The BMI group will consider launching continental European bases for subsidiary BMIbaby if the low-cost unit continues to progress as well as it has done during its first two years of existence, writes Mark Pilling.
"We are looking at it very carefully," said chairman Sir Michael Bishop, after announcing a small pre-tax profit for the BMI group of £2.1 million for 2004.
The group is studying the portability of the BMIbaby brand, and a move into Europe could come within the next three years if the carrier meets its business objectives, he says.
BMIbaby operates from five bases in the UK with 16 Boeing 737s. Passenger numbers rose by 16% in 2004 to 3.2 million, with load factors increasing by seven percentage points to 78%.
While EasyJet and Ryanair warn of declining yields in an intensely competitive market, BMIbaby is seeing the opposite effect, says Bishop. "The sector is stabilising and most importantly our yields at BMIbaby went up by 4.1% in 2004 and the trend has continued this year."
BMIbaby's latest base at the UK's Birmingham airport opened in January and has become the most successful launch to date, said Bishop.
Source: Flight International
