BMI, Britain's third-biggest airline, said it will begin U.S. flights a year after the start of an agreement allowing more carriers onto trans-Atlantic routes, giving it more time to assess levels of competition and demand.
BMI was tipped to be a prime beneficiary of the "open skies" accord between Europe and the U.S. The agreement, effective from April, would allow the Castle Donington, England- based airline to begin U.S. services from London Heathrow airport, where it's the second-biggest owner of takeoff and landing slots.
"We're not going to jump in in April," BMI Chief Executive Officer Nigel Turner said yesterday in an interview at an airline-industry conference in London. "We're going to postpone our entry into the market until 2009."
Premium airline traffic may fall as much as 10 percent next year as investment banks cut corporate travel budgets, Citigroup said in a note on Nov. 27, making it tougher for airlines to exploit the new open skies regime.
BMI wants to begin U.S. flights to aid its transformation into a medium- and long-haul carrier focused on maximizing the value of its Heathrow slots.
BMI said in August it had shelved plans to begin U.S. flights in order to concentrate on other routes. Turner announced 17 new destinations including Beirut, Lebanon, and Tehran on Sept. 4, while saying the airline was still interested in flying to the U.S.