bmi plans BMED integration

bmi has announced details of its
integration programme for BMED following the acquisition of the airline
by the bmi group last month.
bmi management has undertaken a comprehensive 30 day review of BMED and
plans to have completed the total integration of the former BMED network
into the bmi operation for the start of the Winter 2007 flying

Nigel Turner, chief executive officer of bmi, said: “In assessing our
investment in BMED before the decision to acquire our 99 per cent
shareholding, it was clear that we could only justify the investment of
£30 million if we were able to reduce the cost base significantly. This
had to be achieved whilst still maintaining the BMED revenue streams as
well as maintaining and developing its route network from the winter
07/08 timetable period onwards. However, it is critical that we do not
lose the essence of BMED in the integration process.

“We have therefore set ourselves a clear timetable and strategy that
will achieve just that. The key elements of our integration programme
will be:

We will operate as one airline - bmi - from 28th October
Until then BMED will continue to operate as a BA franchise with no
change to routes
From the second quarter of this year bmi will - subject to regulatory
approval and agreement of a codeshare with BA - be selling BMED services
with travel being available from date of sale
By 28th October 2007
- The business will operate on a single bmi Air Operator’s Certificate
(subject to CAA approval)
- All BA livery and uniforms will be removed and all uniformed staff
will be in bmi uniforms
- A new midhaul product combining the best of BMED and the best of bmi
will be agreed and will commence roll out across all bmi mid-haul
- All BMED services will transfer from T4 at Heathrow to T1
- The BA franchise will cease but, subject to regulatory approval, BA
will retain a codeshare facility on the former BMED routes
- Head office functions will be absorbed by bmi and BMED’s head office
will close
From 28th October 2007
- A gradual phased integration of the bmi and BMED flight deck and cabin
staff will commence

“I genuinely believe that we can create a combined business that is
better than the sum of its parts. We are creating a group with annual
revenues in excess of £1 billion and with a much expanded route network
from London Heathrow. To achieve this kind of growth without the
acquisition and integration of BMED could take years to achieve.”


“The immediate implications of the integration are that a number of BMED
head office jobs are at risk of redundancy. We will shortly be starting
the consultation process to address any possible job losses as a
consequence of this. Where job losses at BMED are unavoidable we will be
doing everything possible to look at the suitability of candidates for
any vacancies that currently exist within bmi, in order to reduce the
number of compulsory job losses.”

Within the rest of the BMED workforce, both in the UK and overseas,
there is no indication that any jobs will be lost. The continuity of the
BMED operation is critical and bmi will continue to operate all of the
BMED aircraft with BMED dedicated crews until at least 28th October.
There will then be a gradual integration of crews anticipated to take
well into 2008 on bmi’s current planning.
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