As its celebrates its 10th anniversary, British Airways franchise partner British Mediterranean Airways - now rebranded as BMed - has announced plans to double its business by 2010.
The airline, which serves 15 destinations in 14 countries in the Levant, central Asia, Iran and north-east Africa from London Heathrow, is already committed to an extra Airbus A321 for next summer and is in final negotiations with Airbus for a further six aircraft for delivery between 2006 and 2012, says chief executive Des Hetherington. BMed is working towards an all-A321 fleet by 2013, when the lease runs out on the last of three A320s. With the scarcity of slots at Heathrow, Hetherington says the larger aircraft makes more sense.
Next year's growth will be generated on existing routes, but for the year after, BMed will be looking to add another destination in Russia and, possibly, Africa. At least one more city in Iran is also a distinct possibility, says Hetherington.
Based on what Hetherington calls an "exceptionally good" performance in the first six months of its financial year to the end of September, BMed projects a turnover of £100 million ($180 million) and a pre-tax profit of around £6 million, for the full year, both figures representing an increase of around 20% on the previous year.
Although BMed private shareholders called in financial advisers NM Rothschild earlier this year to examine options to facilitate growth, weighing up such actions as a trade sale, private sale or flotation on the stock market, Hetherington says there is no pressure to change the status quo. "We have a well-focused and loyal group of shareholders," he says, but concedes that "we have to be ready if and when shareholders want to realise their investment."
GÜNTER ENDRES BEIRUT
Source: Airline Business
