Q. Starting with oil, how difficult is business with the price?
A. Well you know how to cheer me up in the morning. Very difficult for all airlines, many airlines are hedged like bmi for 2008, but can't stop prices coming through later this year and 2009.

Q. You've opened up a number of routes, if the price of oil continues to rise, will you have to begin cutting them?
A. No intention to do so, routes come and go and capacity is changed to suit demand. What you might find is that bmi will reduce frequency through the winter, for example 8 down to 5 a day through the winter.

Q. Is that the plan?
A. "I think there's going to be some modest capacity reductions through the winter."

Q. Earlier this week we had a positive trading statement from Easyjet. Rise in people flying with them. Are you seeing similar growth?
A. Revenues are up year on year, load factors are stable. It's not all doom and gloom but the economy is fragile. If house prices are falling people like to keep their money in their pockets. Certainly a number of corporate customers are cutting back on travel. It's tight at times, but you have to be innovative, and revenues are up year on year.

Q. But is the airline industry strong enough to weather a downtown that could last more than one year?
A. The airline industry is incredibly resilient: individual airlines make returns and other airlines have ways of surviving that are quite surprising and innovative. It's still a cash rich industry. I'm sure the airline industry will still be going and still be competing next year, whether it can afford to or not.

Q. There's been much talk of consolidation, Virgin Atlantic has talked of a tie-up with you. Is that something you'd look at favourably?
A. I think consolidation will come. We're on the lookout for partners to consolidate with. We'll see what the winter brings. At these sort of times, airlines have to talk to each other out of economic necessity, we have to find innovative ways of surviving and that might be the way it goes, "but as far as bmi goes, we're happy with our situation and we're looking for other airlines to either take over or consolidate with."

Q. You seem to be suggesting that by this time next year you won't exist in your current form? You will have either merged or taken over another company?
A. No, we might have taken over another company but I think bmi will still be in existence this time next year as an entity.

Q. US Airways is removing the in-flight entertainment systems on many of its flights to save fuel. Would you consider something similar?
A. Well, it's trying to take weight off the aircraft and weight is the enemy because it means you burn more fuel. We might have to consider some in-house jugglers or in-house comedians but our on board entertainment system is an integral part of product, people like, especially on our mid-haul routes to middle east etc. That will be staying on board as far as bmi is concerned.

Q. Briefly, what do you make on the EU proposals on air fare clarity?
A. Anything that ends up misleading the consumer is not good. We have to reflect the fact that consumers that react very positively to low headline fares. It is one way of stimulating one part of the market, but shouldn't be misleading our consumers.