British Midland (BM) is close to placing a substantial order for aircraft in the 180-seat class, which will be phased in over the next five years to replace part of its Boeing 737 fleet.
The expanding UK airline has hinted for some time that it was considering larger aircraft, but now says that a decision will be made by the end of March. The contest is between the new Boeing 737-800, the 757 or Airbus A321-200, says BM managing director Austin Reid. He does not specify how many aircraft could be involved, but adds that it is likely to be a "quite a big order".
Deliveries would start early in 1998 and run over five years, "mostly" replacing existing aircraft as they go back off lease. The airline has a fleet of around 25 737s divided between -400s and smaller -300s and -500s, . The new aircraft are expected to be on lease.
The need for higher-capacity aircraft is in part being driven by the airline's decision to introduce flexible seating from April, enabling six-abreast economy seating to be converted to business class. Reid points out that that could potentially take a 150-seat 737 down to around 132 seats.
BMhas also been reporting substantial growth on its European network, reporting an 8.2% rise in scheduled traffic during 1996. Overall scheduled passenger numbers grew by 7%, to a record 5.6 million, despite an increase of less than 3% in capacity. Seat load factors for the year climbed to 66.4%.
Reid says that the airline's future fleet requirements have been modelled on various growth predictions, but even at the most pessimistic outlook of 3%a year, the airline would need larger aircraft.
The airline also received a boost in mid-November when fire closed the Channel Tunnel between the UK and France. The Tunnel operator is competing for passengers on two core BM routes, to Paris and Brussels. Reid estimates that the closure meant ú2.5-3 million ($4-4.9 million) in extra revenues and 30-40,000 passengers.
He adds that the air market was already showing renewed signs of growth even before the fire.
Source: Flight International
