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AVIATION - BMI DISCOUNT FLIGHTS |
BMI forays into budget sector from Heathrow
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BY OUR AVIATION CORRESPONDENT
3 September, 2005: BMI, Britain’s second largest private sector airline, aims to become the first low-frills airline operating flights to and
from Heathrow. As part of this strategy shift , the airline will offer its passengers European fares as low as Euro 25
and do away with the business class, except in Glasgow, Edinburg, Belfast and Brussels routes. The rest of its flights will levy a charge for sandwiches and snacks.
The airline expects to save Euro 30 million a year through these measures.
BMI fares will be categorized into tiny, standard and premium. What this essentially means is that all passengers on
board will get the same service. The difference will only reflect in flight–time accessibility, access to lounge and
check-in.
BMI top brass felt that it was “over-delivering” its customers following a survey undertaken over a period of six
months. The survey intended to find out the priorities of around 10,000 of its travellers.
BMI chief executive Nigel Turner said the survey revealed that the airline was moving out of sync with customer
expectations and market direction.
It may be recalled that BMI had entered the budget airline market in 2002 with the launch of bmibaby. BMI is
essentially known as an airline preferred by business class travelers, thanks to its membership in Star Alliance, the
largest airline alliance in the world.
The BMI survey brought to light the interesting fact that majority of its customers traveled on its business class.
Majority did so in the rear of the aircraft.
BMI's research has found half the customers on its mainline flights were travelling on business but most were doing
so in the rear of its aircraft.
The passengers who opt for BMI’s tiny fares will have to book tickets by internet, check in at automatic terminals
and will be fined for changing reservations. The premium customers will get to check-in at manned counters and
will be able to alter the ticket without paying a penalty.
BMI would have gone low-cost for entire flights at Heathrow but for the high airport costs. BMI recorded a profit of Euro 2.1m in 2004.
BY OUR AVIATION CORRESPONDENT
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