bmi regional

[Aceshigh]

Maybe JET2 was a poor example
So how about say EZY ?
Plenty business traffic on those routes from the UK to Europe and expanding.

There was actually an EU directive sneaked out over the week end that there would be zero change to flights or the moment of good on march29th so blaming BREXIT really is a kop out for a strategy that simply didn't work.

 

[Land23R]

There was actually an EU directive sneaked out over the week end that there would be zero change to flights or the moment of good on march29th so blaming BREXIT really is a kop out for a strategy that simply didn't work.

Previous legislation indicated that in the event of no deal (or WTO terms if some prefer), air traffic movements between the UK and EU countries would be limited to the number of flights in S18 and W18/19. I think that applied by airline and by route but am not certain. Has that changed with the new directive?

In fairness, flybmi were not solely blaming BREXIT and sited fuel costs for instance as well. They are hardly likely to admit it was poor management, a wrong business model or poor route selection.

I think Coathangar made a fair point. While it's nonsense to blame BREXIT solely for all business failures and problems, it's equally mistaken in my view to imply the uncertainty caused is not affecting some businesses, including airlines, to some degree.

I hope Loganair or other airlines are able to pick up some of the routes and staff following the cessation of flybmi.

 

[smithy108]

This article has come as a result of the FLYBMI failure but I think illustrates the state of the market with same analysis of past failures and potential suspects (Its a bit long but worth a read, I have taken a few of the images out)
Flybmi won't be the last airline failure, say analysts

In two short sentences, Flybmi's announcement that it had collapsed summed up the airline industry's woes: fuel costs, green taxes, Brexit uncertainty, falling passenger numbers. It might have added fierce competition, but that is probably a statement of the obvious.
Several European airlines have folded or hit financial trouble during the past two years. Britain's Monarch collapsed in October 2017, while Germany's Germania filed for insolvency earlier this month.
Air Berlin and Alitalia went bust, although the latter was propped up by the Italian government.
Primera, Cobalt, Azurair Germany, Small Planet Airlines and SkyWork may not be household names, but all succumbed to the market turbulence sweeping across the sector.

UK regional airline Flybe came close to folding and put itself up for sale. And last month Norwegian Air Shuttle was forced to seek an emergency cash injection, putting a question mark over its promise to revolutionise budget long-haul travel.
Ryanair boss Michael O'Leary may be prone to a bit of hyperbole, but when he warned this month that the industry would see more bankruptcies no one doubted him. "Winter is the worst time of year for airlines," says Ascend Consultancy analyst Peter Morris. "If you can get through the winter there's a chance of getting summer bookings."

So why are so many airlines failing?
Travel expert Simon Calder went to the heart of the problem when he told the BBC that the airline industry's problem is: "There are simply too many seats and not enough people." But the reasons for this are many and complex.
The growth of airlines in Europe, mainly budget carriers, came on the back of de-regulation and an explosion of route networks.

Using new and cost-efficient aircraft operators started new services. If one route failed, they tried another. Flexibility was key.
According to the International Air Transport Association, the number of flights in Europe has risen more than 40% compared with a decade ago. At the same time, though, fares have fallen, squeezing margins and reducing financial room for manoeuvre.
This expansion has not insulated the industry from wider shocks, such as economic slowdown, rising oil prices, and unfavourable exchange rates - the depreciation of sterling has made it more expensive for Britons to go abroad.
And there are unexpected extra costs - from traffic control strikes, maintenance bills, bad weather (remember the Beast from the East) and passenger compensation. New EU passenger compensation rules were, said Wizz Air boss József Váradi, becoming a real burden on airlines. He cited this, along with fuel costs, as the two biggest squeezes on airline profitability.
Oil prices rose and slumped in 2018, and since the start of the year have been on their way back up. Fuel costs have been cited as a factor is almost all the problems reported by airlines in the last couple of years.

Flybmi also highlighted another extra cost that did damage - emissions taxes. Tim Jeans, a former managing director of Monarch and chairman of Newquay Cornwall Airport, agrees that it is becoming an serious issue for the whole industry.
"Carbon costs are a creeping cost for all airlines," he told the BBC. "The fees you need to pay to carry out your flying are are going up all the time, and they are now quite a material cost." He thinks many airlines have not fully budgeted for this rise. "It certainly looks like that is the case with Flybmi," he said.
There's also the issue of Brexit. Critics say it has become convenient for UK companies to blame uncertainty around Britain leaving the EU for their problems.But for any UK airline - from Flybmi to British Airways - the potential unravelling of Europe's open skies agreement that has existed for decades is a real worry, Mr Jeans says.
It will certainly hinder the ability of some airlines to do deals and offer services if there is uncertainty about their freedom to fly across Europe, he said.

Ryanair's Michael O'Leary warned of more casualties among airline industry.
Mr Morris says problems at International Consolidated Airlines (IAG) underline how Brexit is worrying the major carriers.
To retain its operating licence in Europe, IAG, which owns British Airways and Iberia, must show it is more than 50%-owned and controlled by EU investors. So, IAG is capping non-EU investment - except for UK shareholders, who will be counted as part of the EU even after Brexit.
It's an example, says Mr Morris, of "how even the big boys might have some problems with the aviation environment".
Will there be more airline failures? "Yes, I think definitely," says Mr Morris.
Airlines that are particularly vulnerable are the smaller carriers squeezed between the major players like BA and Lufthansa, and the big low-cost carriers like Ryanair and Easyjet, Mr Morris says.
The former have economies of scale and a presence at major hub airports like Heathrow. The latter operate larger, more efficient aircraft and more regular services, so have lower per-seat costs. It means both sectors can better withstand shocks.
Mr Jeans agree. "Flybmi's demise is a perfect example of just how difficult it is to make money in that middle ground," he says

 

[JENNYJET]

There appears to be a lot of chatter about BMI going bust.

I am sure, based upon such chatter, that many people believe BMI REGIONAL has been liquidated when they are in Administration, a legal device similar to the US Chapter 11 process. To my knowledge, they stopped flying but not ceased trading.. I may of course be totally wrong given that I have yet to read or hear of Mr. CALDER upon the matter.

I think it possible BA might reabsorb Regional to BMI within the group on the cheap with some tasty aircraft.

A rebirth of BA REGIONAL perhaps?

 

[Matt995]

I think it possible BA might reabsorb Regional to BMI within the group on the cheap with some tasty aircraft.

A rebirth of BA REGIONAL perhaps?

Yes Jenny, it would be nice to think that the UK's national airline, BA, would be interested in regional services in its own country, connecting more UK airports, with each other and supporting the regions, but in reality BA (or is that London Airways?) are only interested in serving London and connecting it to a few other UK airports, they have no interest in the regions, and I cant see them changing their minds in the near future.

 

[BHXsupporter]

BA = London Airlines