Virgin are not the only ones.......
Dear Colleague
I am writing this letter as the commercial aviation industry faces its most serious downturn for many years. The crisis is potentially more profound and may be deeper and last longer than the last similar event in 2001.
This has been caused, as we know, by the global economic downturn which started with the banking crisis in western economies and has already precipitated a full scale recession in the UK, our home market.
bmi is not immune to these events and, as I have previously advised you, 2008 was a very difficult year for the company which has given us our poorest trading results in recent times. This situation is not unique to bmi as many carriers in the industry are posting losses creating many redundancies with some airlines going out of business.
These are the implications for bmi. The current years trading will again be difficult and the Board at its regular meeting yesterday had to consider the most appropriate actions to ensure the airline remains competitive.
Lufthansa has made it clear that it is up to the management of bmi to take all the necessary steps to ensure the recovery of bmi and they will support the management in their task.
I regret to say that although I had earlier indicated that the agreed pay award for 2009 would be implemented, it is now the wisest and most sensible decision not to pay this award and to impose a pay freeze for the current year in the long-term interests and benefit of all our staff.
The Board has decided that its priority is to avoid redundancies where possible. Freezing pay enables us to limit to the minimum those we may need to make redundant.
Nevertheless it must be made clear that should there be any further deterioration of business beyond our forecast then, at that time, we must be prepared for further difficult decisions. You can be assured I will take whatever steps necessary to keep the airline viable and competitive.
I am sure this letter will be disappointing for you but I have always promised to communicate with you openly and honestly. It has been our best endeavour to pay the 2009 award but I hope you will nevertheless support the decision which has had to be made.
regards
Nigel Turner
chief executive officer
Dear Colleague
I am writing this letter as the commercial aviation industry faces its most serious downturn for many years. The crisis is potentially more profound and may be deeper and last longer than the last similar event in 2001.
This has been caused, as we know, by the global economic downturn which started with the banking crisis in western economies and has already precipitated a full scale recession in the UK, our home market.
bmi is not immune to these events and, as I have previously advised you, 2008 was a very difficult year for the company which has given us our poorest trading results in recent times. This situation is not unique to bmi as many carriers in the industry are posting losses creating many redundancies with some airlines going out of business.
These are the implications for bmi. The current years trading will again be difficult and the Board at its regular meeting yesterday had to consider the most appropriate actions to ensure the airline remains competitive.
Lufthansa has made it clear that it is up to the management of bmi to take all the necessary steps to ensure the recovery of bmi and they will support the management in their task.
I regret to say that although I had earlier indicated that the agreed pay award for 2009 would be implemented, it is now the wisest and most sensible decision not to pay this award and to impose a pay freeze for the current year in the long-term interests and benefit of all our staff.
The Board has decided that its priority is to avoid redundancies where possible. Freezing pay enables us to limit to the minimum those we may need to make redundant.
Nevertheless it must be made clear that should there be any further deterioration of business beyond our forecast then, at that time, we must be prepared for further difficult decisions. You can be assured I will take whatever steps necessary to keep the airline viable and competitive.
I am sure this letter will be disappointing for you but I have always promised to communicate with you openly and honestly. It has been our best endeavour to pay the 2009 award but I hope you will nevertheless support the decision which has had to be made.
regards
Nigel Turner
chief executive officer
