BMI to axe 1500 jobs
UK airline BMI British Midland is to axe 1,500 jobs out of its 4,500 workforce by 2005, in a major cost-cutting exercise labelled blue sky, designed to save 100 million pounds per year.
BMI, which owns a fleet of 41 aircraft, has pledged the cuts will not necessitate redundancies, stressing jobs would go through ‘natural wastage.’
Chief executive Austin Reid said: ‘For the avoidance of doubt we have no intention of axing jobs either now or in the foreseeable future.’
Despite carrying 7.8 million passengers in 2002, the September 11th atrocities, global economic stagnation, the Iraq war and travellers’ fears over contracting killer disease SARS have all impacted deleteriously on no frills airlines.
BMI has undoubtedly toiled. It made losses of 19.6 million pounds in 2002, despite profits of 12.4 million pounds in 2001.
The announcement yesterday will intensify rumours that BMI will merge with Sir Richard Branson’s Virgin Airways.
