Bmi Remains Hopeful Despite Big Losses

British Midland Airways, better know as Bmi, has countered the speculation that it will not be able to continue its operation beyond this year. The airline said that it will be able to meet its financial commitments and still has adequate resources.

Many reports have claimed that, due to the combination of the economic downturn, problems with Heathrow Terminal 5 and fuel costs, the airline has been struggling to stay alive. However, Bmi says that this is not the case at all. In a statement released by the airline, they clearly state that the company will be able to meet all of its financial obligations. The airline also said that, with the current level of commitment shown by Lufthansa and with an advanced business initiative in place, the directors have a reasonable expectation that the company has more than enough resources to continue on strong.

Auditors have already warned that the airline needed an extra £190 million in funding by October 2010 to keep running. The managers of the airline said a loan from its parent company Lufthansa and the sale of landing slots at Heathrow Airport would be more than enough to meet the financial commitments that it needs.

As of right now, Bmi operates just over 30 aircrafts and owns 11 percent of the landing slots at Heathrow. The airline is doing its best to restructure and cut costs. Just last week the low cost part of Bmi, bmibaby, said that it was axing 158 jobs and reducing its number of aircrafts from 17 to 12.