BMIs new strategy fails- passengers numbers plummet!

i think it means….the two foreign investors, i.e. SAS and Lufthansa cant colaberate and outvote the main shareholder. Only a hyperthetical answer

I assume the main shareholder is Sir Michael Bishop?

Aw, go on Spence. Ask! lol.

1L.

oaky dokey I won’t ask what that means lol

Er I thought some rich private investor owns just over 50% of bmi, so either Lufthansa or SAS owns less than you’ve just quoted.

You’re both right…

Owner Shareholding
BBW 50% plus one share
Lufthansa 30% minus one share
SAS 20%

Er I thought some rich private investor owns just over 50% of bmi, so either Lufthansa or SAS owns less than you’ve just quoted.

Never mind lose money – bmi are haemoraging cash at the moment.

Which wont please the shareholders, Lufthansa 30% and SAS 20% especially with the latter, as they are losing cash like BMI. And if BMI needs to come round with the begging bowl?

I don’t think they’ve thought of mainline as being the back-bone of the business for a long time now.

Its a well known fact the bmibaby is the only thing keeping the group afloat and has been for quite a while.

We can only hope they come to their senses and remember what gave them a good name in the first place!

Never mind lose money – bmi are haemoraging cash at the moment.

With the current chief exec I don’t think we’re going to see much change for the better. This whole strategy of ditching full service and intertwining baby fares was his idea. And from what he says in the article, I don’t think he’s going to change it back. He talks about “the new strategy” like its all going to plan and this is want they want. I doubt it is, but if he recognised that it was going so badly that it was causing serious harm surely he’d revert back to the old way. In fairness, bmibaby from their original bases have sorted themselves out. The fares are low cost now, and although not perfect, delays have been brought down. They also seem to be more committed to developing existing bases than previously, as demonstrated by the expansion at CWL this summer, which has been neglected over the past 18 months. The problem now lies with bmi mainline, which is the backbone of the business. With rising fuel costs and cut throught competition, bmi can’t afford to lose passneger numbers like this, as eventually they will start to lose money. Either they sort themselves out quickly, or they could be heading down. I can see a market floatation within the next 3 years, if only to raise cash to save the company if things get bad.

Some very valid points here.

I think bmi have been reeling from one disaster to another recently. Don’t forget though… they’re known for changing their minds frequently so I wouldn’t think it will be long before we see a total u-turn again on the LHR service and introduction of baby fares.

Sounds like the long-haul service, which used to be top-knotch has gone down the pan too, what with the introduction of the 757, now the 767, paying for drinks etc. Its not what they were known for.

Ever since I was involved with the launch of bmibaby, the “keep the passengers seperate from mainline” concept hasn’t worked. Customers will call any number and stand in any queue possible, yet if they were baby customers they would get short shrift if they were in the wrong place!

Maybe a little rebranding all round might do the trick?

I think bmi went down the pan when they phased out inflight service. What was a real pain was that there was no noticeable difference in their fares. And not too long afterwards, they announced that long-haul service would be changing, too, by charging for some beverages on all flights.

It appears that British Airways have the right idea based on what we’ve just heard from OneLeft.

But the only difference with BA Connect is that you don’t get fed, but so many forum members have already commented on amazingly cheap flights they have secured with the airline. With online and self check-in available, it seems that BA Connect is one low cost carrier to fly with.

Develop 2 individual brands so people can distinguish the two (

That’s a good point. When I was queueing at bmi check-in in GLA the 3 people in front of me were all travelling on a baby flight and had to be sent to the seperate baby (handling agent) check-in desks, so clearly they weren’t sure who they were flying with. Probably made worse by being able to book both airlines though each others websites.

1L.

bmi are now full service on regional and (mainly) loco at LHR. BA are loco on regional and full service at LHR. Which do you guys thinks is most likely to work as a strategy

In my own humble opinion, ive never run an airline,but i do own a business..But i think BA has the correct strategy with Premium BA at LHR and BA Connect at the regional airports.

As i said in my previous post

Dump the longhaul-use the star alliance members who have better experiance at longhaul to codeshare
Get BMI mainline back into heathrow, with food,papers and Diamond class
Get baby out of Heathrow and move it into the reginals where it seems to be holding its own
Develop 2 individual brands so people can distinguish the two (i believe Virgin are having problems in Oz as people cant distinguish VirginBlue LOCO from Virgin Atlantic on Hong Kong-Sydney Flights)

I’ve just flown bmi twice in 2 days for the first time in years, last time they still had Diamond Service.

On the whole it was good, although I couldn’t believe how quiet the flights were. No more than 20 on the LHR GLA yesterday and I would guess about 80 today coming back, but that was 2 flights combined as the previous one was cancelled and included at least 12 staff passengers that I spotted. Ironically I used bmi both ways as our flight were completely full.

It seemed a little odd to be given complimentary newspapers on a loco. Food and drink choice not good and expensive for very poor quality (almost inedible) sandwiches, but the aircraft was pristine and crews great.

One thing did occur to me…

bmi are now full service on regional and (mainly) loco at LHR. BA are loco on regional and full service at LHR. Which do you guys thinks is most likely to work as a strategy?

1L.

Exactly – but it will certainly take time to restore customer confidence in the brand: a real test of bmi’s bouncebackability! (:))

It seems that BMI has to got to get back to what it was good at… Short haul routes around europe, it proved it could operate bucket and spade flights along side business routes..
Dump the long haul stuff, they should leave that to other Star Alliance partners..Keep BMI baby, but dont confuse your customers over brand awareness. Keep Baby at reginal airports and out of heathrow..

It’s sad – but inevitable – for one thing most people don’t know what bmi stands for:
Low fares?
Full service?
Long Haul?
Short Haul?
Fully fledged LOCO?

They restructured their pricing just again before or after Christmas and it has gone a bit downhill since then. They have increased Taxes and Charges on their Belfast City route which now stands are £52 taxes and charges. They also have business restricted cheaper than premium economy which is mad as you get food in business and bigger seat but in premium all you get is less miles and a economy seat and no food. Why bother paying £10 extra each way!!!

They need to drop their fares again as they are hitting the previous prices before loco but without food given out onboard!

They are loosing leisure pax on BHD route as prices are unaffordable compared to the fares of £45-50 including tax when tiny was introduced!