BMI-The New Low Cost,No-Frills Airline
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BMI-The New Low Cost,No-Frills Airline
An article in todays Sunday Business newspaper, says that BMI will signal plans for a radical restructing aimed at turning it into a low-cost airline.
Ried will tell a conference at the Institute of Economic Affairs that full-service carriers need to slash fares and costs to survive. He will call for working pactices in aviation to be revolutionised.
He points out that main-line industry has outmoded labour practices and low productivity. That applies particularly to pilot hours.
The article does continue. But I`m not sure how to set up a direct link to the article.
Ried will tell a conference at the Institute of Economic Affairs that full-service carriers need to slash fares and costs to survive. He will call for working pactices in aviation to be revolutionised.
He points out that main-line industry has outmoded labour practices and low productivity. That applies particularly to pilot hours.
The article does continue. But I`m not sure how to set up a direct link to the article.
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What do you think for instance of 75hrs a month? Does that sound low?
Yes of course it does, but you should not forget this does only account for the time the engines are actually turning. Don't forget things before or after a flight nor anything in between is counted in all this.
A crew flying for 70hrs a month on regular medium haul routes (like those at BMI for instance) is on duty for at least twice as long (so around 150hrs). This relates to a weekly duty time of about 38hrs which is a regular working week for people with a 'normal' job. Add to this the fact that flight crews also work on weekend and night shifts, during holidays on very irregular times and have generally less days-off then other people and you see how totally detatched from reality this proposal for a huge increase is.
It's not that I am against any increase, as long as they keep pace with the productivity level in day to day other jobs as well. I feel however that since hardly any manager ever really experienced the kind of live flight crews have, they have problems to deduct from their own abstract duty rules the kind of professional life flight crews have.
Ok, nobody will drop dead from flying 80hrs/month iso 70, but one must admit that there must be a limit somewhere.
I have flown for a charter airline (resulting in very bussy duties during summer holidays) and I can assure you that with for instance 95hrs/month (doesn't sound too high, does it?) you have to sign in at the airport every single day from 7 in the morning till late at night with not more then 3 or 4 days off! It is immediately clear that you can do this one or two months, but that nobody can physically keep pace with it for much longer.
Yes of course it does, but you should not forget this does only account for the time the engines are actually turning. Don't forget things before or after a flight nor anything in between is counted in all this.
A crew flying for 70hrs a month on regular medium haul routes (like those at BMI for instance) is on duty for at least twice as long (so around 150hrs). This relates to a weekly duty time of about 38hrs which is a regular working week for people with a 'normal' job. Add to this the fact that flight crews also work on weekend and night shifts, during holidays on very irregular times and have generally less days-off then other people and you see how totally detatched from reality this proposal for a huge increase is.
It's not that I am against any increase, as long as they keep pace with the productivity level in day to day other jobs as well. I feel however that since hardly any manager ever really experienced the kind of live flight crews have, they have problems to deduct from their own abstract duty rules the kind of professional life flight crews have.
Ok, nobody will drop dead from flying 80hrs/month iso 70, but one must admit that there must be a limit somewhere.
I have flown for a charter airline (resulting in very bussy duties during summer holidays) and I can assure you that with for instance 95hrs/month (doesn't sound too high, does it?) you have to sign in at the airport every single day from 7 in the morning till late at night with not more then 3 or 4 days off! It is immediately clear that you can do this one or two months, but that nobody can physically keep pace with it for much longer.
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As far as I remember, Midland always been a low cost airline, in as much as M Bish has always made a heafty packet, at the (in)expense of his loyal lambs. Time to give it a miss guys, there are greener, or should I say more golden pastures out there. Fly the flag?
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Prisoner,
Do please tell where? My impression is that there aren't any pilots' jobs on offer at the moment. If you know differently, I'd love, I say I'd love to know.
Whilst it's nice to pay the mortgage regularly, this bunch of @rseholes aren't worth working for, given a choice.
Do please tell where? My impression is that there aren't any pilots' jobs on offer at the moment. If you know differently, I'd love, I say I'd love to know.
Whilst it's nice to pay the mortgage regularly, this bunch of @rseholes aren't worth working for, given a choice.
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I think your subject for this is slightly off as the person in the interview clearly states that they have no intention of going down the no-frills route a la easyJet & go. What it clearly does state is that they are looking at lowering their cost base.
Low cost does not equal no frills!
It's All A Swizz......
(edit for typo)
[ 11 November 2001: Message edited by: swizzle stick ]
Low cost does not equal no frills!
It's All A Swizz......
(edit for typo)
[ 11 November 2001: Message edited by: swizzle stick ]
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I think this is part of an overall industry push to cut costs, it happens in most industries when their are more staff than jobs, unfortunately.
Bit of a mis leading title to this thread, as they have said quite explicitly that they DO NOT WISH TO BECOME A NO-FRILLS LOW COST AIRLINE LIKE EASYJET OR GO.
The industry is having a bad time, cost cutting is inevitable. But don't forget the talk will be to investors, so it's pretty much what they need (want?) to hear.
Swizzle, I was typing as you posted, I'm not copying (honest).
Fred, you made me chuckle.
[ 11 November 2001: Message edited by: flypastpastfast ]
Bit of a mis leading title to this thread, as they have said quite explicitly that they DO NOT WISH TO BECOME A NO-FRILLS LOW COST AIRLINE LIKE EASYJET OR GO.
The industry is having a bad time, cost cutting is inevitable. But don't forget the talk will be to investors, so it's pretty much what they need (want?) to hear.
Swizzle, I was typing as you posted, I'm not copying (honest).
Fred, you made me chuckle.
[ 11 November 2001: Message edited by: flypastpastfast ]
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The title in Sunday Business is
BMI to reinvent itself as low-cost, no-frills airline
the articles between ananova and the newspaper have a few differences
"Reid is aiming to emulate carriers such as Ryanair and Easyjet by intensifying services on profitable short haul routes, driving down employment costs and using planes for longer."
BMI profitable routes are GLA, EDI, DUB, AMS.
Frequently would rise on these routes. Unprofitable routes cut.
A removal of BMI services to the US from MAN was ruled out.
Sorry I don`t know how to get the newpaper article on to pprune other that type the whole thing. Its more detailed (and longer) in the paper than ananova.
BMI to reinvent itself as low-cost, no-frills airline
the articles between ananova and the newspaper have a few differences
"Reid is aiming to emulate carriers such as Ryanair and Easyjet by intensifying services on profitable short haul routes, driving down employment costs and using planes for longer."
BMI profitable routes are GLA, EDI, DUB, AMS.
Frequently would rise on these routes. Unprofitable routes cut.
A removal of BMI services to the US from MAN was ruled out.
Sorry I don`t know how to get the newpaper article on to pprune other that type the whole thing. Its more detailed (and longer) in the paper than ananova.
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Hmmm. Well, you can't do 'low cost' from a hub because the fixed costs are too great. E.G. turnround times, airborne holding, real estate and Union agreements that are, contractually, longstanding. It is also difficult to emulate the punctuality of quieter airfields.
If you want to do low cost then it must be important to compete at the outset rather than adust the business plan in the economic downturn of the cycle.
So, whats it all about?
Its difficult to cut a profit when people don't fly after a terrorist scare. So lets aggressively cut costs.
How?
Well, get the whole company behind you with inspirational management and a cast iron deal that will give employees a share of the profits when the business turns around.
Likely?
No.
Why?
Because this company suffers from remote management and some appalling labour relations which will make it nigh on impossible to carry the staff with the change.
If you want to do low cost then it must be important to compete at the outset rather than adust the business plan in the economic downturn of the cycle.
So, whats it all about?
Its difficult to cut a profit when people don't fly after a terrorist scare. So lets aggressively cut costs.
How?
Well, get the whole company behind you with inspirational management and a cast iron deal that will give employees a share of the profits when the business turns around.
Likely?
No.
Why?
Because this company suffers from remote management and some appalling labour relations which will make it nigh on impossible to carry the staff with the change.
From Yahoo business news;
- BMI British Midland Airways has denied that there are any plans to reinvent the airline as a low-cost operator such as easyJet and Ryanair.
The Sunday Business newspaper had reported that group Chief Executive Austin Reid would signal the move at a conference on Monday, building up profitable routes to places like Amsterdam, Dublin and Glasgow at the expense of other routes.
In an interview with the paper Reid said: "With the low-cost industry banging the drum about 10 pound fares, there is something inherently wrong about someone charging 550 pound return to Zurich. What has got to change is all related to a change in the cost base."
However, a spokeswoman for the airline said on Sunday that Reid's comments had been misinterpreted. She said the review was part of a restructuring announced back in July to look at reducing costs.
"We are not relaunching ourselves as a low cost carrier," she said. "We are looking at our cost base in terms of airport costs, pilot costs and aircraft costs so we can offer more competitive prices."
In October BMI was forced to cut flights and slash jobs because of falling demand for air travel in the wake of the attacks on the U.S. in September.
The spokeswoman said the airline had witnessed more and more business traffic turning to economy and their aim was to compete more effectively for that business.
- BMI British Midland Airways has denied that there are any plans to reinvent the airline as a low-cost operator such as easyJet and Ryanair.
The Sunday Business newspaper had reported that group Chief Executive Austin Reid would signal the move at a conference on Monday, building up profitable routes to places like Amsterdam, Dublin and Glasgow at the expense of other routes.
In an interview with the paper Reid said: "With the low-cost industry banging the drum about 10 pound fares, there is something inherently wrong about someone charging 550 pound return to Zurich. What has got to change is all related to a change in the cost base."
However, a spokeswoman for the airline said on Sunday that Reid's comments had been misinterpreted. She said the review was part of a restructuring announced back in July to look at reducing costs.
"We are not relaunching ourselves as a low cost carrier," she said. "We are looking at our cost base in terms of airport costs, pilot costs and aircraft costs so we can offer more competitive prices."
In October BMI was forced to cut flights and slash jobs because of falling demand for air travel in the wake of the attacks on the U.S. in September.
The spokeswoman said the airline had witnessed more and more business traffic turning to economy and their aim was to compete more effectively for that business.
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Does cost cutting include dumping the pilot's agreement for service, not allowing them to request a day off to fall on a day that they have a wedding or birthday to attend, cutting days off a month by 3 days, stopping the block window roster protection?
Stopping the final salary pension also?
Things will get better, sure, but when they do, how long to fight for these lifestyle agreements to get given back? 8 years again? And that was just for 1 day off!
Other jobs will be advertised in time, consider them.
[ 12 November 2001: Message edited by: thegirth ]
Stopping the final salary pension also?
Things will get better, sure, but when they do, how long to fight for these lifestyle agreements to get given back? 8 years again? And that was just for 1 day off!
Other jobs will be advertised in time, consider them.
[ 12 November 2001: Message edited by: thegirth ]
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75hrs a month blocks hmm nice, there are fo,s in EMA that go to bed at night dreaming of that amount of flying,about 35hrs is a good month!! Under utilisation springs quickly to mind.
75hrs a month blocks hmm nice, there are fo,s in EMA that go to bed at night dreaming of that amount of flying,about 35hrs is a good month!! Under utilisation springs quickly to mind.
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Not sure what to make of this at the moment, might be a blessing in disguise.
What happens to the Star Alliance and also to the Long Haul, are we going to be a low cost Long Haul airline!!!!
As ref 35 hr month, I dont even fly that many hrs a month, back to the winter of 1999, F!!K All flying for F/O's on the Fokker Fleet I suspect.
What happens to the Star Alliance and also to the Long Haul, are we going to be a low cost Long Haul airline!!!!
As ref 35 hr month, I dont even fly that many hrs a month, back to the winter of 1999, F!!K All flying for F/O's on the Fokker Fleet I suspect.
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As I have said guys, it sure is nice to have a job and all what comes with it, but too much is too much you see! I remember that when i first had a job I said to meself: hey, I can fly 70 hrs this month, this is really good for my logbook. However, I quickly found out that it is not so good for my health...
A lot of companies prefer to have their flight crews fly up to or even more then the maximum allowed monthly flight hours iso looking for extra guys (and girls), because it is cheaper. They prefer paying some overtime iso spending 30,000 euro on a new type rating.
A lot of companies prefer to have their flight crews fly up to or even more then the maximum allowed monthly flight hours iso looking for extra guys (and girls), because it is cheaper. They prefer paying some overtime iso spending 30,000 euro on a new type rating.
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Was just confirmed on Bloomberg that BMI will not be a nofrill airline. To be honest after this weekend I am non plussed. I have flown as SLF for 2 years everytime in Business. This weekend I met up with some friends in Cannes, flying to Nice on Friday morning and coming back on Sunday morning. I got an exit seat (row 9) and the pasta meal was better than the scones and bagels I have been eating for so long. I paid 118 pounds, less than half of what i would pay for C, and I had more legroom.
I would suggest that BA and BMI start beng nice to each other. BA doesnt want the local and europe network. Both have their hands full with easyjet and co, it would be a natrual progession for BMI to fill seats supplyng passengers from the regons for LHR. Heck all it would really take is the signng up of other arlines into the FF program (JAL, AA, Cathay, Quantus)
I would suggest that BA and BMI start beng nice to each other. BA doesnt want the local and europe network. Both have their hands full with easyjet and co, it would be a natrual progession for BMI to fill seats supplyng passengers from the regons for LHR. Heck all it would really take is the signng up of other arlines into the FF program (JAL, AA, Cathay, Quantus)
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From the bmi web site.
bmi CEO says UK airlines will need to reinvent themselves
bmi CEO Austin Reid has told delegates at the Institute of Economic Affairs Ninth Annual Conference in London that airlines will need to reinvent themselves by examining closely the financial models on which they operate.
Austin Reid said:
“For the past 2 months in particular the whole of the world’s airline industry has been looking carefully at its future and how it can operate successfully.
“Success will come through stronger competition facilitated by reduced levels of regulation. By reducing costs airline operators will create environments where they can prosper. In particular close examination is needed in costs relating to labour, aeroplane manufacturers and airports. Success will also be brought about by improved sales distribution channels, productivity and network alliances.
“bmi remains and will continue to remain a full service airline and we have no intention to become a budget carrier. We pride ourselves on the quality of our service.
“However, it is vital that if we are to survive in the current climate we have to continually examine the cost of the operation as a whole. We will be applying low cost principles to our business, both long and short haul, as we see this as the way forward for the UK, and indeed, global airline industry.”
bmi CEO Austin Reid has told delegates at the Institute of Economic Affairs Ninth Annual Conference in London that airlines will need to reinvent themselves by examining closely the financial models on which they operate.
Austin Reid said:
“For the past 2 months in particular the whole of the world’s airline industry has been looking carefully at its future and how it can operate successfully.
“Success will come through stronger competition facilitated by reduced levels of regulation. By reducing costs airline operators will create environments where they can prosper. In particular close examination is needed in costs relating to labour, aeroplane manufacturers and airports. Success will also be brought about by improved sales distribution channels, productivity and network alliances.
“bmi remains and will continue to remain a full service airline and we have no intention to become a budget carrier. We pride ourselves on the quality of our service.
“However, it is vital that if we are to survive in the current climate we have to continually examine the cost of the operation as a whole. We will be applying low cost principles to our business, both long and short haul, as we see this as the way forward for the UK, and indeed, global airline industry.”
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V50 sorry mate but there are no ewes in QANTAS, and bmi and BA are in different alliances so it is unlikely that they would cooperate on any regional deals in teh near future. As far as the food goes it is a bit hit or miss, well mostly miss, and the company pay a fortune for it.
bmir don't have any life style parts in the MOU so we can be flogged to death if need be. Double the productivity of the FO's would mean some of them flying 10 hours a month.
P and FE do you guys work for bmi or are you going into production on a new soap/comedy program.
Floggings will continue until moral improves.
bmir don't have any life style parts in the MOU so we can be flogged to death if need be. Double the productivity of the FO's would mean some of them flying 10 hours a month.
P and FE do you guys work for bmi or are you going into production on a new soap/comedy program.
Floggings will continue until moral improves.
