FlyBMI

[stopitandtidyupp]

I despair according to my Mother they are just using Brexit as an excuse.

They are in the wrong for thieving money when they couldn't make good on the deal.

It's the price of diesel that caused it and Brexit is a poor excuse.

It's like talking to a brick wall.

This is their actual final press release. They make it clear that regional airlines in particular are facing a tough environment, but that Brexit pushed them over the edge in multiple ways.

“It is with a heavy heart that we have made this unavoidable announcement today. The airline has faced several difficulties, including recent spikes in fuel and carbon costs, the latter arising from the EU’s recent decision to exclude UK airlines from full participation in the Emissions Trading Scheme. These issues have undermined efforts to move the airline into profit. Current trading and future prospects have also been seriously affected by the uncertainty created by the Brexit process, which has led to our inability to secure valuable flying contracts in Europe and lack of confidence around bmi’s ability to continue flying between destinations in Europe. Additionally, our situation mirrors wider difficulties in the regional airline industry which have been well documented.

“Against this background, it has become impossible for the airline’s shareholders to continue their extensive programme of funding into the business, despite investment totalling over £40m in the last six years. We sincerely regret that this course of action has become the only option open to us, but the challenges, particularly those created by Brexit, have proven to be insurmountable.

I actually read something similar to her off a news site. She would not have it.

Her response to Dyson, Nissan and ford

' well if that the way they feel we are better off without them. They can join the old boys club.

well if that the way they feel we are better off without them.

No point in aggravating yourself, she'll have a similar argument for every point you raise.

I don't suppose the fact that planes don't use diesel will help your case.

www.ainonline.com/aviation-news/air-transport/2019-02-05/germania-halts-operations-and-files-insolvency

Not just Flybmi:

05 FEB 2019 Germania's bankruptcy filing is the latest in a series of airline failures across Europe in recent months, including Primera Air, VLM in Belgium, Cobalt in Cyprus, SkyWorks in Switzerland, and Small Planet Airlines.Ryanair CEO Michael O’Leary, speaking to analysts on the company’s third-quarter results call on Monday, said he expects more closures and airline failures in 2019 due to overcapacity in the European market, which is causing continued fare weakness.There is “idiotic loss-making capacity out there in the marketplace,” he said, warning that the excess capacity will persist in the summer unless there is a more meaningful take out of short-haul capacity

I don't suppose the fact that planes don't use diesel will help your case.

She probably won't believe me.

Juells I think you are right sadly.

To be honest I know a lot of people who haven't booked European holidays for this summer because of worrying about brexit.

They're either staying in the UK or going out of Europe. Or waiting to see what happens in march. So bmi may well have seen a fall in bookings.

They're either staying in the UK or going out of Europe. Or waiting to see what happens in march. So bmi may well have seen a fall in bookings.

Exactly so caused by Brexit. It's just so frustrating the down right denial.

Thing is leavers have been taught to respond to challenges in this way. Politicians with no counter argument just say 'project fear' end of conversation, there is nothing you can say to convince them. Look at how few Leavers have changed their minds even now, in the light of overwhelming evidence of just how bad Brexit will be and already is. Even Aaron Bank said Remainers can have the facts, Leave doesn't need them.

FlyBMI had been running their planes with an average of 20 passengers per flight when Ryanair and Easyjet run flights at over 90% capacity. They have been losing £75K a day!
So I would say there was definitely something wrong with their business model that you can hardly blame on Brexit which hasn't happen yet don't forget.

With any large negative economic event like the Brexit uncertainty, the weakest businesses will fold first.

What is so worrying is the strong businesses sounding alarm bells and relocating to other countries. The brick walls need to start thinking.

What is so worrying is the strong businesses sounding alarm bells and relocating to other countries. The brick walls need to start thinking.

Which would have been a better argument and a discussion than her total denial.

People don't not like to admit that they are wrong. This is why a second referendum worries me, sadly

On the other hand, I'm happy to admit I'm wrong. My post above is wrong.

People don't like to admit that they are wrong

you can hardly blame on Brexit which hasn't happen yet don't forget

Businesses plan. So do people. So something that hasn't happened yet can absolutely affect things. The car companies have to plan years in advance for example. The damage is already done there.

Also Brexit hit the pound a couple of years ago now.

FlyBMI had been loss making for years. When IAG bought British Midland from Lufthansa in 2012, they didn't want the regional part.

So whilst Brexit was probably the final nail in the coffin, it's not been in a good place for a long time.

Also Brexit hit the pound a couple of years ago now.

And jet fuel is traded in dollars I believe, and the pound has weakened against the dollar since 2016.

On the news just now an expert in aviation said there were many factors involved in the recent collapses of budget airlines (Air Berlin, Germania several others and now sadly Bmi. Norwegian may be the next to go apparently. He gave as the main reasons EU imposed taxes on aviation fuel and dismissed Brexit as a factor. Dr. Stephen Wright, Aviation Lecturer, Leeds Uni.
I guess there are too many airlines offering rock bottom prices that they cannot make a profit on now that there is more taxation on aviation fuel. Fare prices will have to rise - but on this I do agree with the EU - you do have to tax pollution for the sake of the environment.

There are no taxes on aviation fuel (by international convention) EU or otherwise

@Doubletrouble99 FlyBMI was particularly exposed to Brexit as one of it main revenue earners was charter work flying from Hamburg to Toulouse for Airbus. This could have come to an end because of Brexit as only EU based airlines would be allowed to fly intra Europe.

@Millyonthe
www.thetimes.co.uk/article/should-aviation-fuel-be-taxed-07nc8wnmzmm

There are no EU taxes on aviation fuel

SoloD - Berxit hasn't happened yet so your presumption is wrong. Airbus are still flying back and forward to the EU.

FlyBMI had been running their planes with an average of 20 passengers per flight when Ryanair and Easyjet run flights at over 90% capacity.

Do you have a source for that? Or are you dividing the number of flights FlyBMI made with the number of passengers carried, as they were a cargo and mail carrier as well, so many flights would not have had any passengers - hence a low average?

Berxit hasn't happened yet so your presumption is wrong.

But FlyBMI specifically stated that Brexit uncertainty led to them being unable to secure contracts going forward. I mean, if you were looking to award a contract, would you go with a British flag carrier - with the risk of disruption from April 2019 - or one based in the EU?

SoloD
@Millyonthe www.thetimes.co.uk/article/should-aviation-fuel-be-taxed-07nc8wnmzmm
There are no EU taxes on aviation fuel

Apologies SoloD. My mistake. I know absolutely nothing about aviation fuel taxes and I should not have posted someone else's opinion I half heard on the news. I get annoyed when unprofitable businesses blame Brexit for their inevitable demise - but that's no excuse for my misinformation.