BMed
Joined: May 2006
Posts: 261
Likes: 1
From: UK
Having trawled through all the postings on this thread, there seems to be a lot of discontent about BMed.
I, however, have nothing but praise for the airline and the way it is run...........well done BMed!
I, however, have nothing but praise for the airline and the way it is run...........well done BMed!
Joined: Oct 2004
Posts: 29
Likes: 0
From: England
Surprised taht this has not yet been posted, but BMED's deal has fallen through with the Mitaki family......here is the report over the situation.......Apologies if I may ahve contravened any rukes of the site by posting this report. It is not intentional, but I think it is important news for BMED crews......
Cash crisis for BA partner
Steve Hawkes
A British Airways franchise partner is in £30 million rescue talks in a further blow to the beleaguered airline.
*
BMED - formerly British Mediterranean Airways - has written to shareholders warning them that unless it secures more cash it may not be able to pay off its debts.
A proposed deal with Lebanon's Mikati family has fallen through and BMED management is now in negotiations with another airline, thought to be bmi.
Jonathan Grisdale, BMED commercial director, told The Times: "We are trying to get a deal resolved as quickly as possible, hopefully within the next few weeks."
If a rival airline comes up with the money and takes a controlling interest, BA would lose a valuable revenue stream just as it pushes through a programme to boost profits by reducing costs.
BMED has flown under the BA flag since 1997 and runs services to 16 destinations including Ethiopia, Iran, Lebanon, Syria and Uzbekistan.
In 2004-05, BMED paid BA £14 million in franchise fees and charges for other services and engineering. BA made double that from passengers booking connecting flights on its own services.
BMED reported profits of £5.1 million in the year to March 2005 but is expected to lose £21 million in the current financial year after been hit hard by record fuel prices and last year's conflict in Beirut between Hezbollah militia and Israel.
Despite its relationship with BA, Mr Grisdale said that the airline was unlikely to step in itself to save BMED. "BA is our franchise partner. They are quite happy to leave it at that," he said.
Bmi refused to comment on "rumour and speculation".
Cash crisis for BA partner
Steve Hawkes
A British Airways franchise partner is in £30 million rescue talks in a further blow to the beleaguered airline.
*
BMED - formerly British Mediterranean Airways - has written to shareholders warning them that unless it secures more cash it may not be able to pay off its debts.
A proposed deal with Lebanon's Mikati family has fallen through and BMED management is now in negotiations with another airline, thought to be bmi.
Jonathan Grisdale, BMED commercial director, told The Times: "We are trying to get a deal resolved as quickly as possible, hopefully within the next few weeks."
If a rival airline comes up with the money and takes a controlling interest, BA would lose a valuable revenue stream just as it pushes through a programme to boost profits by reducing costs.
BMED has flown under the BA flag since 1997 and runs services to 16 destinations including Ethiopia, Iran, Lebanon, Syria and Uzbekistan.
In 2004-05, BMED paid BA £14 million in franchise fees and charges for other services and engineering. BA made double that from passengers booking connecting flights on its own services.
BMED reported profits of £5.1 million in the year to March 2005 but is expected to lose £21 million in the current financial year after been hit hard by record fuel prices and last year's conflict in Beirut between Hezbollah militia and Israel.
Despite its relationship with BA, Mr Grisdale said that the airline was unlikely to step in itself to save BMED. "BA is our franchise partner. They are quite happy to leave it at that," he said.
Bmi refused to comment on "rumour and speculation".
Joined: Jan 2003
Posts: 84
Likes: 0
From: Cheltenham Spa
sad news
Hi all,
It's a shame that BMED is in such a position. However, the airline can't compete with the "local" airlines. ie, BA to GYD 27/1 return 10/02 £636 (inctaxes) AZAL only £330 (from LHR too).
The BMED model needs to be changed, my suggestions are :
Get rid of the CC Managers, Director if Inflight services, Catering department, quality managers, ground services managers.
I know seems a bit harsh but....
So many managers for such a small airline!
They need
1 customer services manager - for aircraft & ground
2 a proper contracts/franchise manager (looks after BA/suppliers/hotels)
3 catering - pass everything on to GG or Alpha! (quality can be done by pursers by reports passed onto contracts manager)
4 Full-time quality manager that looks after everything!
Anyway, I hope everything will work out.
I'll be in my bunker, waiting for the flak.
Orvil
It's a shame that BMED is in such a position. However, the airline can't compete with the "local" airlines. ie, BA to GYD 27/1 return 10/02 £636 (inctaxes) AZAL only £330 (from LHR too).
The BMED model needs to be changed, my suggestions are :
Get rid of the CC Managers, Director if Inflight services, Catering department, quality managers, ground services managers.
I know seems a bit harsh but....
So many managers for such a small airline!
They need
1 customer services manager - for aircraft & ground
2 a proper contracts/franchise manager (looks after BA/suppliers/hotels)
3 catering - pass everything on to GG or Alpha! (quality can be done by pursers by reports passed onto contracts manager)
4 Full-time quality manager that looks after everything!
Anyway, I hope everything will work out.
I'll be in my bunker, waiting for the flak.
Orvil
Joined: Oct 2004
Posts: 29
Likes: 0
From: England
You'll get no flak from me orvil...you are speaking from your heart and offering relevant suggestions.
I hope that BMED can continue, they are a good airline and many people depend upon them, both as customers and as staff.
The prospect of being in talks with BMI is an interesting one and the future will obviously reveal all, but that would definitely spell the end of the arrangements with BA. Interesting to see what would happen staff wise for BMED, one would presume discussions would initially centre on investing in the Airline as a whole.
Will just have to keep our ears to the ground and keep watching this page.
I hope that BMED can continue, they are a good airline and many people depend upon them, both as customers and as staff.
The prospect of being in talks with BMI is an interesting one and the future will obviously reveal all, but that would definitely spell the end of the arrangements with BA. Interesting to see what would happen staff wise for BMED, one would presume discussions would initially centre on investing in the Airline as a whole.
Will just have to keep our ears to the ground and keep watching this page.
Joined: Apr 2004
Posts: 709
Likes: 0
From: Brighton, England
All this uncertainty is very worrying. Just when i'm settled and think that we are gonna be fine, this latest revelation comes out. I hope BMED can survive all these ups and downs, hopefully we will get some form of official word concerning the pull out of the investors, and the plans for the future. bmi have been exploring the likes of Ekaterinburg and Novosibirsk of late, so maybe a tie up with them would'nt be too bad. They can certainly offer a good range of connections through Heathrow with the STAR alliance, and it would mean a move out of the dreadful T4.
Regards
Mike
Regards
Mike
Joined: Jan 2003
Posts: 84
Likes: 0
From: Cheltenham Spa
Hubbly,
Well if the tie-up with BMI goes ahead there'll be no point of any "management"
The "workers" will be ok, if you don't mind a bit of short and long haul.
From Personel experience, they're good laugh to work for and they have incremental pay for CC ! So yep, a definate bonus for the CC and probably tuff-luck for the office people.
Oh well... nice to the shoe on the other foot!!
Well if the tie-up with BMI goes ahead there'll be no point of any "management"
The "workers" will be ok, if you don't mind a bit of short and long haul.
From Personel experience, they're good laugh to work for and they have incremental pay for CC ! So yep, a definate bonus for the CC and probably tuff-luck for the office people.
Oh well... nice to the shoe on the other foot!!
Joined: Apr 2004
Posts: 709
Likes: 0
From: Brighton, England
That wasn't my point. I was highlighting the fact that we would no longer be handled by BA ground services. T4 is neither here nor there, maybe I should have made that clearer.
I thought SKYTEAM were going to T4, and STAR to the new T2?
Regards
Mike
I thought SKYTEAM were going to T4, and STAR to the new T2?
Regards
Mike
Joined: Jan 2000
Posts: 1,834
Likes: 314
From: UK
Sorry to see the current woes.
BMed's biggest problem is that the aircraft it flies is completely unsuited for its route network.
The limited range of the Airbuses compared to a route network of Khartoum, Addis, Almaty etc means that they end up doing so many double-drop sectors which are really expensive, particularly when landing/handling fees are very high at airports like Ekaterinburg through which these flights stage.
If someone had taken the decision several years ago to equip with 757s (whilst they still could) instead of A320/321s, I suspect BMed would be a very different airline today. It could go direct to every point and have a more competitive product; cut costs; get all of the bags on board (e.g. Tehran-Heathrow with an A321 and six tonnes of bags still in Tehran) and probably tackle some routes which presently would be unviable.
BMed made good money when times were good; but the current issues indicate that the business model isn't robust enough to stand up to a set of circumstances which, by anyone's definition, could be described as unfortunate and bloody unlucky.
Fleet swap between the BA 757s and BMed A320/321s anyone?
BMed's biggest problem is that the aircraft it flies is completely unsuited for its route network.
The limited range of the Airbuses compared to a route network of Khartoum, Addis, Almaty etc means that they end up doing so many double-drop sectors which are really expensive, particularly when landing/handling fees are very high at airports like Ekaterinburg through which these flights stage.
If someone had taken the decision several years ago to equip with 757s (whilst they still could) instead of A320/321s, I suspect BMed would be a very different airline today. It could go direct to every point and have a more competitive product; cut costs; get all of the bags on board (e.g. Tehran-Heathrow with an A321 and six tonnes of bags still in Tehran) and probably tackle some routes which presently would be unviable.
BMed made good money when times were good; but the current issues indicate that the business model isn't robust enough to stand up to a set of circumstances which, by anyone's definition, could be described as unfortunate and bloody unlucky.
Fleet swap between the BA 757s and BMed A320/321s anyone?