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bmi regional announces low fares and significant expansion ex EMA

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Old 25th Feb 2002, 21:16
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Post bmi regional announces low fares and significant expansion ex EMA

It seems that bmi's creation of bmibaby in the battle with Go was not the end of things as they have today announced a significant increase in services on the existing bmi regional network, as well as slashing fares.

From the bmi website:

bmi regional announces major network expansion and new low fares

. .62 extra flights a week to and from the Midlands region by home carrier

attractive new pricing structure with fares from just £38 return

From 31 March 2002, travellers in the East Midlands will be able to take advantage of an additional 62 flights a week. These increased frequencies will allow bmi regional to offer a more comprehensive service to both business and leisure travellers, who need the flexibility and frequency to travel within the UK and Europe.

Ahead of the massive increase in the number of flights, bmi regional is also introducing an attractive new pricing structure to help give real value for money fares, designed at attracting both the business and leisure traveller. The new structure gives customers the flexibility to book outbound and return flights at the lowest available fare level, with all bookings now based on an each way fare. This means that customers now have the opportunity to benefit from the lowest fare available on both their outbound and return flight. bmi has also simplified the booking terms and conditions offering greater flexibility to the customer if changes need to be made after a booking has been made.

bmi regional will offer return fares from East Midlands to: Belfast, Edinburgh and Glasgow from £38; Amsterdam from £63, Paris Charles de Gaulle from £73 and Brussels from £84. Tickets at the new fare levels will be available for purchase from 26 February 2002 for travel from the 16 March 2002 onwards.

Additional services from East Midlands Airport will include:. .• East Midlands to Glasgow - an increase from four to five return flights a day Monday to Friday, and from one to two on a Sunday.. .• East Midlands to Edinburgh – an increase from three to four return flights a day Monday to Friday, providing an extra early morning departure, and from one to two on Sunday.. .• East Midlands to Belfast City – an increase from three to five return flights a day Monday to Friday, with an extra flight on Saturday and Sunday.. .• East Midlands to Amsterdam – an increase from three to four return flights a day and from two to three on a Sunday.. .• East Midlands to Paris – an increase from one to two return flights on a Sunday evening.

Austin Reid, chief executive officer, bmi said:

“ We have been working on a new business model for some months now, to help ensure that we can maintain a competitive edge in a challenging market. This massive increase in flights yet again reinforces our long standing and very clear commitment to the region and our continued drive to provide customers with a wide range of destinations, coupled with a high level of frequency and of course at an attractive price.”

notes to editors. .1. bmi regional will operate a total of 290 services a week to and from East Midlands Airport from 31 March 2002.. .2.From 20 March 2002, bmibaby (the new no frills airline of bmi) will operate an additional 60 flights a week from East Midlands Airport to Barcelona, Dublin, Faro, Malaga, Murcia (Alicante), Nice, Palma and Prague.. .3.Fares quoted are internet based fares, which are £5.00 less than booking via reservations. All fares quoted include tax, passenger service charge and surcharge.. .4.As part of the route network rationalisation, services from East Midlands to Frankfurt will be suspended from 3 March 2002. Since the start of this service in November 1999, the route has been unable to generate the required revenue levels to sustain a viable operation.

. .ES <img src="wink.gif" border="0">
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Old 25th Feb 2002, 21:26
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So is the Manch-USA operation going to continue in light of not getting USA-LHR operations again?
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Old 25th Feb 2002, 21:29
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Will this create any new jobs after those laid off are brought back into the fold?
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Old 25th Feb 2002, 21:57
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Meeb,

This is bmi regional, ex business air, midland commuter, and NOT bmi.

Regional may well take on some of those shed from bmi, but on much worse pay and conditions. There is/was a transfer scheme, but it's only one way.

I would suspect that this was the management plan all along.
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Old 25th Feb 2002, 22:02
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Well all the talk says that the US flights are losing the company a fortune. To be honest I dont see how when we carry 15000kg of cargo per flight and the pax loads are easily staying above 150 ish.

. .Who knows? Watch this space
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Old 25th Feb 2002, 22:02
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Well all the talk says that the US flights are losing the company a fortune. To be honest I dont see how when we carry 15000kg of cargo per flight and the pax loads are easily staying above 150 ish.

. .Who knows? Watch this space
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Old 25th Feb 2002, 22:40
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Hmm. So BMI - a full service airline - is going to offer a low cost airline price. Without rebranding, without new terms and conditions for their crews, without reconfiguring the aircraft and without slashing their management cost base.

In addition they are going to offer higher frequency on their existing routes thus diluting their customer base with more seats and increasing their costs.

They intend to retain their business customers at the same time as attracting price sensitive new customers. They will therefore retain high service levels, codeshare, through ticketing, executive lounges, full service catering, airbridge boarding and allocated seating in a split service cabin.

This is all being done in "competition" with their own in-house low cost airline BeMyBaby who is trying to establish its brand and customer base in an already maturing market against a low cost airline with 4 years head start. This new airline consisting of only 2 aircraft operating 90% of routes already served by a competing low cost airline (Go).

Not one reduction in head count or fixed cost has been announced in conjunction with todays statement.

Now does this sound like a compelling business proposition to you? Me neither.

Either Sir Mike is following a well trod path of trying to win a money bleeding competition with any airline trying to establish at EMA. Or. Wrong footed by the collapse of the transatlantic global business travel market that BMI had been shrewdly chasing until Sept 11th - they have cobbled together this "move" into the low cost sector.

I'm sure BMI/BeMyBaby will hurt Go and Go with hurt them back. For my money the airline drafted from a blank sheet of paper 4 years ago to be low cost/low overhead will be the winner as they can break even whilst the other looses money every day. The Pax will be a winner which is great in the long run.

. .I wonder what will happen to BHX with their quite pricey, BA/AL/BE/BACE/Maersk main players..? Its . .only 40 mins 'round the M42/1.

Who thinks EMA might be the fastest growing airport in 2 years time rather than EDI/STN?

PeterS
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Old 25th Feb 2002, 23:09
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Peter,

. .I think BMIBABY is a rebranded version of BMI.

Given that it will serve primarily leisure destinations (excluding Dublin) like an IT charter, I am sure passengers will not be too confused when given nuts and water vs. normal service.

As far as cost structure is concerned, I doubt it will be tweaked much. No doubt it should - either that or ensure higher aircraft utilization/frequencies somehow to reduce unit costs.

Should be interesting to watch as GO, the traditional charters and possibly Ryanair also stir-up the hornet's nest. I am sure the local ATC will be ramping up as well.

. .Cheers
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Old 26th Feb 2002, 01:21
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Arkroyal. . .Cannot see regional taking any guys from bmi. extra routes will be taken up by the slack on the 145 fleet, the Fokker fleet which was handed over to regional last year (or rather the ops.part) and three 146's that are currently at EMA and MAN. The MAN-BRU has been cancelled and the a/c designated a stanby machine. Any extra 146 crews would probably come from the 45 made redundant.
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Old 26th Feb 2002, 01:41
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PS

[quote] Hmm. So BMI - a full service airline - is going to offer a low cost airline price. Without rebranding, without new terms and conditions for their crews, without reconfiguring the aircraft and without slashing their management cost base. <hr></blockquote>

But they are offering new terms and conditions, by moving bmi out and bmir in.
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Old 26th Feb 2002, 01:55
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Hmmm.. 38 quid return EDI to east Midlands, and that includes taxes/charges. That is seriously cheap.

Short term the punters gain, long term no matter who wins, East Midlands gains. Just what that region needs.
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Old 26th Feb 2002, 14:21
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.....but will BMir HQ move South to EMA from the dark corner of ABZ ?? Me thinks not <img src="confused.gif" border="0">
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Old 26th Feb 2002, 14:43
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As one of the 45 who got made redundant, this is good news.. .BMIR has a lower cost base than BMI and greater utilisation of crews and aircraft will mean even lower costs.

I'll be at home if anyone wants me!
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Old 26th Feb 2002, 18:56
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Can't see bmir HQ moving south.

146Luke .... good luck .. hope you get the call!

ES <img src="wink.gif" border="0">
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Old 26th Feb 2002, 19:53
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at the moment it looks like the returning 145 thats been on Dus duties will take up the slack at EMA, as a whole bmir(145)s are about one aircraft overcrewed at present and the opinion is that no new 145,s this year or at best not till last quarter.Who knows for sure things are changing so fast around here
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Old 26th Feb 2002, 20:29
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Interesting that the pencil jet has proven once again not up to the job.

BHX-BRU, going nicely with F70, replace with E145, dead in a few months

MAN-DUS going nicely with F70, replace with E145, dead in a few months

A pattern begins to emerge.
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Old 26th Feb 2002, 20:47
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You win some, you lose some. I think the pencil jet on certain routes is a dud.

Roll out the 146 again and 146Luke and I can once again go flying together, if BMIR is really interested in having its laid-off crews back.

Come on, Bill, gizza job!!!
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Old 26th Feb 2002, 21:01
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Slots for the MAN-BRU/DUS finish at the end of March. LH are to take over DUS once again.
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Old 26th Feb 2002, 21:41
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if the F70,s are so good why are bmi so eager to get rid?. .I wondered how long it would take for this to rear its ugly head on this topic of otherwise good and interesting news
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