmi the protection of some LHR slots and decadent old BA as the opposition and they'll show you "pseudo-competition".

Of course, a Thatcher/Major government would be nice. It seems to have helped things along in the eighties. Knighthood as well......but then, they are like University Degrees under Labour......everyone has one these days. It's not what you know.....it's who you know.

And I should imagine that there's nothing like some old Public School chums inside the right circles (but that's another story altogether and one I'm not going into).


"bmi welcomes competition" ??????

Yeah.....right! :rolleyes:

Northern Hero
15th May 2005, 10:51
" A clear path to the future visible" :D

Sorry, but you cannot put three letters such as bmi and the above statement together. Their path is currently completely overgrown and a tangled mess. The dead wood of some of the management needs cutting back and then start to communicate with each other, plus re-invent the Marketing dept. as this is non existant unless you're in London.

They need to consolidate what they have already and build on that, rather than start messing about with new routes to BOM and RUH at the expense of a good product at MAN. I saw the Icelandair 757 at MAN the other day and I agree with Caslance, it looks a real dogs' dinner and that sums up bmi at the moment. It's a shame because there are good people there and it could be a great company.

Why start domestic Irish services (Regional) when they could grow their current services ex LBA, which is crying out for expansion, perhaps in co-operation with SK & LH

The Business class product is to be scrapped so they may as well re-name themselves bmi baby.....;)

bmibaby.com
15th May 2005, 13:35
bmi is currently undergoing a massive report into their business activities, which, if all is to be believed by management, and I have to say that recently I won't trust them as far as I can throw them, this new report will be revealed initially internally, and then to the general public some time over the next fortnight. This will reveal bmi's plans for the next eighteen months, especially in regards to their shorthaul operation stratergy & where next to move into on longhaul.

It is now difficult for the proposed expansion that "Northern Hero" is proposing, with additional flights from certain bases such as LBA. bmi's inability to see these regional airports as having huge potential for additional flights, has meant that no-frills airlines like Jet2 have been able to move in. With Jet2's expansion, there is little room for bmi or our subsidiaries (regional or baby) to expand without ending up in some sort of aggressive fare war.

It's unlikely that this new business report will involve bmi cutting out business class on shorthaul operations. Whilst this has been widely touted, the airline's shorthaul business class is popular both fare-paying bmi & star alliance passengers, as well as those who are upgrading. bmi will lose a lot of their diamond club passengers to British Airways or other network carriers out of LHR the same way they did at EMA when all bmi routes went to bmibaby, and there was no extra service available.

I.C.Nosignal
15th May 2005, 16:37
Now acbus1 thinks there was a government conspiricy to aid bmi and SMB! what a complete tw*t (insert 1st or 3rd vowel as you think appropriate dear reader) I think its time to face the fact that you need some therapy acbus1, all this anger can`t be healthy, Try moving on from your past life which quite clearly did not agree with you, you seem better off without bmi and bmi are certainly much much better off without you:ok: :ok: