British Midland International

British Midland Airways Limited

Company type	Private (formerly)
Industry	Airline
Founded	1938
Founder	Captain Roy Harben
Defunct	2012
Fate	Acquired and merged into British Airways by International Airlines Group
Headquarters	Castle Donington , United Kingdom
Area served	Europe, Middle East, Africa, North America, Central Asia
Key people	Michael Bishop (former managing director and chairman)
Products	Passenger and cargo air transport services
Parent	Lufthansa (before acquisition by IAG)

British Midland Airways Limited—operating under the names British Midland, bmi British Midland, bmi, or British Midland International—was a British airline headquartered at Donington Hall, located in Castle Donington near East Midlands Airport. Its flight network spanned Europe, the Middle East, Africa, North America, and Central Asia, all coordinated from its principal hub at London Heathrow Airport. At Heathrow, the airline controlled roughly 13% of takeoff and landing slots and managed more than 2,000 flights weekly. From 1 July 2000 until 20 April 2012, BMI was part of the Star Alliance.

On 20 April 2012, International Airlines Group (IAG) acquired BMI from Lufthansa, subsequently fully merging it into British Airways by 27 October 2012. IAG also took ownership of BMI’s subsidiaries, Bmibaby and BMI Regional, though both were later sold off; Sector Aviation Holdings purchased BMI Regional in May 2012, which operated as "flybmi" until its closure in February 2019. Meanwhile, Bmibaby ceased operations in September 2012.

BMI possessed a CAA Type A Operating Licence, permitting it to carry passengers, cargo, and mail on aircraft configured with over 20 seats.

Origins

The airline’s roots date back to 1938 when Captain Roy Harben founded Air Schools Limited to provide training for Royal Air Force Volunteer Reserve pilots. Derby Corporation later invited Harben to oversee a new aerodrome near Burnaston, which opened as Derby Municipal Airport in 1939. During World War II, military flight training continued at this location.

In 1946, Air Schools Limited formed a holding company named Derby Aviation Limited. Following Harben’s death in 1947, E. W. Phillips assumed the role of managing director. Derby Aviation incorporated Wolverhampton Aviation, expanding its services to include charter flights, freight transportation, maintenance operations, and brokerage activities.

Flight training was discontinued in 1953 after Derby Aviation obtained a license to operate scheduled services from Burnaston and Wolverhampton to Jersey, with mandatory customs stops at Birmingham. The inaugural flight utilized a Dragon Rapide aircraft. The following year saw Wolverhampton Aviation merge into Derby Aviation, and in 1955 the airline introduced its first Douglas DC-3.

International routes commenced in 1956 with flights to Ostend and various European holiday destinations. The airline also secured a contract with Rolls-Royce to transport aero engines worldwide. In 1959, the airline division was rebranded as Derby Airways featuring a new livery and began scheduled domestic flights within the UK.

1960s and 70s

On 1 October 1964, following the acquisition of Manchester-based Mercury Airlines, the company adopted the name British Midland Airways (BMA) and shifted its base to East Midlands Airport. It introduced corporate colors of blue and white along with turboprop Handley Page Dart Herald aircraft.

In 1968 Minster Assets acquired BMA and appointed Michael Bishop as general manager in 1969. Under Bishop’s guidance, BMA expanded both domestic routes and European services. November of that year marked BMA’s entry into Heathrow with the takeover of Autair’s Heathrow–Teesside route.

The airline embraced jet aircraft in 1970 by introducing BAC One-Eleven 500s for European charter operations alongside a Boeing 707-321 dedicated to transatlantic affinity group charters. That same year, BMA became the first independent UK carrier to hire UK-based cabin crew from ethnic minorities.

After Bishop was promoted to managing director in 1972, BMA withdrew its One-Eleven jets due to unprofitable charter operations stemming from insufficient scale and lack of integration with tour operators. The carrier concentrated on regional scheduled services deploying cost-effective turboprops such as Handley Page Dart Heralds and Vickers Viscounts for short-haul routes. Starting in 1972, Boeing 707s were leased out on wet lease agreements including contracts with Sudan Airways.

On 1 November 1974, BMA inaugurated its first UK domestic trunk route connecting London Gatwick with Belfast International Airport, succeeding British Caledonian’s service on this route. This Gatwick launch made BMA unique as the only airline operating scheduled flights from all five London airports: Gatwick, Heathrow, Luton, Southend, and Stansted.

In early 1975, BMA supplied two Vickers Viscount aircraft painted in Cyprus Airways livery for Athens–Cyprus flights originating from Larnaca following the Turkish invasion of Cyprus. On 4 April that year, BMA’s Boeing 707 supported humanitarian efforts by transporting Vietnamese orphans during the Vietnam War.

From September 1976 onwards jets gradually replaced turboprops; a leased Douglas DC-9 substituted Viscounts on the Heathrow–Teesside service.

In 1978 Minster Assets sought to divest BMA; Michael Bishop led a £2.5 million management buyout supported by Californian Robert F. Beauchamp and assumed the chairmanship. That year saw a strategic exchange of routes between BMA and British Airways: BMA relinquished Birmingham–Brussels/Frankfurt services while acquiring Liverpool–Heathrow/Belfast/Dublin/Jersey/Isle of Man/Glasgow routes. By 1979 passenger numbers exceeded one million annually.

1980s and 90s

On 31 March 1980, British Midland took over the Leeds Bradford to London Heathrow service from British Airways, initially operating Viscount 800 aircraft. These were soon succeeded by DC9 15 models, and following runway enhancements at Leeds Bradford, DC9 32s became the primary aircraft, supported by DC9 15s and occasionally Viscount, Fokker F27, or BAE ATP turboprops. In 1986, a BAC1-11 400 was leased for the Heathrow route before reverting to DC9s in 1987. British Midland expanded its network from Leeds Bradford to include Glasgow, Paris CDG, and Brussels. After retiring DC9s, Boeing 737-200s became standard on the Heathrow route, later replaced by 737-300, -400, and -500 variants, followed by Fokker 100s and smaller Fokker 70s on less busy legs. Eventually, Airbus A319s became the norm for Heathrow flights, with A320s and occasional A321s deployed on higher-demand schedules. At its height, British Midland operated as many as six daily flights each way between Leeds Bradford and Heathrow; the final late-evening service utilized an Embraer 145 Regional Jet. This route was discontinued in 2009 after nearly three decades.

In 1981, the Civil Aviation Authority initially denied British Midland's application to operate Heathrow–Glasgow–Edinburgh services; however, this decision was overturned by the Secretary of State for Trade and Industry. Consequently, BMA began six daily return flights between Heathrow and Glasgow in October 1982 using DC-9 aircraft. Competing against British Airways' hourly shuttle, BMA offered lower fares coupled with full in-flight service compared to BA's no-frills offering. Building on this success, BMA introduced Heathrow–Edinburgh services in 1983 and Heathrow–Belfast flights in 1984, directly challenging BA on the UK's three busiest domestic trunk routes. In response, BA enhanced its shuttle services with improved amenities. The launch of these routes led BMA to cease Gatwick–Belfast operations, which were subsequently taken over by Dan-Air.

In 1982, British Midland collaborated with British & Commonwealth Holdings (owners of AirUK) to establish Manx Airlines and acquired a controlling 75% interest in Loganair in 1983.

October 1984 saw the retirement of the Boeing 707 fleet following extensive leasing operations worldwide.

A new livery was introduced in 1985 featuring dark blue upper fuselage and tails contrasted with light grey lower sections separated by white stripes. The airline rebranded simply as British Midland, displaying a stylized red BM logo topped with a white diamond on tail fins. This design evolved over time to darker tones but retained the original emblem.

The first fully liberalized bilateral air transport agreement between the UK and the Netherlands in 1985 enabled BMA to compete directly with BA on the Heathrow–Amsterdam route starting June 1986. This made BMA the inaugural private carrier to challenge government-owned BA on an international trunk route from Heathrow.

On 1 October 1987, British Midland introduced its Diamond Club frequent flyer programme alongside an enhanced Diamond Service business-class-style single cabin featuring full meal service and complimentary beverages for all passengers plus access to airport lounges at major UK airports. These improvements increased market share on London–Scotland and London–Northern Ireland trunk routes to approximately 30%. All fleet aircraft were named after diamonds beginning with a DC-9 titled The Tiffany Diamond. The company slogan during 2009–2010 was Better for Business.

In March 1987, Airlines of Britain Holdings (ABH) was created as a parent company for British Midland Airways and British Midland Aviation Services.

British Midland operated its last Viscount flight in February 1988 after two decades of service. That same year it became the launch customer for the British Aerospace ATP turboprop—the airline’s final turboprop type.

In 1992, British Midland led UK domestic airlines by offering vegetarian meals onboard and was among Europe’s first to do so. The following year saw introduction of Diamond EuroClass on European routes—featuring the first separate business-class cabin—priced competitively against rivals’ economy fares.

By September 1996, Diamond EuroClass extended across all domestic routes, making British Midland only the second UK airline after Jersey European Airways to provide business-class cabins domestically and the first on Heathrow trunk routes.

In 1997 ABH restructured into British Midland Plc through a de-merger. Towards the late 1990s, British Midland transitioned its fleet from Boeing and Fokker aircraft to Airbus A319/320/321 and Embraer ERJ135/145 models replacing older Boeing 737s and Fokker jets. In July 1999 it inaugurated its Training Centre at Stockley Close. That year Scandinavian Airlines System (SAS), a shareholder since 1987, divested half its stake to Lufthansa; British Midland joined Star Alliance in 2000.

BMI

In 2001, to clarify its identity and enhance global appeal, the airline rebranded as BMI British Midland, later shortened simply to BMI. The updated livery showcased a royal blue and white palette with a gradient Union flag on the tail and a lowercase BMI logo. That same year, BMI introduced the Airbus A330-200, marking its entry into wide-body aircraft and enabling expansion into US and other long-haul destinations. Due to restrictions under the 1977 Bermuda II agreement, BMI operated its US services out of Manchester instead of Heathrow, inaugurating flights to Washington Dulles and Chicago O'Hare in 2001. The Washington route was later downgraded to a Boeing 757-200 narrowbody before being discontinued in 2005.

Passenger traffic increased from 7.5 million in 2002 to 10.1 million by 2005, positioning BMI as the third-largest UK airline. Nevertheless, by early 2006, BMI experienced a decline in passenger load factors on both mainline and regional routes compared to other European competitors.

During the mid-2000s, BMI broadened its international network by launching Heathrow flights to Mumbai (2005–2006), Riyadh (2005), Moscow Domodedovo (in cooperation with Transaero Airlines in 2006), Cairo, and Amman (both commencing in 2007), thereby strengthening its presence in the Middle East. In November 2008, BMI ended all long-haul operations from Manchester and transferred its two Airbus A330s to Heathrow.

In February 2007, BMI acquired British Mediterranean Airways (BMED), gaining access to markets across Africa, the Middle East, and Central Asia. As part of this transaction, BMED's Heathrow slots were sold to British Airways for £30 million. By October 2007, BMED had been fully absorbed into BMI.

Following the European Commission's 2008 approval of secondary slot trading, BMI valued its Heathrow slots at £770 million—substantially increasing its net asset value from £12 million the previous year and enhancing its appeal as a takeover candidate.

After Lufthansa completed its acquisition of BMI in November 2009, the airline underwent operational restructuring aimed at reducing losses. This included cutting nine aircraft from the fleet and suspending Heathrow routes to Amsterdam, Brussels, Tel Aviv, Kyiv, Aleppo, Palma de Mallorca, and Venice. These changes put approximately 600 jobs at risk.

In January 2010, due to weak demand, BMI cut daily flights between Dublin and Heathrow from six to four and closed its Dublin base. By April 2010, it reinstated the full name British Midland International alongside the BMI brand to strengthen appeal among premium Middle Eastern customers.

Confronted with annual losses exceeding £100 million by 2012, BMI removed business class on domestic routes and concentrated on longer-haul international flights from Heathrow to optimize slot value. This strategy involved downsizing aircraft—replacing Airbus jets with Embraer regional planes—reducing frequencies, and discontinuing unprofitable short-haul routes such as Heathrow–Glasgow, which ended in March 2011 due to high airport charges causing monthly losses of £1 million.

BMI's final commercial flight under the "BD" code arrived at Heathrow on 27 October 2012.

In September 2023, BMI resurfaced on social media platforms hinting at plans for a new chapter rooted in its historic brand heritage. The company launched new websites and social media profiles; however, details regarding its future branding and identity remain unclear.

Overview

BMI's headquarters were situated at Donington Hall in Castle Donington, North West Leicestershire, close to Derby. Before relocating in 1982, the airline operated out of 78 Buckingham Gate, London. In 2011, the workforce at Donington Hall numbered 527 employees. After International Airlines Group acquired BMI in 2012, plans emerged to reduce staff by as many as 1,200 positions, predominantly impacting the head office team.

The airline also maintained a flight training centre located at Stockley Close Industrial Estate in West Drayton, near Heathrow Airport. Established in 1999, BMI secured a lease on this site for a duration of 50 years.

Ownership

In 1999, SAS divested half of its 40% shareholding in BMI to Lufthansa, facilitating BMI’s entry into the Star Alliance network. At that time, Sir Michael Bishop held a 50% ownership stake as chairman. Between 1999 and 2004, Lufthansa contemplated offloading its shares, while Virgin Atlantic expressed interest in acquiring them to merge with BMI. This strategy aimed to utilize BMI’s valuable Heathrow slots to bolster Virgin’s presence at the airport and compete more effectively against British Airways. The merged entity would have controlled approximately 17% of Heathrow slots compared to British Airways’ dominant 43%. British Airways opposed this merger and considered acquiring BMI itself due to its comparatively fragile financial standing. However, merger negotiations concluded without agreement by 2004, and further Virgin bids were rejected by BMI in 2006 despite Sir Richard Branson’s public support for such a combination.

In June 2007, SAS announced intentions to sell its remaining 20% stake as part of a profit improvement plan and entered talks with Lufthansa as a potential purchaser. By October 2008, Lufthansa sought full ownership by acquiring Sir Michael Bishop’s 50% share along with its existing 30%. The European Commission granted approval for the acquisition in May 2009, permitting Lufthansa to exercise majority control through a UK-based holding company due to restrictions on landing rights. Lufthansa finalized the purchase of Bishop’s shares in June 2009 at a price below the original agreement.

Sale to International Airlines Group

Facing persistent financial losses, Lufthansa declared in September 2011 its intention to divest BMI. Virgin Atlantic was considered a prospective buyer; however, by November, International Airlines Group (IAG), parent company of British Airways, reached a preliminary agreement to acquire BMI. Virgin Atlantic submitted an offer near £50 million but was outbid by IAG’s £172.5 million proposal. Virgin hoped regulatory considerations might influence Lufthansa’s decision but ultimately lost out.

The acquisition raised IAG’s share of Heathrow slots from 45% to 53%. Richard Branson opposed the transaction and appealed to European competition authorities for intervention. The deal permitted Lufthansa to separately dispose of BMI Regional and Bmibaby, including price adjustments should Bmibaby not be sold promptly. Lufthansa retained responsibility for the BMI pension scheme after the sale but subsequently entered the Pension Protection Fund following regulatory disapproval.

Approval for the sale was granted in March 2012 on condition that IAG surrender control over 14 daily Heathrow slots—12 were fully transferred while two were leased out. Virgin Atlantic acquired these slots enabling it to initiate domestic UK services from BMI’s former base at Heathrow Terminal 1. Ownership of BMI officially passed to IAG at midnight on 19 April 2012. Following this transition, BMI exited Star Alliance; however, loyalty benefits remained available until 31 May 2012.

BMI’s Diamond Club frequent flyer program continued for members holding a BMI credit card, permitting conversion of points into British Airways’ Executive Club Avios on a one-to-one basis; all other members were required to transfer their membership to the Executive Club.

As of August 2017, British Midland Airways Limited remains registered as an active company at British Airways’ Waterside headquarters located in Harmondsworth.

Subsidiaries

In 2002, BMI introduced a budget carrier named Bmibaby, which utilized Boeing 737 aircraft that became surplus due to BMI's transition to an exclusively Airbus fleet. Bmibaby operated flights connecting primary and secondary European airports from its bases at East Midlands, Manchester, and Birmingham Airport until IAG ceased its operations in September 2012.

BMI also provided regional air services through its subsidiary BMI Regional, based in Aberdeen. In May 2012, BMI reached an agreement to sell BMI Regional to the Scottish investment group Sector Aviation Holdings, with the transaction finalised on 1 June 2012. BMI Regional continued to fly under BMI's brand until 27 October 2012, when it transitioned into an independent airline.

Business trends

Below is a summary of key financial and operational data for BMI during its final years (including Bmibaby), covering fiscal years ending 31 December. Initial financial reporting was in pounds sterling, shifting to euros following full integration into Lufthansa on 1 July 2009.

		2005	2006	2007	2008	2009	2010
Revenue	(£m)	869	905	1,023	1,046	↓
	(€m)					541	896
Profit before tax	(£m)	10.0	29.7	15.5	−155.6	↓
	(€m)					−44	−117
Employee count						4,346	3,613
Passenger numbers (millions)		10.5	10.5	10.6	10.0	n/a	6.2
Load factor (%)		data not available
Fleet size (year-end)						67	59

Codeshare agreements

BMI established codeshare agreements with a broad range of airlines to expand its network and strengthen market presence. Its partners included:

Aegean Airlines Air Canada Air China Air France Air India Air Malta Air New Zealand All Nippon Airways Asiana Airlines Austrian Airlines

Avianca Azerbaijan Airlines Blue1 British Airways (Merger partner) Brussels Airlines Continental Airlines Croatia Airlines Egyptair Ethiopian Airlines Etihad Airways

Gulf Air LOT Polish Airlines Lufthansa Malaysia Airlines Oman Air Qatar Airways Royal Brunei Airlines Scandinavian Airlines South African Airways Spanair

SriLankan Airlines Swiss International Air Lines TAM Airlines TAP Air Portugal Thai Airways International Transaero Ukraine International Airlines United Airlines US Airways Virgin Atlantic

Final fleet

Following BMI's acquisition by IAG, its aircraft were absorbed into British Airways' fleet. Except for the three Airbus A330s, which were returned to leasing companies, all planes were repainted with BA’s livery. At its peak, the Civil Aviation Authority registered the following fleet composition:

British Midland International fleet

Aircraft type	In service	Orders pending	Seating capacity (passengers)			Remarks
			J	Y	Total capacity
Airbus A319-100	11	—	—	138	138
			—	144	144
Airbus A320-200	7	—	22	102	124
			20	108	128
			—	162	162
Airbus A321-200	7	—	31	118	149
Airbus A330-200	3	—	42	156	198	- 42 36 198 232

Former fleet

BMI's historical fleet included the following types of aircraft:

 McDonnell Douglas DC-9-15  5  1978  McDonnell Douglas DC-9-32  9  1984  1996  Embraer ERJ-145  8  1999  2001  Fokker F27 Friendship  17  1980  1990  Fokker 70  3  1995  2002 Transferred to KLM Cityhopper  Fokker 100  6  1994  2005  Handley Page Dart Herald  6  1965  1977  Miles M.17 Monarch  2  1946  1953  Miles M.57 Aerovan  1  1948  1951 Miles M.60 Marathon                                                                  Used solely for spare parts Miles M.65 Gemini                                                                                                                                                                                                                                                                                                                                                                                                                                                                     One aircraft leased from Skyways and Swedair in the year '94; four others operated by Business Air until '98 Shorts 330 1 1981 1984 Shorts 360 5 1983 1989 Vickers Viscount Series_700 and Series_800 28 (6 of Series_700,22 of Series_800) 1967–69 1977–88

British Midland International previous fleet

Aircraft	Quantity	Entry into Service	Withdrawal from Service	Remarks
ATR 42-300	1	2004	2004	Operated on lease from Air Atlantique
Airspeed Consul	1	1958	1963
Auster Autocrat	2	1946	1966
Avro Anson	3	1955	1965
BAC One-Eleven Series 300AX	1	1984	1990
BAC One-Eleven Series 500FJ	3	1970	1974
British Aerospace ATP	3	1988	1993
British Aerospace 146-200	6	1994	2003
British Aerospace Jetstream 41	1		1996	Leased from Manx Airlines
Beechcraft Baron	2	1981	2012
Boeing 707-320	9	1970	1978
Boeing 707-320C	4	1978	1986
Boeing 737-200	3	1986	1988
Boeing 737-300	13	1987	"Retired in 2003"
Boeing 737-400	8	"In service from late 1980s"	"One destroyed in Kegworth air disaster#Flight_92"
Boeing 737-500	13	1993	Retired in early 2000s
Boeing 757-200	1	2005	2005	Leased from Loftleidir Icelandic
	3	2008	2011	Leased via Astraeus Airlines
Boeing 767-300ER	1	2007	2007	Operated on lease from Arkefly
Canadair North Star	5	1961	1967
de Havilland DH.89 Dragon Rapide	7	1948	1957
de Havilland DH.104 Dove	1	1961	1962
de Havilland Canada Dash 7	3	1990	1993
Douglas C-47 Skytrain	8	1958	1969
Douglas C-54 Skymaster	1	1969	1969	Leased from Invicta International Airlines
McDonnell Douglas DC-9-14	4	1983	1995

Onboard service

For flights departing from London Heathrow to destinations within the UK and Ireland, passengers in economy class had the option to buy meals, whereas those in flexible economy were provided with complimentary snacks and beverages. Services operating across Europe and to locations such as Tripoli, Tunisia, and Morocco featured a dual-class arrangement: business class passengers enjoyed a hot three-course meal, while economy travelers received complimentary food and drinks. Similar two-tier service was available on mid-haul and Freetown routes, where business class included a three-course meal along with in-flight entertainment, and economy class passengers were served a hot meal accompanied by free drinks. On Airbus A330 flights to Saudi Arabia and Israel (up until 2010), the cabins were divided into business, premium economy (exclusive to Israel), and economy classes, all offering complimentary meals and beverages.

Loyalty programme

BMI operated the Diamond Club frequent-flyer scheme, which featured Blue, Silver, and Gold membership levels. After the airline's acquisition by IAG and subsequent integration into British Airways, Diamond Club members were given status matches that aligned their BMI tier with the corresponding British Airways status. Nonetheless, British Airways did not acknowledge BMI’s Lifetime Gold status; those members were matched to BA Gold but were required to maintain their status through annual requalification.

Incidents and accidents

• On 7 October 1961, a Derby Aviation Douglas C-47B Dakota (registration G-AMSW) collided with Mont Canigou in the French Pyrenees during a charter flight from Gatwick to Perpignan, resulting in the deaths of all 34 people onboard.

• The Stockport Air Disaster occurred on 4 June 1967 when a British Midland Canadair C-4 (G-ALHG) crashed near Stockport, Greater Manchester. Of the 84 occupants, 72 lost their lives. This tragic event remains the deadliest in the airline’s history and led to the retirement of that aircraft model from service.

• On 20 February 1969, a Vickers Viscount (G-AODG) was damaged beyond economic repair after undershooting the runway at East Midlands Airport; fortunately, there were no injuries.

• A Vickers Viscount (G-AVJA) crashed during takeoff at Manchester Ringway Airport on 20 March 1969, resulting in the deaths of three out of four crew members.

• On 22 January 1970, another Vickers Viscount (G-AWXI) experienced an engine fire during takeoff at Heathrow Airport but managed an emergency landing; however, the aircraft was subsequently written off.

• A Fokker F27 Friendship (G-BMAU) crashed on approach to East Midlands Airport on 18 January 1987 due to icing conditions; no fatalities occurred.

• The Kegworth air disaster took place on 8 January 1989 when a Boeing 737-400 (G-OBME) crashed near East Midlands Airport embankment. Of the 118 passengers onboard, 47 lost their lives.

• On 24 August 2010, Airbus A321-231 (G-MEDJ), operating flight BD996 from Khartoum to Beirut, encountered a significant electrical failure that caused intermittent display malfunctions and uncommanded left rudder trim inputs, diverting the aircraft’s course by approximately 20 nautical miles. The captain disengaged autopilot and autothrust systems to manually land safely in Beirut. Airbus identified the cause as a reset of the Flight Augmentation Computer triggered by an electrical interruption. Following this incident, the AAIB issued Safety Recommendation 2010–092 alerting operators about possible unexpected rudder trim inputs associated with similar malfunctions on A320 family aircraft.

See also

• Air transport in the United Kingdom
• List of airports in the United Kingdom
• Transport in the United Kingdom
• List of defunct airlines of the United Kingdom

External links

• Information on BMI transfers – British Airways