Bmi adopts low fares model at Heathrow

Thursday, 23 May, 2005 0

Bmi is to ditch business class on all but four short haul routes from Heathrow and offer lower fares in a bid to better compete with no-frills rivals.

The carrier is to switch to a single class service on 16 Heathrow routes from August 1 and offer the same fares as low cost sister airline bmibaby.

Heathrow’s second biggest airline will offer low fares starting at £25 single as part of a revamped three-tiered ticketing scheme – ‘tiny, standard and premium’. For travellers wanting some flexibility and service, standard fares will be available, while those looking for full flexibility and the highest levels of service, premium fares will be offered.

The only routes to retain business class will be domestic flights from Heathrow to Belfast, Edinburgh and Glasgow and Heathrow-Brussels.

The changes, which include online booking, more self-check-in kiosks and new systems to allow check-in and printing of boarding passes at home, are expected to save the airline more than £30 million a year.

Bmi said the restructure was being made following a six-month study of 10,000 air travellers.

A spokesman told TravelMole that the airline was reacting to a shift in attitudes to flying brought about by the no-frills carriers.

“Low cost is established in the leisure sector but is eating into the business sector as well,” he said.

Chief executive Nigel Turner said: “For the last three years we have faced two fundamental issues. More than half of our passengers travel on business – but most of them do so in the rear of the aircraft. They or their companies choose to travel in economy. And our leisure travellers are getting lowest fares but a full service offering.

“Now we’re getting back in sync with what our customers want. We’re giving them the choice. They can choose what they want – and what they want to pay for – when they travel.”

Report by Phil Davies

Phil Davies

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