BMI last week announced sharp cuts to its network, the fleet and staff in a dramatic effort to return the airline to profitability.

The carrier, now fully owned by Lufthansa, will cut around 600 of the 4,470 jobs as it downsizes its operations. BMI is also taking out nine of the 39 aircraft in its fleet and discontinues several loss-making routes. With the return of two Airbus A330-200s to the lessor, the airline effectively ceases offering long-haul flights with the exception of some medium- to long-haul segments in the Middle East.

BMI says it focuses on "maintaining within BMI mainline and BMI regional a core network of services in the UK and Ireland, Europe, the CIS, the Middle East and the Kingdom of Saudi Arabia." The company believes that "once stabilised the business can then be grown again in the years ahead when the economic environment improves and market demand justifies it."

The fleet reduction of nine aircraft is to be completed in the first half of 2010. Amongst others, BMI plans to sell three Embraer ERJ-145s and will return two of its three A330s to the lessor. The medium-haul services will be operated by one A330, one Boeing 757 and the A321 fleet.

BMI will stop flying from Heathrow to Brussels, Tel Aviv, Kiev and Aleppo in January of 2010 while services to Amsterdam are suspended at the end of March 2010. Seasonal services to Palma and Venice will not be reinstated next summer.

The carrier has posted a huge GBP155 million loss on GBP1.05 billion in sales in 2008 and Lufthansa agreed to provide a shareholder loan to keep BMI flying longer term. Lufthansa is looking at offers to sell the unit, but is believed to be waiting for the market to recover hoping for a higher price.

Image credit: BMI