BD Low Cost ex EMA!
 

Just heard on Breakfast on Beeb 1 that the above is to be announced today....any insider info on this?

BM has several applications in to serve BSL, BUD, GVA, PRG, ZRH, WAW ex EMA.

Well actually the story was that BMI would announce the name and details of its new low cost brand next week... <img src="rolleyes.gif" border="0">

For a large thread on Go, BMI and EMA see:

<a href="http://www.pprune.org/ubb/NonCGI/ultimatebb.php?ubb=get_topic&f=1&t=017290" target="_blank">http://www.pprune.org/ubb/NonCGI/ultimatebb.php?ubb=get_topic&f=1&t=017290</a>


I thought a low cost airline needed minimal overheads, usually start with a clean sheet of paper and are run with ruthless cost control. Now unless old Michael Bishop is going to sell The Hall, sack every other manager and renegotiate his operational staffs terms & conditions then I for one will view this announcement as nothing more than a panic response to the arrival of a proper low cost airline.

Or are BMI just planning to paint yet another livery, think of a snazzy web address and take the catering off their aircraft and call it "A new low cost airline"?

Will this purportedly 'new' airline be propped up by its big brother? People accused GO of being BA's spoke in easyJets wheel and thought it unfair. Will they say the same again. I think so - and - with more good reason.

I wonder if BA will do the same thing at Gatwick what with Stelios parking his tanks on their lawn. Standby for the launch of GoII or perhaps 'GO Again' <img src="wink.gif" border="0">

My fervent hope is that BMI do not use this 'new' airline to make Go's new base a financial liability forcing them to close it. If that happened I bet my two front teeth that BMI's 'new' low cost division would be wound up within a month.

Mind you isn't competition great? The Midlands waits years for a low cost airline. Then it get two within a month!

PS

bmi British Midland will launch a new low cost no frills operation with a seperate name and corporate ID on the 23rd March. As yet it has no name but expected to be 'christened' next week.
It will be operating 733's from EMA to Barcelona, Faro, Palma, Nice, Alicante and Malaga. Fares will begin at £25 .

Will this operation have any bearing on the future of the Fokker fleet and regionals at EMA?

This has just been released:


bmi british midland announces the launch of a new no frills airline

- major European network based at East Midlands Airport -

- services to start 23 March 2002


bmi british midland today announced a major initiative launching a new no frills airline based at East Midlands Airport. The new airline will have a separate name and corporate identity from bmi british midland, which will continue to operate and develop as a full service international scheduled carrier.

The new airline will fly a dedicated fleet of Boeing 737 - 300 aircraft and serve an extensive range of key leisure destinations from East Midlands Airport, including high frequency services to Barcelona, Nice, Palma, Malaga, Faro and Alicante. Services will commence on March 23rd – a week before the Easter Bank Holiday weekend.

Frequencies and further routes will be announced shortly, together with full details of the new airline’s internet prices, which will start at £25 each way, and details of an exciting introductory offer when flights are open for sale later this month.

The airline, whose name and corporate identity will be announced next week, will have a strong focus on giving passengers value for money. Fares will be highly competitive with additional savings available for tickets booked via the internet.


cont’d

bmi british midland announces the launch of a new no frills airline
Page 2 of 2. 10 January 2002

Nigel Turner, bmi’s director responsible for the new airline, said:

“bmi is launching this new airline in response to a clear market opportunity and consumer demand. We have been operating from East Midlands Airport for over 35 years and we are delighted to increase our commitment to the Airport and the region through the creation of this new no frills carrier.

“The new airline is an independent and valuable addition to the bmi family and we believe it will have a long and successful future.

“With the launch of this new airline, bmi will have a strong presence in both the no frills and full service airline sectors.”

ends

Where are these 737's coming from? Have they pulled capacity elsewhere in the network? I presume they'll be ending existing services from EMA to planned destinations.

Looks like Go has got a few people worried at BMI!!

unless they start a fresh and start hunting for decent 733's..
if they started transferring aircraft / crew / contracts from BMI mainline they will struggle to get there cost base low enough to make money on the fares they say they will be charging...

a flying date of March seems very soon for a whole new airline to be up and running by.

IMHO, this seems to be a knee jerk reaction and a year down the line they will have lost a lot of money from trying to stop Go rather than concentrating on their core business which is at the higher end of the market...

the midlands is underserved, and passenegrs will want to fly with low cost carriers from this area, but its no good having them if you are making a loss on every one you fly as you cant get your costs low enough...

I'd be interested to see who's bankrolling this. Surely not Star alliance!

Have BMI got enough flightdeck for this venture or will they need to recruit?

All smells like Buzz to me, spare KLMuk aircraft painted yellow and presto new airline. Its all getting so unoriginal ! <img src="redface.gif" border="0">

Good competition is good news for the pax and the industry..

All in all, a step in the right direction..

On Go's website:

Go's response to bmi - 10 January

Bmi's announcement to set up a low cost airline shows an airline in disarray. They can't decide whether to be full service or no frills which is a recipe for commercial disaster. This tactic was tried many times in the US and failed every time. It's a sign of a panic-stricken management that knows it's been ripping people off for years. Not surprising when they've been charging people fares like £900 to fly to Nice.

Go's plans for the Midlands remain unchanged. We have a track record of success in bringing low fares to London and Bristol. You can be sure that day-in-day-out Go's prices will not be beaten.

no, web / phone and travel agents will not be a first,
Go currently offers all these sales channels plus booking on dgital TV. in addition to the facility for tour operators to book free sell seats.

there announcement that they dont look to expand from EMA seems a bit strange, surely the plan of most airlines is to start form one place, and when succesful expand to other areas that are underserved and increase your success.. one base, one set of eggs, one basket....oh well, lets wait and see...

737 'fleet' is apparently 2 a/c. Shouldnt be too hard to source at the mo.

I like the Orangeman's Answer from LTN

10 January 2002
BMI launches Buzz 2

easyJet response to BMI announcement.

BMI British Midland has today announced that it is setting up a new low-cost airline at East
Midlands Airport, its principal UK operating base after Heathrow.

While it is likely to prove entertaining to watch Go and BMI cut each other's throats at East
Midlands, it seems that BMI forgot to get the history books out.

No high-cost carrier has succesfully transitioned part of its business into a succesful
low-cost airline. Many have tried: Continental Lite, Shuttle by United, Buzz (from KLM). All
have failed.

When BMI sells its 18th Century stately home HQ at Donington Hall and moves to a cheap tin shed at East Midlands Airport we'll know they are serious about the low-cost airline business.

I also know of Fokker Drivers based at bmi/EMA who would prefer to go back to 737 fleet and FLY rather than "Upgrade" to the Bus.

Note the routes! Only Alicante and BCN are new. FAO, AGP, NCE, PMI are already operated by bmi from EMA and usually Fokker operated. High frequency, always were for summer season.
They are just moving their leisure routes to a low-cost divison.
Which makes me wonder regarding LHR leisure routes PMI, NCE and possibly DUB/BFS (low yield routes) will they go over to the low-cost side?

This new airline is in response to Go moving in at EMA, the bmi sacred airport.

Most importantly though does this mean a reprieve for some of the 109 redundancies?

If this saves a few jobs it has to be welcome.

With regards to the 18th century stately home, I was under the impression that it was purchased many years ago for pennies, and now effectively costs bmi absolutely zip, apart from a large heating bill. So I suspect a portacabin on the airfield would cost more.

Fortunatly I dont have GO's web site bookmarked, as it would appear to be spewing a lot of childish crap out at present. They don't appear to understand that objecting to someones route application is not exactly unusual, as they have done so in the past. However as reported on another thread they posted more moronic diatribe on their web site.

Me thinks this is all good healthy competition and good news for the midlands in general.

Where are these 737-300's coming from? I can't work out what they are dropping to fly these routes

Here, here wooof. You are correct re. the aforementioned stately hall - it costs the company next to nothing. Other respondents should not let their prejudices and preconceptions get the better of them. bmi may be a little slow off the mark responding to the competition from the lower cost carriers - but respond it will and the East Midlands population will be the beneficiary of the extra competition and perhaps some new routes. More airlines, more choice, more aircraft, more jobs for those that desperately need them - sounds OK to me.