Bmi to 'ditch' business class

PASSENGERS on bmi, the airline headed by Sir Michael Bishop, are to get a distinctly no-frills service from Heathrow. The carrier is to turn most of its services from the airport into a low-cost operation, with low fares, charges for in-flight catering and an end to business class on all but four of its 17 short-haul Heathrow routes.

Bmi said the changes followed a comprehensive research programme that looked at the views and habits of 10,000 air travellers.

Although a separate business class will remain on four routes, Heathrow to Glasgow, Edinburgh, Belfast City and Brussels, the airline said it felt most business travellers now look to economise on their air fares and demand for a high-quality services had fallen.

Nigel Turner, bmi's chief executive, 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 the 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.'

The new cheap fares will start at £25 one way and passengers will also have to start paying for their in-flight food and drinks. The changes do not, however, affect the services run by the company's bmi regional operation, which includes services out of Aberdeen, Edinburgh and Nottingham East Midlands Airports.

Today's announcements come just after the airline confounded City expectations with better-than-expected annual profits. The carrier had been expected to break even, but pre-tax profits came in at £2.1m for the year to 31 December. That compares with a loss of £9.8m the previous year. Turnover was £830m against £772m.

Bmi remains at odds with Ryanair's claims that there is likely to be a 'bloodbath' among low-cost airlines following a winter price war. Bmi's bmiBaby cut-price operation remains in good shape, Bishop said in March.