Posted by Seth on December 22, 2011 under frequent flyer, News | 
A binding agreement has been signed regarding the sale of Lufthansa subsidiary bmi to IAG (the consortium which owns British Airways and Iberia). The sale is still subject to regulatory clearance – no small issue considering the impact on slots at Heathrow – but the two companies expect the deal to close in Q1 2012. Lufthansa expects the impact of the sale to be off their books by the end of next year while IAG will spread the costs of the acquisition and restructuring over a three year period.
IAG only wants the mainline operations of the bmi portfolio. As part of the deal Lufthansa is still shopping the bmi regional and bmibaby units to other potential suitors. If the bmibaby brand is not unloaded there are "significant" price reductions to be accounted for. And Lufthansa is still on the hook for the pension plan of bmi employees. At the same time, IAG will receive up to 56 additional slot pairs at Heathrow, further growing their position as the largest operator there.
IAG CEO Willie Walsh offered up the following comments:
Buying bmi’s mainline business gives IAG a unique opportunity to grow at Heathrow, one of our key hub airports. Using the slot portfolio more efficiently provides the option to launch new longhaul routes to key trading nations while supporting our broad domestic and shorthaul network.
This deal is good news for the UK as we will maintain a comprehensive domestic schedule including Belfast. Our plans to expand our longhaul network would guarantee growth by making Britain better able to compete on a global scale. It will also help maximise Heathrow’s position as a world class hub airport.
Customers will benefit from access to new destinations, more convenient schedules, enhanced frequent flyer benefits and greater investment than had been possible for loss-making bmi.
Sure, maintaining the schedule is easy. The real question is what fares will look like without competition on the routes. It is rare that losing a competitor in a market makes things better for the customer.
I really do need to redeem the last of those Diamond Club points quite quickly.
Announcements from IAG and Lufthansa.
Posted by Seth on March 8, 2011 under Flying, frequent flyer, points |
In part one of this report I recounted a great award booking – even though it was all in economy and on small planes – to the Canadian Maritime provinces. Part two will cover my exploitation of the bmi Diamond Club program and their quite flexible routing and award zone rules.
It all started with plans to visit Bangkok in July for a friend’s wedding. With Thai Air still operating their incredibly long LAX-BKK flight I figured it would be nice to get a change to fly that route. Plus I have never been on the Airbus A340-500 so that’s an added bonus. It turns out that Thai has had a TON of award inventory available for westbound travel but nothing available coming back east. Turns out that isn’t much of a problem for me as I’ve turned a long weekend in Thailand into a RTW ticket adventure.
By sheer coincidence a friend of mine is going to be in Capetown, South Africa the week after the wedding. And I have the points available so why not? Even better is that the award cost from Thailand to South Africa is pretty cheap with Diamond Club. Oh, and I am flying via Mumbai, flying in on Thai and out on South African Airways. South African operates the A340-200 on the route which is also new to me.
And then I needed to get home from South Africa. This is where the Diamond Club rules become VERY favorable if you’re willing (or wanting!) a bit of an adventure. Most carriers only permit North Atlantic crossings for that award. Diamond Club permits South Atlantic crossings, too. So I’m taking one. Award seats form Johannesburg to Buenos Aires and Sao Paolo are pretty readily available.
Seats from there back north are a bit harder but I found some availability with Air Canada from Santiago to Toronto. Getting from Toronto to New York City is pretty easy with a ton of frequencies and a couple airports to choose from. To get from Buenos Aires to Santiago there is really only Star Alliance routing. It just so happens to leave 40 minutes before the flight from Johannesburg arrives. So I have a 23 hour 20 minute connection in Argentina. That’ll be fun.
So I’ve made it back to New York City and I’m home. That’s the end, right? Not for me. Diamond Club considers Puerto Rico part of their South America/Caribbean zone. And award flights from South Africa to South America are less expensive than those to North America. Based on straight geography that sortof makes sense – it should be fewer total miles flown – but getting to Puerto Rico can only be done via North America with the existing partners and routes. So I have a stopover in New York (one stopover is free on the bmi award) and then, two months later, a flight in first class from Newark to San Juan. It was actually many fewer miles to take the extra flight. Plus, I’ve been looking for a good excuse to get back to Puerto Rico, possibly in daylight this time. Given that the flight down there is better than free, I see no reason to skip that bit.
Put it all together and I’ve got this 31,586 mile masterpiece:
And all the flights save two short ones are in business class. All but one of the lines are new and a few of the aircraft are, too. All for under 200,000 Diamond Club points. I could’ve done it as cash & points for even fewer but I’m trying to use up my stash and this is a great way to do it.
The booking process was bit more frustrating than I generally enjoy, partly because my Skype connection was flaking out but mostly because the agents at the Diamond Club call center don’t have the best grasp of geography nor of the rules of their program. They initially tried to charge me 5 separate awards rather than the three I booked and all at higher rates than I should have paid. Fortunately I was able to eventually get a supervisor to understand and put it in correctly, but that was two extra hours of annoyance on the phone that I didn’t really need. Still, at the end of the day, completely worth it for this trip. Retail value on the ticket is somewhere north of $10,000; getting it on points for the routes and dates I wanted is just phenomenal.
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Tags: Africa, Air Canada, Airbus, Argentina, award, Bangkok, bmi, Canada, frequent flyer, New York City, points, Puerto Rico, RTW2011, San Juan, South Africa, Star Alliance, Thai Air, Thailand, Toronto
Posted by Seth on February 9, 2011 under frequent flyer, News, points |
Since its acquisition by Lufthansa, British regional carrier bmi has seen many bits of its operations aligned to their parent company’s operating model. Some routes have been cut and others aligned to partner hubs. Other changes have been announced, too, including a previous claim that their frequent flyer program, Diamond Club, would be subsumed into the Miles & More organization. Some reports suggested that change would come as early as the middle of this year.
Apparently someone has had a change of heart.
The latest reports, included in a FaceBook/Twitter-based chat with the CEO say that the end of Diamond Club is, in fact, not going to be happening this year as previously suggested.
Now that bmi is a part of the Lufthansa group of airlines, we are evaluating being part of Miles & More in the long term. A final decision has not been taken and such a move would not happen in 2011. For the foreseeable future we are firmly focused on ensuring that our Diamond Club scheme meets the needs of our loyal customers. Therefore we will continue to improve and develop Diamond Club. We will be launching Star Alliance Upgrade Awards in Q2 this year, which will enable Diamond Club members to upgrade on the majority of Star Alliance airlines using their miles, as well as bringing a number of new partners on board.
This is quite good news for most folks who have been collecting points in the Diamond Club program. It has a number of benefits over the Miles & More program, including cash & miles redemptions and a very flexible award chart. Adding in the Star Alliance upgrade option will improve the program even more.
At the same time, customers who were banking on the transition happening this year (like me) now have to make a decision on whether to extend their current loyalty or not.
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Posted by Seth on January 3, 2011 under Trip Reports |
It is now the new year, with new goals and new milestones on the horizon. But not too late to take a quick look back at 2010 and the travel milestones I hit during the year. Not surprisingly, the more I travel the harder it is to reach new and different accomplishments. Indeed, 2010 had many fewer than 2009, though in a couple categories it surpassed the previous year.
Perhaps the most significant numbers of the year are the total amount of time in the air:
- 151 segments
- 208378 miles
- 18 days 13:31
Those numbers are “butt-in-seat” and based on the distances between the starting and ending airport as calculated on www.openflights.org. They do not include 500 mile minimums or the like. In most cases the durations are based on wheels up to wheels down as tracked by the appropriate authorities, not the block time of the flight or estimates. The 208K miles is the most ever for me in a calendar year as is the 151 segments.
Of the 151 segments flown, more than half (86, to be precise) were routes I had not flown previously. It is certainly becoming more and more difficult to find new ways to get to different places but I continue to try. New lines and new dots are still of value to me and I’m finding that I’m paying a bit more to get them.
I also passed through 77 airports during the year located in 18 different countries. I actually Immigrated 31 different times, including the various times I returned to the United States. On four of my trips there were multiple foreign countries involved.
I visited 15 distinct countries, plus the USA. Eight of those countries (St. Maarten, Sint Martin, Dominican Republic, Ghana, Togo, Guyana, Morocco and Tunisia) were new to me. Two of the crossings (into Togo and back into Ghana were on foot while the Sint Martin/St. Maarten crossing were by car; The others were all by plane. I also added a new state visited – Idaho – to my list even though I drove over from Spokane to get there rather than flying in.
My travels included flying on 24 different airlines (possibly a few more if regional/express carriers are included by I’m not great at tracking those). Of those 24, 13 were airlines I had not previously flown on (AC, AT, BA, BD, BE, HA, LC, RW, SN, TGY, VS, YV & YX). Again, it is getting much harder to find new ones at reasonable prices but I’m doing my best, including a couple booked for the early part of 2011.
None of my milestones north, south, east or west were new extremes for me this year. Nor was my longest flight (SYD-SFO) longer than previous records. I did get a new shortest flight for my list, one that will almost certainly never be broken.
Somewhat amazingly, of the 151 flights I only had three instances where I was struck by operations so irregular that they caused a missed flight. One of them – during my JetBlue AYCJ adventures wasn’t a big deal and I got back on track without really missing anything along the way. Two others – a US Airways delay out of Belgium and a Royal Air Maroc fiasco in Casablanca – caused me to overnight unexpectedly. The US Air incident wasn’t so bad but the Air Maroc one was pretty awful.
Finally, I managed to pick up five new aircraft types during the year. My favorite was probably the smallest, the Cessna 208 Caravan I, though the
| Saab SF340 was fun, too, and the Embraer 175LR was the best ride of them all.
And I got robbed once where the guy took money directly from my hands and probably a couple more times due to bad negotiating skills in markets. At least I robbed the guy who physically took the cash out of my hand back. |
And while I sit on the airplane now, enjoying a flight from Lufthansa into Frankfurt and on to Munich, I realize that I may only be three days into the new year but I’ve already got a new line for my map and tomorrow will bring another one, along with a rubber duckie souvenir. Not a bad way to start the year.
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Tags: Air Canada, bmi, British Airways, Brussels, Dominican Republic, Embraer, FlyBE, Flying, Ghana, Guyana, LoganAir, Lufthansa, Morocco, Togo, Tunisia, Virgin Atlantic
Posted by Seth on July 5, 2010 under frequent flyer, points, Trip Reports |
So I’m somewhere vaguely south of Greenland right now. I’m sitting at the Upper Class bar of a Virgin Atlantic Airbus A340-300 on the late night flight from London to Newark. This isn’t the flight I originally booked and certainly not the flight I expected to be on tonight but, well, life is funny sometimes.
Still, I’ve taken ten flights in the past eleven days and this one is just fine. The good news is that I can still name all ten of the flights. The itinerary was EWR-LHR//LHR-ABZ-LSI//LSI-KOI-WRY-PPW//WRY-KOI//KOI-EDI//EDI-LHR-EWR.That last bit was supposed to be GLA-EWR but, well, life got in the way so there was a change of plans. It meant an extra flight and it also meant a visit to the Clubhouse and a flight on an extra new airline for me – bmi. Yes, I have over 300,000 points accrued in the bmi Diamond Club frequent flyer program but until today I had never flown with them. And I’m not alone in that aspect of my usage of the program.
In addition to bmi, I also go my first flights on FlyBE, British Airways and LoganAir during the trip. Six new airports, four new airlines and one trip on the world’s shortest commercial flight. Plus some awesome experiences in Scotland. Not bad at all.
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Posted by Seth on July 2, 2010 under frequent flyer, News, points |
The writing has been on the wall for bmi’s loyalty scheme Diamond Club since Lufthansa bought out the remaining share of the company around a year ago. The program is different from Lufthansa’s Miles + More – many say better than M+M – and Lufthansa is generally not a fan of having variety in their subsidiary carriers where efficiencies can be realized. Their CEO once noted (roughly paraphrasing here – see below for video of the actual quote) that you might get chips on bmi, spaetzel on Austrian and kartoffel klöße on Lufthansa but they would all come from the same order of tons of potatoes back at the kitchen. And while many loyal users of the Diamond Club program hoped that their inclusion in the Lufthansa family would be different, it appears that is not going to happen.
Musings of The Global Traveller notes that a recent Lufthansa investor presentation has outlined the timeline under which the parent company expects the program to no longer have an impact on its financial performance (note pages 11 and 15). In other words, the date by which the program will be dead. And the answer is relatively soon. Under the bullet heading “Restructuring will show full effect in 2011 and 2012, examples…” is a line that reads “LH integration will be completed, e.g. sales, M&M…” Quite simply, they expect the integration to start soon and to be completed in either 2011 or 2012.
For folks who have accrued large piles of Diamond Club points the day of reckoning is rapidly approaching. The points are not going to disappear, but moving them into M+M raises a number of potential devaluation scenarios. I’m sitting on a rather large pile of points and I won’t be wasting any time looking for reward redemption opportunities in a hurry.
Watch Lufthansa CEO Wolfgang Mayrhuber talk about potatoes in the kitchen at Lufthansa during Star Mega Do 2009 in Frankfurt, November 2009:
Watch Thierry Antinori, Lufthansa’s Executive Vice President Marketing & Sales and Member of the Executive Board discuss bmi and Miles+More versus Diamond Club during Star Mega Do 2009 in Frankfurt, November 2009:
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Posted by Seth on May 1, 2010 under Flying |
At least American Express seems to think so. They actually shut down my card for a few minutes yesterday while I was in the midst of booking a number of reward seats using my bmi account.
Yes, it is the first time I’ve actually spent money with bmi as it was the first time I actually redeemed some of my miles there. And, yes, it was three transactions over a two day period, covering four tickets of which none were in my name. So I cannot say that I really blame them. But it was somewhat awkward when the agent I was speaking to via Skype informed me that the transaction was denied. Fortunately my cell phone was ringing at the exact same moment – and I decided to take the call from an unknown number – with a call from the fraud department at AmEx. It was all touch-tone menus to get through and it only took a couple minutes to clear up the confusion, but it was definitely interesting.
As an added bonus, they were nice enough to send an email late yesterday with some additional details:
Dear Sir:
To protect our Cardmembers, we regularly monitor accounts for possible fraudulent activity. On occasion, we contact our customers to verify certain charge attempts. Please review the charge attempt(s) referenced below. Please remember that some transactions, including those at gas stations, hotels and car rental merchants are pre-authorized before the final sale. The amount shown below may not reflect the exact amount of your final transaction.
If we have already reached you and discussed the charge attempts below, please disregard this email, as the concerns have already been resolved.
04/30/10 $168 British Midland Airways
The charges all went through and the tickets have all been issued. And I’m only a little sad that they are all tickets for other people to use. I guess I’ll have to be a bit more cautious with bookings going forward, or at least make sure I answer the call when AmEx is trying to verify things.
Posted by Seth on April 9, 2010 under Trip Reports |
File this week’s mileage run under “it seemed like a good idea at the time.” And it mostly still does, though the more I look at my itinerary and the timing on some of the flights the more I’m questioning my sanity. A total of more than 17,000 miles flown and the calculator says a hair under 100,000 bmi Diamond Club points earned. Not bad for a few days in the air and less than $500 in total airfare. Oh, and almost all of it is in first class. But, like any good story, there’s more to it than that.
The trip starts this morning with a positioning flight from Newark to Minneapolis, via Milwaukee. I think I’m earning a few points for my Delta SkyMiles account on these flights but I’m not positive. I’m also not too worried about it. The flights are short and the ticket was cheap. Plus, it is my first time flying on Midwest – way too late to get the classic experience, but better late than never – and a couple new lines for my map.
Tomorrow the real meat of the trip starts. A trip from Minneapolis to Spokane, Washington, routed via Chicago, New Orleans and Denver. The return on Sunday routes via Denver and Houston before finishing up in Chicago. I’m stopping in Chicago on Sunday night – and giving up a few miles – because bright and early on Monday morning I’m headed back to Spokane, this time on US Airways and via Phoenix.
Monday afternoon I actually stop flying for 26 hours and take advantage of the positioning to visit Idaho and play a round of golf at the Coeur d’Alene Resort. The course is supposed to be beautiful. Hopefully it still is when I’m done with it on Tuesday morning. I’m driving that afternoon and I’ve got an 8:40am tee time so I’ll probably be sober for the round, too. It has been a while since I’ve played golf and even longer since I did it without a few beers. Should be interesting.
Tuesday afternoon the crazy flying starts right back up, with Spokane – Chicago via Phoenix. Wednesday morning, about 6 hours after I get to Chicago, I turn around and do the Chicago-Phoenix-Spokane-Phoenix-Chicago run all over again. A 17 hour day of flying that should pretty much push me over to the top in terms of insanity. That wraps up the bmi earning for the week and is 98,738 Diamond Club points, give or take a few.
Finally, Thursday morning I fly Midway – LaGuardia on Delta. That one segment should earn me about 20,000 points thanks to the fly together bonus scheme Delta is running right now.
That was supposed to be the end of my travel week. Then I got a call from a potential client about a sales call in Maine on Friday. So Thursday night, after swapping out my suitcase at home, I get JFK – Portland, ME. I think I’m coming home on Saturday by train. That adds up to 17,466 miles flown according to the Great Circle Mapper.
All in all, a pretty ridiculous schedule but also a lot of potential for fun. And it could have been worse. At one point I had a trip to Germany for the day penciled in on Thursday night/Friday rather than Maine.
Up, up and away…..
Tags: bmi, Chicago, Delta, Denver, frequent flyer, Mileage Run, Minneapolis, New York City, points, United, US Air
Posted by Seth on January 29, 2010 under News |
Continental Airlines announced this morning that they will be increasing service between London and their Newark hub starting this summer. The increases – up to four daily departures beginning at the end of March and five daily beginning at the end of October – will be mostly operated by the carrier’s Boeing 757-200 aircraft; one of the daily flights will remain on the 777-200s.
In addition to the increased frequencies, Continental has committed to operating all these flights with their new fully flat Business Class product, effective June 1, 2010. It is the first time in recent memory that Continental has committed to including a specific product that only exists on a subset of its fleet on a specific route. The carrier generally avoids such commitments since they generally cycle their planes through their route network very aggressively rather than dedicating specific planes to specific routes. They get increased utilization from the planes but it also increases the troubles when they have mechanical issues and it prevents planes from being dedicated to routes.
The original timeline for the new lie-flat BusinessFirst seats is actually pretty slow; the 777s and 757s aren’t scheduled to be completed until mid-to-late 2011. But two 777s were ferried to Hong Kong – the site of the retrofits – recently increasing the speed of the deployment. And the 757s can be cycled through the upgrade pretty quickly as well. This is good news for passengers as it means getting the new product out into the fleet faster. The increased service also means more options for customers who are delayed in getting to Newark on connecting flights and more opportunities for connections to London-based Star Alliance partner bmi.
It is also worth noting that the increase in service is coming from Newark rather than the other potential option: Cleveland. Continental has previously run seasonal service to London from the Hublet but that was cut at the end of last summer. Rather than reinstating it there this year’s increase is going to Newark. This speaks to the increased flexibility of having the 757 in Newark and to the higher demand in Newark versus that of Cleveland. The good news for the folks there is that they have a lot of options (ORD, IAD, YYZ, YUL, etc.) that allow them to avoid connecting in Newark if they choose thanks to partners.
Here’s what the new schedule will look like:
Effective March 27, 2010, the airline’s Heathrow schedule will be as follows:
To London/Heathrow
New York/Newark CO18 9:00 a.m. 9:20 p.m. Daily 757-200
New York/Newark CO28 6:40 p.m. 6:45 a.m.+1 Daily 777
New York/Newark CO112 7:20 p.m. 7:40 a.m.+1 Daily 757-200
New York/Newark CO110 8:00 p.m. 8:20a.m.+1 Daily 757-200
Houston CO34 3:45 p.m. 6:55 a.m.+1 Daily 777
Houston CO4 6:25 p.m. 9:35 a.m.+1 Daily 777
From London/Heathrow
New York/Newark CO29 10:25 a.m. 1:15 p.m. Daily 777
New York/Newark CO113 10:50 a.m. 1:55 p.m. Daily 757-200
New York/Newark CO111 12:05 p.m. 3:15 p.m. Daily 757-200
New York/Newark CO19 6:30 p.m. 9:40 p.m. Daily 757-200
Houston CO35 8:40 a.m. 12:40 p.m. Daily 777
Houston CO5 11:40 a.m. 3:50 p.m. Daily 777
Effective Oct. 30, 2010, Continental’s Heathrow schedule will be as follows:
To London/Heathrow
New York/Newark CO18 9:00 a.m. 9:20 p.m. Daily 757-200
New York/Newark CO28 6:25 p.m. 6:20 a.m.+1 Daily 777
New York/Newark CO112 7:15 p.m. 7:25 a.m.+1 Daily 757-200
New York/Newark CO110 9:20 p.m. 9:25 a.m.+1 Daily 757-200
New York/Newark CO114 10:10 p.m. 10:15 a.m.+1 Daily 757-200
Houston CO34 3:50 p.m. 6:50 a.m.+1 Daily 777
Houston CO4 6:35 p.m. 9:35 a.m.+1 Daily 777
From London/Heathrow
New York/Newark CO115 8:40 a.m. 12:05 p.m. Daily 757-200
New York/Newark CO29 10:30 a.m. 1:30 p.m. Daily 777
New York/Newark CO113 11:15 a.m. 2:45 p.m. Daily 757-200
New York/Newark CO111 12:35 p.m. 4:05 p.m. Daily 757-200
New York/Newark CO19 6:00 p.m. 9:30 p.m. Daily 757-200
Houston CO35 9:20 a.m. 1:40 p.m. Daily 777
Houston CO5 11:40 a.m. 4:05 p.m. Daily 777
Posted by Seth on January 18, 2010 under frequent flyer, News |
It has been barely six weeks since the new management team stepped in at bmi, the British carrier that Lufthansa took full ownership of several months ago. But the new management team hasn’t wasted any time in making rather drastic changes to the airline, its service offerings and its frequent flyer loyalty program. First there were the cuts to the mid-haul service and the announcement that the Airbus A330s would be returned after the lease expired in early 2010. Then there were the announcements of the Dublin crew base closures and cuts to the service between that city and London. And then they started strictly enforcing some of the previously unenforced rules of their loyalty program, trimming a bit of value out for folks looking to redeem in premium cabin service.
Today’s announcement, however, seems to be a rather major milestone in the efforts to completely reform the carrier into less of a stand-alone brand and into more of a regional feeder carrier. As of January 27, 2010 – only 10 days out – the carrier is cutting business class service on all its domestic UK and Dublin flights, switching to an economy-only product.
They will be introducing “Flexible Economy” fares as part of the cuts. These fares seem to be comparably expensive – less the APD tax differences – and earn the same Diamond Club miles as the business class seats did. They come with complimentary snacks and drinks and seats in the front of the plane. They even include access to lounge facilities in most destinations. In other words, they’re just like the business class seats used to be but without the name “business class” attached.
So roughly the same product with a slightly different name probably shouldn’t raise too many red flags for most folks, right? Well, except for the few very loyal domestic bmi customers you’d be right. The perks being cut affect the few customers who were generally paying more to fly on bmi than on competitors based on the benefits that the program offered in the form of upgrades and free snacks on the flights, two things that used to be a big part of the elite benefits for those flights. They’re gone now and that leaves a lot of customers wondering where the benefits are for the increased spend.
Ultimately this actually seems like it is the right move for the carrier to make. The service wasn’t really anything like an actual business class product so at least they won’t have disappointed customers who thought they were buying one thing and end up get something rather different. And the “out-the-door” price of the flights drops by about £20 thanks to the APD cut. That’s going to work out well for them from a competitive pricing perspective. But it is also yet another in a series of recent changes that have slowly chipped away at the value of the bmi product and loyalty program. It isn’t much of a surprise that this is happening – Lufthansa is in charge now and they actually want to change the carrier into a profitable organization – but it also raises some concerns about what may be just around the corner for folks holding a lot of Diamond Club points. They’re almost certainly going to become Miles & More points sooner or later and the pace of these other changes suggests that the case is likely to be sooner.
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Posted by Seth on November 25, 2009 under News |
There was a somewhat surprising announcement out of London this morning from regional airline bmi: they’re making some rather significant cuts to their fleet, destinations and staffing levels. There will be a loss of nine aircraft in total – over 25% of the fleet. Two of the planes beign removed from the fleet are A330s. This essentially kills any chance of longhaul service coming back to the bmi fold.
Destinations being cut include Kiev, Ukraine; Tel Aviv, Israel, Brussels, Belgium and Amsterdam, Netherlands. The Brussels route will be picked up by Star Alliance and Lufthansa Group partner Brussels Airlines. There is no indication that the other destinations will see service restored via a partner or other means. Most of these cuts take effect in the second week of January 2010.
And then there are the job cuts. The carrier expects to trim about 600 employees from their ranks and did not rule out additional cuts in the future. Not good at all for those affected by these cuts.
Looking past the cuts there is a rather glaring question out there: What is left of bmi? Sadly, the answer seems to be not all that much. They still hold a ton of slots at London’s Heathrow airport but even the value of those is dropping lately. Still, with the carrier now quickly rolling into the fold of the Lufthansa group (the new CEO either just started or is starting very soon) it makes a decent amount of sense to shift what few viable assets there are around in the organization to places where they make the most sense. Sure, bmi still offers a reasonably competitive regional network around the British Isles and Ireland, and they also have some decent coverage into the Middle East and former Soviet states. And they’ve got pretty decent connections from Heathrow to other Star Alliance partners. But they’re still a small fish in a big pond and having trouble remaining competitive.
Could the carrier remain as a holding company for the slots, slowly doling them out to other airlines in the Lufthansa group (or selling them for real money)? Few to zero direct operations but most of the routes would still be covered and customers would still have options within the alliance.
Things aren’t looking particularly great over at Donnington Hall. They haven’t been for a while now and it doesn’t seem that they’ll be turning a corner anytime soon. Not good at all.
I’m not panicking about my stash of points in their program. Yet. But I am looking at cashing in a couple redemptions sooner than not just to hedge my bets on their rather advantageous reward chart. The points won’t just disappear but the Miles+More scheme isn’t as rewarding for me.
