Max Kingsley-Jones/LONDON

British Midland is poised to begin its evaluation of the 100- to 120-seat airliner category to allow it to begin the replacement of its Boeing 737 fleet from 2003. Meanwhile the airline, which has been rebranded as "BMI-British Midland" as it prepares to launch transatlantic services from Manchester, is redoubling its efforts to break the deadlock of access to London Heathrow with an approach to the European Commission (EC).

BMI operates 16 737s, seven 132-seat 737-300s and nine 117-seat -500s. These are flown alongside its expanding fleet of 16 Airbus A320/A321s. Managing director Austin Reid says that the airline is about to start detailed studies of potential replacements and hopes to be in a position to make a decision regarding an initial requirement for 10 aircraft by the end of the year. Aircraft under evaluation include the Airbus A318/A319, Boeing 717 and smaller Next Generation 737 models.

"We have to decide whether we want to go all-Airbus," says Reid. "The A318 might be a bit heavier than we need, but that could be made up for by the commonality benefits." Reid adds that he expects deliveries to begin in 2003 and continue through to 2004-05.

Meanwhile BMI's chairman Sir Michael Bishop has turned to the EC to investigate the legality of the UK-US Bermuda 2 bilateral air services agreement which controls access to Heathrow and Gatwick airports. "We are seeking clarification from [European competition commissioner] Mario Monti's team regarding the compatibility of Bermuda 2 with EU competition law," he says. He adds that he believes the agreement acts against the interest of competition.

In a related move Bishop is to ask the UK Government to terminate the Continental Airlines' transatlantic codeshare with Virgin Atlantic, following the US decision last month to reject BMI's request to codeshare with United Airlines from Heathrow: "It is time UK deputy prime minister John Prescott showed Washington that he means business and stands up for Britain's interest," says Bishop.

Source: Flight International