THE collapse of XL was perhaps an example of the ultimate holiday nightmare.
Those of us working hard back in the UK may have felt that being left stranded on a Caribbean island because your airline had gone bust was not all bad. After all, there are worse places to be shipwrecked. But those who ended up handing over their hard-earned cash to pay for extra hotel nights and food bills probably saw the matter a little differently.
The people affected most were those who never even made it to the airport, booking their flights with the doomed holiday firm at a time when the top brass probably knew they would not be able to honour their business. The fact that an airline or tour operator can do this and then without warning pull the plug does little for consumer confidence. Add to this how tight money is at the moment, some people may be feeling a little nervous about booking their next flight.
But according to airline industry expert John Strickland, those looking to fly from East Midlands Airport should not panic. The Castle Donington airport is served by three of the major low-cost airlines – BMIBaby, Ryanair and Easyjet.
Mr Strickland, who runs his own London-based aviation consultancy, believes the three airlines will not go the same way.
He said: “East Midlands Airport is better placed than most as it is served by the three airlines which, I believe, will survive the current troubles within the industry.
“Times are tough and there is no doubt that they will suffer like the rest, but they are large enough to take the pain. These airlines are also run extremely well and I don’t think they would allow themselves to get into a difficult situation.
“Of course, people who saw what happened with XL may have been concerned – but I don’t think there is a nervousness that it is going to happen to them. Personally, I think if they are travelling with BMI, Ryanair or Easyjet, they will be okay.”
At the moment, the problems do not seem to have put people off flying and at East Midlands Airport passenger numbers have continued to rise month-on-month.
One of the most important airlines there is BMIBaby – not only because of the routes it flies, but also because it is a local employer. The airline is part of the BMI Group based at Donington Hall and employs about 5,000 people, with about 700 of these working at Castle Donington.
BMI Group comprises three companies – BMI, its long- and mid-haul business, BMI Regional which serves UK airports, and BMI Baby, its low-cost carrier.
Although still based at Castle Donington, BMI’s main hub is London Heathrow, where it is the second largest carrier behind British Airways.
But uncertain times in the industry led to speculation earlier this week that BMI was in takeover talks with Abu Dhabi airline Etihad. BMI has refused to comment on the speculation.
Mr Strickland, who used to work for BMI, said: “I honestly do not know whether there is any truth in that story. All I know is that Sir Michael Bishop, BMI’s chairman, is the sort of person who will only talk about something when he is ready.”
There is some evidence that the pressures of fuel costs are affecting BMI. It is cutting 60 jobs among cabin crew who operate from Leeds Bradford and Durham Tees Valley airports and will also be reducing the amount of flights it runs this winter.
A spokesman said: “We can confirm that in common with many others in the industry, BMI has been critically reviewing its winter flying programmes in each of its three airline business units. Like most of its competitors it will be reducing capacity over the winter. This is in expectation of reduced demand and continuing high fuel prices.”
Its low-cost carrier, BMI Baby, will also be reducing flights and suspending some routes during winter.
The spokesman said: “BMI Baby traditionally reduces services over the winter as the demand for the sunshine routes and city breaks diminish and this year the airline has taken a more aggressive approach, with fewer frequencies and some temporary suspension of seasonal routes. Its winter schedule will also be optimised for timings.”
Another measure that the company has employed is what it calls “sensible flying”. This involves its planes flying fractionally slower than usual but still managing to remain on time.
BMI Baby has said it is working closely with airports to ensure its aircraft do not spend an unnecessary amount of time on the runway waiting for a take-off slot, where it continues to burn fuel.
The airline has also introduced tighter limits on excess baggage its aircraft carry to maximise its efficiency.
Managing director Crawford Rix says BMI Baby is well positioned to handle the challenges of rising costs.
He said: “We have always tried to be as efficient as possible but with fuel prices continuing to soar it has really focused our efforts. We have looked very carefully at every route and every mile we fly to see where we can improve efficiency.”
The airline is optimistic about the next 12 months – so much so that it has launched the first phase of its programme for summer 2009 earlier than usual. It said that it was because of demand – with more people turning to low-cost airlines to save money.
Mr Strickland: “There is a trend among the low cost carriers to announce their schedules as early as possible. There are two good reasons behind this. Firstly, competition. If they can get their schedules out before other airlines then it gives them a head start. Secondly, it helps airlines to plan ahead. If people are booking now for next summer it allows them to gauge how busy they will be – and importantly put money in the bank.
“Passengers who already know when they want to fly next year also benefit by booking this early because they get a cheaper price.”
