No Virgin merger, says BMI boss
The UK carrier BMI British Midland has reportedly rejected any talk of a merger with Virgin Atlantic as it reported heavy losses for last year. The airline lost some GBP9.8 million last year after a loss of GBP19.6 million in 2002, but claimed that it is expecting to break even in 2004. The Guardian reports the BMI chairman Sir Michael Bishop as saying that he was not planning to sell his 50.1% stake in the carrier despite “lobbying” by Sir Richard Branson. He is quoted as saying: “I’ve no comment at all to make on the views emanating from him. He is entitled to say anything he thinks he is appropriate. We are not engaged in any discussions with Virgin.” The carrier’s turnover rose some 6.6% last year, with passenger numbers up 25% to 9.4 million. Sir Michael added: “2003 was another very tough year for many in the aviation sector, with the double impact of SARS and the conflict in Iraq hitting bmi in the first part of the year. The loss of transfer traffic at Heathrow from its 13 Star Alliance partners and other interline carriers cost our business in excess of £17 million in lost revenues, and was the principal factor in delaying our return to profitability.”
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