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Record bmi loss puts a drag on new owner
Robert Lea12 Mar 2009
Heathrow's second-largest airline, British Midland group bmi, has crashed to its worst-ever losses in the year it sold out to the Germans.
Losses of almost £100 million in 2008 were blamed on surging fuel prices, the rise in airport charges at Heathrow, and big losses at struggling budget flights arm bmibaby.
The losses held back the performance of Lufthansa, Europe's largest airline, which has bought out bmi chairman and founder Sir Michael Bishop and taken control of the airline, having previously been a 30% shareholder.
The performance at bmi, after a £7 million profit the year before, will see deep cost-cutting and a 12% slashing of services including loss-making, UK domestic services.
Lufthansa reported a 64% slump in profits to €599 million (£553 million). Its great UK rival British Airways has already warned of big losses. Lufthansa's accounts also reveal it has subsidised bmi's European routes for years.
