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bmi announces redundancies at BMED
Bmi is due to start redundancy consultation for BMED head office jobs following its acquisition of the airline last month.
The airline said there were not likely to be further job losses in the UK or overseas as a result of the integration of BMED services.
“The immediate implications of the integration are that a number of BMED head office jobs are at risk of redundancy,” said Nigel Turner, chief executive officer.
“We will shortly be starting the consultation process to address any possible job losses as a consequence of this. Where job losses at BMED are unavoidable we will be doing everything possible to look at the suitability of candidates for any vacancies that currently exist within bmi, in order to reduce the number of compulsory job losses.
“Within the rest of the BMED workforce, both in the UK and overseas, there is no indication that any jobs will be lost.”
Following a 30-day review, bmi has drawn up plans to integrate the airline in time for the start of winter 2007 schedules.
BMED will be fully integrated into bmi from October 28, operating on a single bmi Air Operator’s Certificate, subject to CAA approval.
A new mid-haul product “combining the best of BMED and the best of bmi “ will be agreed and will be rolled out across all bmi mid-haul services, said the statement.
All BMED services will transfer from Heathrow Terminal 4 to T1.
The BA franchise will cease but, subject to regulatory approval, BA will retain a codeshare on the former BMED routes
Head office functions will be absorbed by bmi and BMED’s head office will close.
From October 28, a gradual phased integration of the bmi and BMED flight deck and cabin staff will start.
Turner added: “In assessing our investment in BMED before the decision to acquire our 99% shareholding, it was clear that we could only justify the investment of £30 million if we were able to reduce the cost base significantly.
“This had to be achieved whilst still maintaining the BMED revenue streams as well as maintaining and developing its route network from the winter 07/08 timetable period onwards.
“However, it is critical that we do not lose the essence of BMED in the integration process.”
BMED has operated as an independent franchise partner of BA since 1997.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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