BMI British Midland is aiming to cut its operating costs by around 20% over the next three years by rationalising its fleet and shedding around one-third of its staff.
The UK airline says it is in negotiation with Airbus and "several other sources" to replace its six Fokker 100s with up to nine Airbus A319s as it reacts to the growing threat from no-frills carriers.
Nigel Turner, BMI chief financial officer, says the fleet renewal is part of a three-year cost-saving exercise called "Project Blue Sky" that aims to reduce costs by around £100 million ($166 million) to bring it in line with "hybrid" no frills carriers, such as EasyJet, serving primary airports. Turner says he expects the "natural attrition" of around 1,500 airport staff over the next three years - around 30% of the carrier's staff - as it moves to fully automated ticketing.
BMI's six Fokker 100s are due to return to Debis Air Finance from April and talks are under way with the lessor and other sources, including Airbus, to acquire up to nine replacements as they leave the fleet. "These could comprise any of the four A320 variants," says Turner, with the A319 seen as the frontrunner. The airline already flies 11 A320s and 10 A321s.
Source: Flight International
