BMI

Content

• 1. Corporate Overview
  • BMI is the UK's second leading scheduled full service airline. The airline operates nearly 1700 flights a week over a network of 36 airports in the UK, Europe, India, Saudi Arabia and transatlantic to the US and Caribbean, mostly from London's Heathrow Airport.
  • 1.1 Corporate History
    • In 1964, the aviation company re-names itself as British Midland Airways and carries 1 million passengers in a single year for the first time in 1978.
    • Carries 1 million passengers in a single month for the first time in August 2004.
  • 1.2 Key Facts
  • 1.3 Organizational Chart
  • 1.4 Profiles of Key People
    • Chairman- Sir Michael Bishop
    • CEO- Nigel Turner
    • Deputy CEO- Tim Bye
  • 1.5 Recent Developments
    • In July 2006, BMI enters Russian Federation market, with services to Domodedovo in Moscow from Heathrow, London
    • Also in May 2006, Chairman Sir Michael Bishop, buys out partners share in BMI
  • 1.6 Fleet Size
    • BMI operates a modern fleet of 42 aircraft on both scheduled and charter services.
• 2. Business Description
  • 2.1 Business Segments
    • BMI Airlines
    • BMI Baby
    • BMI Cargo
    • 2.1.1 Products/Services
  • 2.2 Geographical Segmentation
    • The British Isles accounted for 45% of BMIs total revenues in 2004.
    • 2.2.1 BMIs Route Statistics
    • BMI flies to the US, the Caribbean, and India and to most destinations in Europe.
  • 2.3 Key Partnerships/Alliances
    • Hertz Three-year agreement starting March 2006 offering passengers value car hire.
    • OnAir Deal to provide in-flight mobile phone service to passengers traveling to major business destinations out of Heathrow
    • 2.3.1 Code Share Partners
    • 2.3.2 Star Alliance
• 3. SWOT Analysis
  • 3.1 Strengths
    • Strategic Alliances
    • Value Added Services
  • 3.2 Weaknesses
    • Rising Pension Fund Liability
  • 3.3 Opportunities
    • Expanding UK airline industry
    • Increasing price sensitivity of customers
  • 3.4 Threats
    • Intense competition
    • Rising fuel costs
• 4. Key Business Strategies
  • Developing a robust online booking system
  • Enhancing Customer Experience
  • Establishing Brand Loyalty
  • Focus on Innovation
  • Improving Operational Efficiency
  • Strengthening Route Network
  • Pursuing Web Promotional Initiatives
• 5. Financial Performance
  • 5.1 Four-Year Financial Highlights
    • Total sales registered a y-o-y increase of about 4.7% in 2005.
    • BMIs focus on higher yields and better resource allocation resulted in high revenues
  • 5.2 Ratio Analysis
    • In 2005, BMI reversed its three-year streak of loss making, by recording an Operating Profit of US$10 million in 2005.
• 6. Competitive Landscape
  • 6.1 Industry Overview
    • 6.1.1 Industry Definition and Segmentation
    • 6.1.2 Key Drivers
    • Pent Up Leisure Travel Demand Unleashed
    • Revival of Air Traffic
    • 6.1.3 Major Trends
    • Imposition of Fuel Surcharges
    • Mergers Changing Industry Dynamics
    • 6.1.4 Outlook
    • The industry is expected to witness a 75% increase in passenger traffic by 2020
  • 6.2 Competition
    • British Airways
    • EasyJet
    • Ryanair
    • 6.2.1 Competitive Positioning
    • British Airways leads its competitors with revenues of US$14.7 billion in 2005.
    • 6.2.2 Geographical Coverage
    • British Airways derived 49% of its revenue from the UK and 14.5% from Europe.
    • EasyJet derived 83.3% of its revenues from the US. The UK operations contributed nearly 16.7% to the revenues in FY05.
    • In FY05, Ryanair Holdings derived 48.9% of its revenues from the UK and 51.1% from the US.
    • 6.2.3 Client Base
    • British Airways carried the maximum number of passengers (35.6 million) in FY2005
  • 6.3 Financial Assessment
    • British Airways annual turnover increased by 15% y-o-y in 2005.
    • In FY2005, EasyJets revenue grew 20.4% over the previous year.
    • Ryanairs annual revenue grew 24% y-o-y in FY2005.
• 7. Outlook
  • The UK airlines industry is expected to expand rapidly by 13.3% during 2004-2008, with continued increase in the number of inward and outward air trips. The number of air passengers going on long-haul trips is also rising.
• List of Tables/Figures
  • Table 1.1 Key Facts
  • Table 1.2 Profiles of Key People
  • Table 1.3 Recent Developments (Dec2005-Jul2006)
  • Table 1.4 Fleet Size
  • Table 2.1 Products/Services
  • Table 2.2 Other Services
  • Table 2.3 BMI Cargo
  • Table 2.4 BMI Destinations
  • Table 2.5 Key Partnerships/Alliances
  • Table 2.6 Code Share Partners
  • Table 2.7 Star Alliance
  • Table 4.1 Diamond Clubs Membership Benefits
  • Table 5.1 Four-Year Financial Highlights (2002-2005)
  • Table 6.1 Leading Players in the UK airline industry
  • Table 6.2 Competitive Positioning (2005)
  • Table 6.3 Client Base (2005)
  • Figure1.1 Organizational Chart
  • Figure 2.1 Geographical breakup of Revenues (2004)
  • Figure 2.2 BMI Destinations
  • Figure 4.1 Case study on technology partnership with Attachmate
  • Figure 4.2 Case Study on Outsourcing Partnership with Ventura to Enhance Customer Services
  • Figure 4.3 Case study on developing a forecasting service to reduce de-icing related departure delays
  • Figure 5.1 Profitability Ratios (2003-2004)
  • Figure 5.2 Performance Ratios (2003-2004)
  • Figure 6.1 Industry Segments
  • Figure 6.2 UK Airlines Industry Forecast (1954-2020)
  • Figure 6.3 Geographical revenue Segmentation (2005)
  • Figure 6.4 Revenue Comparison (2005)
  • Figure 6.5 Net Profit Comparison (2005)
  • Figure 7.1 BMI revenue Forecast (2006-2009)
  • Figure 7.4 Number of Passengers Forecast (2006-2009)