bmi can ‘survive’ despite losses

12th Nov 2009
bmi can ‘survive’ despite losses

British Midland Airways, or bmi, has countered the suggestion that it will not be capable of continuing operations beyond this year and says it will be able to meet its financial commitments and had adequate resources.

An article in The Times newspaper claimed that a combination of the economic downturn, fuel costs and problems with Heathrow Terminal 5 have left the carrier struggling for survival.

But bmi has responded, revealing “The statement in the accounts clearly states that the directors and auditors believe that the company can meet its financial obligations going forward.

“Additionally, with the current level of commitment shown by Lufthansa and with advanced business initiatives in place, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence in the future.”

Auditors warned the airline needed an extra £190m of funding by October 2010 to keep running.


But managers said a loan from parent company Lufthansa and the sale of landing slots at Heathrow would allow it to meet financial commitments.

BMI operates just over 30 aircraft and owns 11% of the landing slots at Heathrow. It is attempting to restructure and cut costs.

Last week the low cost part of the company, bmibaby, said it was axing 158 jobs and reducing its number of aircraft from 17 to 12.


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