"Chinny Raccoon" (chinnyraccoon)
02/16/2019 at 13:38 • Filed to: Airlines
0
5|
"Chinny Raccoon" (chinnyraccoon)
02/16/2019 at 13:38 • Filed to: Airlines | 0
| 5 |
BMI Regional, which in some ways is the last piece of the British Midland group, with it’s origins dating back to 1938 appears to be the latest U.K. airline to run into problems. Flights canceled and aircraft returning empty to Norwich, a common location for storage. Nothing official yet though. Updated just after I posted this, they’ve now filed for Administration and ceased operations.
A spokesperson for flybmi said:
“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.
“Our employees have worked extremely hard over the last few years and we would like to thank them for their dedication to the company, as well as all our loyal customers who have flown with us over the last 6 years.”
Bmi Regional employed a total of 376 employees based in the UK, Germany, Sweden and Belgium.
Not a good time for the smaller airlines of the U.K., with the other main regional, Flybe, also having an iffy time. A rescue deal is in the works for them, potentially becoming part of the Virgin group.
Flybmi operate 17 Embraer 135 and 145s, coving routes in the U.K. and Mainland Europe. In 2015 they became part of the same group as Loganair, a Scottish regional.
gmporschenut also a fan of hondas
> Chinny Raccoon
02/16/2019 at 13:48 |
|
Given how flights to the continent could be capped post brexit , i think the smaller ones will be forced out of that market, as i imagine the larger ones will outbid/lobby to gain the most .
https://www.ft.com/content/11291702-1b1a-11e9-b93e-f4351a53f1c3
Spamfeller Loves Nazi Clicks
> Chinny Raccoon
02/16/2019 at 14:03 |
|
“... the EU’s recent decision to exclude UK airlines from full participation in the Emissions Trading Scheme.”
And why did they do that?
“The measures are part of the bloc’s contingency measures to minimize the worst disruption in key areas in case of a no-deal Brexit.”
But why?
“Last month, the UK government said it would that in a no-deal scenario,
the country would next year switch to meeting its carbon pricing
commitments via a tax system.”
Surely it’s just the EU being jerks?
“As the second largest emitters of carbon dioxide in Europe, British utilities are among the largest buyers of carbon permits in the ETS.”
Brexit, everyone!
|
Chinny Raccoon
> Spamfeller Loves Nazi Clicks
02/16/2019 at 16:35 |
|
It’s almost like it’s a catastrophically stupid idea.
|
Chinny Raccoon
> gmporschenut also a fan of hondas
02/16/2019 at 16:45 |
|
Yes, another part of the problem is needing to be locally owned to operate between EU countries. That’s a problem for the smaller already struggling carriers, but can be worked around for the larger ones- Easyjet has transferred a large chunk of it’s fleet to it’s new Austrian AOC.
|
gmporschenut also a fan of hondas
> Chinny Raccoon
02/16/2019 at 18:34 |
|
after the discussion on whatsapp, i went down a rabbit hole catching up on all the brexit news over the last 4 months. It is disturbing how similar the rhetoric of brexit is to current US issues. Lets just bludgeon an intricate and complex problem with a catchy phrase.