AIL to rationalize Loganair, BMI regional's operations

Airline Investments Limited (AIL) has announced plans to rationalize operations at its recently acquired Loganair (LM, Glasgow Int'l) and bmi regional (BM, Aberdeen Dyce) subsidiaries.

Under the plan, bmi regional is to relocate its engineering facilities to one of its primary hubs, Bristol Int'l, where AIL is proposing to acquire hangar space to accommodate the airline's Embraer Regional Jet fleet. In addition, bmi is looking to consolidate all its headquarters under one location at East Midlands in a bid to enhance its UK presence. For its part, Loganair would then take over bmi regional's current hangar at Aberdeen Dyce Airport thus allowing both carriers to focus on their respective core home markets.

"Bristol Airport, a hub that has invested GBP120 million (USD182 million) in expansion over the past five years, continues to offer bmi regional the necessary capacity for potential future growth," AIL Group CEO Peter Simpson said. "By dedicating hangar space and expanding other services there, and by dedicating hangar space to Loganair in Aberdeen, we will continue to maximise growth opportunities and strengthen our presence in established markets.”

While the proposed changes will enhance cost efficiencies across AIL, Simpson did warn that some redundancies may occur as a result of the closure of bmi's MRO operations at Aberdeen.

"All options will be explored through consultation to minimize impact on positions, but it is possible that an estimated 80 Aberdeen-based roles may be affected as a result of the proposals outlined today," he said in a prepared statement. "The bmi pilot and cabin crew base at Aberdeen, together with the scheduled services to Bristol, Norwich, Oslo Gardermoen, and Esbjerg are unaffected by this announcement."