Is this the beginning of the end for bmibaby?

Following on from yesterday’s news that Lufthansa can’t find a suitable buyer for bmi, we’ve had confirmation today that jobs are going to be axed, and that routes will be curtailed at Birmingham, Manchester and Cardiff.

So, is it wise for bmibaby to concentrate their efforts on one large base at East Midlands airports. They say that they want to concentrate on ‘growth routes’, but with growth comes competition, and Ryanair are already very well established at Castle Donnington. Right now, can bmibaby really push themselves as the ones who offer a ‘more pleasant’ experience over Ryanair’s cut-throat service, or will customers continue to vote with their wallets and choose the airline which gives them the cheapest fees? When going after business passengers, it is much easier to play on offering services which take people closer to where they want to go, but is this so important for the leisure passenger – especially when East Midlands airport itself is playing a hybrid game of serving the three cities of Nottingham, Leicester and Derby, and also trying to poach passengers from Birmingham, without being directly adjacent to any of these cities.

Easyjet might be out of the way at East Midlands, but there will have been obvious reasons why they made a commercial decision to pull out. Baby reducing their presence at Manchester leaves room for Jet 2 or Easyjet to add more services, whereas Ryanair and Flybe will swoon over any signs of weakness at Birmingham, and leave tiny with very little opportunity to come back in once the economy starts growing again. As for Cardiff? Not exactly Ryanair’s favourite airport a few years ago, but if baby reduce their presence there, Cardiff airport operators will have many more reasons to do a deal with Ryanair.

This scenario could easily see bmibaby exposed as a one-airport operator within a few months, with very few other places to go to. It would then be only a matter of time before Ryanair came in and made a pincer movement to finally kill off baby for good.

Will we see more cheap flights to Spain if visitor numbers are falling?

According to today’s Times, in February the number of British tourists heading to the Spanish Costas was down almost 1/4, compared to the same month last year. Should this mean greater availability of cheap flights to Spain as airlines struggle to fill seats?

For the time being, that doesn’t seem to be the case, at least not with Ryanair. Scan through any of their lists of special offer flight prices (today’s cheap flights are £5 inclusive of all compulsory taxes and charges), and you will see that once you get to Alicante flights, the price rises to at least £27. Some special offers are available to Girona and Reus, but flights to destinations such as Malaga, Murcia, Palma and Tenerife are all in the expensive bracket.

Meanwhile, on the plus side, easyJet has announced that it will increase frequencies on its flights from Manchester to Alicante, Malaga and Tenerife. The best prices we found on easyJet’s flights from Manchester to Malaga in April were £66 return — not quite the bargain basement that Ryanair offer to some other destinations, but still very reasonable.

By comparison, Bmibaby have cheap flights to Malaga from Cardiff for £70 return in mid-April (16th to 23rd).