British Mediterranean is to upgrade its all-Airbus fleet to boost capacity on its high-yield routes. The British Airways franchise partner has two Airbus A321-200s entering service next February and March and its fleet plan forecasts the need for three additional A321s by 2004.

The airline is adding a twice-weekly service to Addis Ababa, Ethiopia, on 4 October and plans to start other services to the Horn of Africa, likely to start with flights early next year to Djibouti. Des Hetherington, the airline's chief executive, says he is confident the region is stable following decades of war and that demand is strong for flights from London. The flights will refuel at BMed's Egyptian mini-hub at Alexandria.

Hetherington, formerly Kenya Airlines' commercial director, rules out competing on the trunk routes to the major East African capitals, but says: "There are lots of destinations without direct links to western Europe where a service with a fuel stop is feasible."

BMed operates four 124-seater A320-200s, but Hetherington predicts these will be phased out by 2005. The airline has been unable to acquire additional slots at London Heathrow for its services to the Middle East and former Soviet central Asian republics, and needs to introduce the larger, 149-seater aircraft sooner than originally planned. The three additional A321s are likely to be leased through Debis Air Financing.

BMed's business is likely to be less affected than others by the economic downturn. The airline specialises in servicing secondary routes with significant ethnic business links to London. BMed became a BA franchise partner in 1997 with its service to Beirut.

Source: Flight International