BMI Announces Low Cost Carrier

A new low cost airline is to be launched in March by the UK's second biggest carrier, BMI British Midland. It will operate from BMI's base at East Midlands airport and fly to destinations in France, Spain and Portugal.

The announcement comes as the low cost sector puts increasing pressure on European short haul routes. It is also seen as a response to another UK no-frills operator, Go, which intends to make East Midlands its third UK base.

BMI says its new venture, as yet unnamed, will operate as a subsidiary and be seperate from its main scheduled business. Flights start on March 23 to destinations which include Barcelona, Nice, Palma, Malaga, Faro and Alicante and passengers will be able to buy tickets later this month.

A company spokesman said that one-way fares might start at as little as GBP£25 (USD$36) and the routes will be operated by Boeing 737 aircraft.

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