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September 2022, Virtual
September 29 2022, Virtual
bmi reported pre-tax profits of Â£29.7m for 2006, a rise of 197% on the result for 2005.The second largest carrier at Heathrow also reported a 4.2% rise in turnover from Â£869m in 2005 to Â£905.4m in 2006 and an 85.5% rise in operating profits from Â£5.5m in 2005 to Â£10.2m last year.The returns make the carrier, which has the second largest number of slots at Heathrow, likely to be a more expensive proposition for any would be purchaser.Lufthansa has already indicated it would be prepared to make a bid if bmi's chairman and majority stake holder Sir Michael Bishop were ready to sell.bmi's figures present a good picture for the airline. Cash in hand is up 8.8% to Â£156m while its debt has dropped by 33.3% from Â£85.8m to Â£57.2m.Sir Michael described the figures as "an excellent set of results" which had been achieved in "extremely difficult operating conditions."He cited the major disruptions at Heathrow in August and December which cost the carrier Â£19m in lost revenue.During the year bmi also acquired British Mediterranean from BA which will be used to expand the carrier's medium haul market.Sir Michael said the new EU-US Open Skies agreement would also enable it to start transatlantic operations next March from Heathrow.Lufthansa's chief financial officer Stephan Gemkow said the Open Skies agreement, which will free up flight between Europe and the US, made his airline's 30% stake in bmi a better holding.The German carrier indicated two years ago, when there was no such deal and bmi was losing money, that it would be happy to sell this holding.But Mr Gemkow said this week he would look at any offer by Sir Michael to sell his 51% stake.Sir Michael has so far indicated he has no plans to sell.
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