26-Nov-2009 9:10 AM

bmi restructures mainline and bmi regional operations. 600 jobs to go

bmi plans (25-Nov-2009) to restructure its mainline and regional operations, focusing on maintaining within bmi mainline and bmi regional a core network of services in the UK and Ireland, Europe, the CIS, The Middle East and the Kingdom of Saudi Arabia. Under the plan, the carrier plans to focus on:

  • Suspending loss making routes: London Heathrow to Tel Aviv, Kiev, Aleppo, Amsterdam and Brussels from 09-Jan-2009 (Reuters, 26-Nov-2009).;
  • Adjusting capacity to optimise efficiency and profitability, resulting in a reduction in the number of mainline operations aircraft by nine from the current 39. bmi regional is also currently in talks to reduce its fleet;
  • Strengthening organisational productivity and efficiency in all areas;
  • Making use of the synergies of Lufthansa and other partner airlines in all areas (for example, as reported yesterday, allocating a bmi aircraft and bmi slots for use by SWISS to confront BA at Heathrow);
  • Maximising revenue generating opportunities with codeshare and Star Alliance partners.

A reduction in the number of aircraft deployed in bmi mainline and bmi regional operations will result in job reductions coming from all areas of the business, operational and corporate functions. The number of full-time equivalent jobs at risk of redundancy is expected to be approximately 600. However the airline says further job cuts cannot be ruled out as corporate overheads will also be cut to reflect the reduced flying programme. Management has commenced consultations with unions and staff representatives with a view to minimising the number of compulsory job losses wherever possible. [more]

BALPA announced (25-Nov-2009) it would enter talks with bmi to limit the number of job cuts. [more]

BALPA: "We understand the company's situation. They have been hit by the downturn in the economy like other airlines. But we are going to work hard with the company to limit the number of compulsory redundancies. We have done this successfully in other airlines, using a number of imaginative options like early retirements and part time working," Jim McAuslan, General Secretary. Source: BALPA, 25-Nov-2009.

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