bmi has announced restructuring of its mainline and regional operations, including cost saving and revenue enhancement initiatives.

The move takes place against a background where the airline industry is facing the challenges of a downturn in demand and the worst recession in the UK since records began.

The airline announced it will be reducing the number of aircraft in operation from 39 to 30, by suspending non-core and unprofitable services. This will result with a loss of approximately 600 jobs, which follows a recent announcement of 158 job losses at its low cost arm, bmibaby.

The restructuring plan will see bmi focus on the following key areas:

• Suspending loss making routes
• Adjusting capacity to optimise efficiency and profitability
• Strengthening organisational productivity and efficiency in all areas
• Making use of the synergies of Lufthansa and other partner airlines in all areas
• Maximising revenue generating opportunities with codeshare and Star Alliance partners

The airline announced they will focus on maintaining within bmi mainline and bmi regional a core network of services in the UK and Ireland, Europe, the CIS, The Middle East and the Kingdom of Saudi Arabia. However, from January 2010 they will suspend flights from Heathrow to Brussels, Tel Aviv, Kiev and Aleppo and the service from Heathrow to Amsterdam will be suspended in March 2010.

bmi will, however, continue to offer services from London to Brussels through a codeshare arrangement with Brussels Airlines. The seasonal services from Heathrow to Palma and Heathrow to Venice will not be reinstated in summer 2010.

The Lufthansa Group took over bmi in July 2009 and shortly after undertook a due diligence exercise which highlighted the need for a restructuring of the business. Lufthansa has given bmi its full support for the actions it is undertaking in this restructuring programme.

Once stabilised, the business can then be grown again in the years ahead when the economic environment improves and market demand justifies it.

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