Tag Archives: bmi

Impact of change in the airline business

It’s interesting to consider and to witness how business moves impact our decisions as frequent flyers.  For example, all of AA’s recent promotions are attempting to retain their existing customers and draw in new ones while the company goes through bankruptcy (more on that later).  Another example is the bidding war that is going on (post courtesy of Lufthansa Flyer at Boarding Area) for an airline that is obscure to most people, bmi (British Midland International).  bmi is the second largest airline at London Heathrow (LHR), and a member of Star Alliance.  In the past month, British Airways was set to purchase bmi from Lufthansa, which would’ve strengthened BA’s hold at LHR, and removed bmi from Star Alliance.

Now, apparently Virgin Atlantic has joined the fray for bmi.  If Virgin were to win, this would be interesting for several reasons.   For one, Star Alliance would be able to maintain a decent presence at LHR.  Second, Virgin has been rumored to be looking to join an alliance, and this merger would pave the way for them to join the Star Alliance (they already have partnerships with 9 Star Alliance airlines, and they are 49% owned by fellow *A airline Singapore Airlines).  So it will be interesting to see how this plays out…

bmi is/was a favorite among some frequent flyers due to their 600-mile minimum segments as well as a generous redemption chart.  It will be interesting to see how things play out with all this…