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bmi regional prepares to launch as an independent operator

Analysis

In a couple of weeks bmi regional will cut the umbilical cord with parent bmi and start operating as an independent regional airline under a new 'BM' IATA designator and a softly revamped branding. The airline's network will encompass four UK domestic routes and 11 European routes.

The decision to enter the market carefully and not with a dazzling big bang proves a responsible management that is fully aware of the prevailing challenges faced by regional airlines in Europe. Airline members of the European Regions Airline Association (ERA) recorded a 2.9% decline in scheduled passenger numbers and a 5.5% fall in scheduled RPKs for 1H2012, showing a drop in demand that reflects the current economic climate and uncertain outlook.

The formal split from bmi on 28-Oct-2012 follows the acquisition of the Aberdeen Airport-based regional airline by Sector Aviation Holdings Ltd (SAH) in May-2012 and the preceding purchase of bmi by British Airways' parent company International Airlines Group (IAG).

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