Chris Jasper/MADRID
UK carrier British Midland (BM) is plotting a major departure from its established strategy as a result of its decision to join the Star Alliance. New European growth plans focus on destinations not served by the alliance from London Heathrow and away from the backyards of part-owners Lufthansa and Scandinavian Airlines.
BM's plans for transatlantic flights remain. Chairman Sir Michael Bishop claims the UK Government has agreed that Heathrow should be developed as a hub for Star as well as British Airways and oneworld, paving the way for a breakthrough in UK-US talks which he hopes will allow his airline back into the USA.
The new European strategy means BM is largely eyeing Mediterranean destinations rather than points in northern and central Europe. The carrier has already launched services to Madrid, Milan and Rome, while other cities fitting its requirements would include Lisbon and Barcelona.
BM recently halted flights to Warsaw and Prague, which had been part of the airline's expansion strategy adopted after it had established itself in north-west Europe. BM says the pair were dropped for reasons unconnected to Star, but admits its Budapest route is now isolated and could be reviewed. Plans for flights to Moscow continue, but have been complicated by "sensitive" talks concerning designated Russian carrier Transaero.
Bishop says recent remarks by UK transport minister Lord McDonald suggest London is prepared to adopt the "Chicago" model for Heathrow. Although United Airlines uses Chicago O'Hare as a hub, American Airlines competes effectively there, he claims. With BM on board, Star now has 27% of Heathrow slots against oneworld's 45%.
Should BM still fail to win US slots, the airline has fallback options, Bishop says. He says US flights from Manchester alone are not an option, but sources say these might be contemplated as part of a phased deal involving subsequent Heathrow services. Another option could see BM use two Airbus A330-200s to launch non-US long-haul services. BM is understood to hold licences for routes to the Middle East and perhaps South Asia and Africa, while destinations such as Mexico City - hub of Star member Mexicana - are possible.
While BM's Fokker replacement plans are on hold, Bishop says the airline is negotiating with Embraer to convert options for 10 50-seat ERJ-145s on top of 10 already ordered. Some may be taken as -135 variants. He also welcomes the ERJ-170 and -190, having failed to persuade Boeing to offer a 90-seat version of its 717. The 117-seat Boeing 737-500s are to be retained despite BM's short-haul shift to the A320 family.
Source: Flight International
