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Nigel Turner on the Today programme
If you're up early, the Today programme should prove to be an interesting listen, with NT outlining his future plans in the business section at twenty past six...
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So did anyone catch this then? Just wondering if there were any interesting snippets.
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Listen again using:
1. http://news.bbc.co.uk/today/hi/default.stm 2. "Listen" 3. Fast forward to: 21.45 Key Points: Q: How difficult is the current Oil price for you: A: BMI has hedged for majority of 2008. 2009 more difficult. Very challenging times. Q: Will you cut routes due to the oil price? A: Not planning to cut routes due to oil price - will be dependent on demand. But will reduce frequency over winter to match demand from say 8 / 10 a day to 6 / 5 a day. "Modest capacity reductions over the winter - Yes - BMI will be doing that" Q: Easyjet recently showed positive numbers - what about you? A: Revenues are up year on year / Loadfactors are stable. Customers want to keep money in their pockets when house prices are falling Corporates are cutting backing on travel - specifically in the banking sector Tight times - we have to be innovate. Q: What about a tie up with Virgin Atlantic? A: BMI are looking for other airlines to consolidate with or take over - we will see what winter brings. I think BMI will still be in existence this time next year as an entity. (Sounded quite sure about this!) Q: US Airways is removing IFE to save fuel - would you do that? A: On board entertainment is integral part of product - no plans to remove it to save weight / fuel. Q: Airfare Clarity? A: Misleading the consumer is not good. If you see a 99p sticker you won't normally end up with a 99p fare! |
http://news.bbc.co.uk/today/hi/default.stm now has the programme available for listen again for one week from today. The interview begins at around 21:30, no transcript available.
My brief summary... this is not verbatim, except for important quotes in "" There isn't much of any great surprise, except a hint that (domestic) routes with more than five flights a day are likely to see capacity reductions through the winter to balance oil prices versus passenger loads. The price of oil is obviously going to kick-in soon, because bmi has only hedged their price for part of 2008. 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 :D 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. |
Goshdarnit, rupert_s can transcribe quicker than me :D
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Originally Posted by rupert_s
(Post 10016971)
But will reduce frequency over winter to match demand from say 8 / 10 a day to 6 / 5 a day. "Modest capacity reductions over the winter - Yes - BMI will be doing that"
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Originally Posted by rupert_s
(Post 10016971)
I think BMI will still be in existence this time next year as an entity. (Sounded quite sure about this!)
..."it's an equitable life, Henry". |
An airline is able to claim historical precedence where At least 80% of the slots were operated by an airline as cleared by the coordinator.
I'm not sure if I'm correct in saying this, but there are different scheduling periods for summer and winter, so if the winter slots are lost it won't affect their summer slots. I'm still reading through some more material to understand the process better though. |
Originally Posted by Oxon Flyer
(Post 10021974)
Can bmi take out numerous rotations from LHR for a whole timetable season without losing slots or having to deploy slot-sitters ?
Be interesting to see the winter timetable when it goes online (wasn't until early September last year). Didn't Turner say he wanted to serve Tehran with more flights? Are more MIDx aircraft being returned to the lessor And I would have thought Baby was less attractive than ever given oil prices and the age of its 737s. |
Could also be a reduction of frequencies on non-LHR routes... perhaps the busier Scotland - England bmi Regional routes are going to be thinned down through the summer. The jungle jets aren't easy going at the pumps, so to speak.
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