UK carrier bmi has posted a sparkling set of results today (2 May) as it ramps up activity ahead of next year”s open skies deal that will allow it to operate Transatlantic services for the first time.
Bmi chairman Sir Michael Bishop (pictured), unveiled the results at a London press conference that saw pre-tax profits leap 197% from ”10m ($20m) to ”29.7m on turnover of ”905.4m, itself up 4.2%.
And the results would have been even more impressive had the airline not been hit by the dual impact of last year”s security scare at Heathrow and significant fog disruption in December that it estimates sliced ”10m from revenues.
Specifically, operating profits rose 85.5% to ”10.2m and overall load factor increased 0.7 points to 71.7%, although passengers carried remained static at 10.5m.
Recent news that the long awaited open skies deal had finally been agreed between the US and European Union also came as a welcome, but a surprising fillip to Bishop.
”The decision to accept open skies came out of clear blue skies,” Bishop said, adding: ”We intend to take up routes to the US in March next year and we are determined to do it.
”The situation has changed significantly and we are surprised at the number of aircraft that can be made available next spring while we will announce that [aircraft details] in the third quarter of this year. These will be incremental services to the US, not a big bang, as it will be for all airlines.”
Bishop also revealed that bmi was enjoying something of a honeymoon period following the demise of regional operator BA connect, that has now been absorbed into Flybe. Bmi he said was taking ”significant market share” on the regional front through its subsidiary operations, bmi regional and bmibaby as Flybe reorganises and assimilates the sizeable BA company.
Bishop”s airline, the second largest carrier out of Heathrow behind BA, is itself absorbing a large amount of aircraft and routes, following its acquisition of British Mediterranean (BMED), increasing its medium haul services from one (Moscow) to 18, including much of the near and Middle East.
And bmi CEO Nigel Turner also outlined plans for business travellers, particularly on UK domestic routes where easyJet has also recently made inroads with its own low cost business proposition.
”We are including the business traveller with bmibaby and offering them the bmi diamond scheme to cover the Star Alliance network,” said Turner, adding: ”Our competitors don”t even come close to that and the BA frequent flier will be quite attracted to it.”
Turner”s boss also had some strong views on the green vogue currently sweeping the UK. ”You should remember one thing,” he said. ”People do actually like flying ” just look at the industry growth.
”As a sector, perhaps we have not presented well enough to the public about how we have improved our efficiency. The public has been given many exaggerated facts about airlines but I don”t think this will curtail the natural growth of this industry.”
Bishop also dismissed reports of other carriers being interested in bmi as "figments of a journalist's imagination. No such opportunity has arisen."