Britain’s third-largest airline, bmi, will fly near-empty aircraft from this
autumn to preserve multimillion-pound take-off and landing slots, The
Times has learnt.
The rise in fuel prices and an expected slump in passenger numbers after the
summer mean that many airlines will have to cancel flights, but bmi does not
want to lose its coveted slots at Heathrow, which are valued at £770
million.
Airline executives are bracing themselves for their toughest winter yet as the
credit crunch forces passengers to cut back on air travel and fuel prices
continue to drive up costs.
The decision by bmi to fly “ghost flights” - short-haul trips with only a
handful of passengers - is one of a series of plans being drawn up by
airlines. Senior industry figures admit that other carriers will cancel
domestic flights at short notice and gave warning of chaos ahead for
business travellers. Rather than withdrawing from uneconomic routes, the
tactic of cancelling individual flights is another way of retaining landing
slots.
Flybe, an Exeter-based airline, has already advertised for actors to fly
between Norwich and Dublin to boost passenger numbers. The airline came up
with the idea when faced with the prospect of losing £280,000 because it had
not met a passenger target imposed by Norwich international airport as part
of a commercial deal.
Tim Bye, deputy chief executive of bmi, told The Times that his airline
would prefer to cancel uneconomic flights, typically those in the middle of
the day from London to the North of England and Scotland, but “we have to
fly that service eight out of ten times”. Under “use-it-or-lose-it” rules
that govern the allocation of the much-sought-after slots at Heathrow,
airlines must use their scheduled slots 80 per cent of the time - or forfeit
them.
Mr Bye said: “We have to keep flying to preserve our slots. What might have
been a marginal service in most winters will become even worse, partly
because of the price of fuel and partly because of the drop-off in demand
that the general economic cycle will bring. Economic pressures will drive
the demand down even more than airlines would normally expect.”
Bmi owns 11 per cent of Heathrow’s take-off slots, second only to the 41 per
cent held by British Airways and more than Virgin Atlantic. Deloitte, the
financial services firm, values a peak-time return slot at £25 million to
£30 million.
According to Mr Bye, bmi will not be the only airline to fly aircraft that it
would rather keep on the ground this winter. “This will affect airlines
across the board,” he said. “Everybody is feeling it.
“The demand [for airline seats] will drop off at a greater rate than ever
before during the winter. Some will be better placed than others to weather
it. But, fundamentally, I would be surprised if more than a handful will be
confident enough to operate all services at a profitable level.”
Peter Morrisroe, the managing director of Airport Coordination, the company
that is responsible for the allocation of slots at British airports, said:
“If an airline wants to retain the rights to its slots, it is essential it
complies with the use-it-or-lose-it rule.”
Environmentalists reacted furiously to bmi’s decision. Richard Dyer, an
aviation campaigner at Friends of the Earth, said: “Flying near-empty planes
across Britain simply to preserve airport take-off slots would be
environmental vandalism. The Government must intervene to prevent this kind
of gratuitous climate wrecking from taking place – and stand firm on its
plans to switch to an aviation tax based on planes, not passengers.”
Asked if bmi could switch to smaller aircraft when bookings were low, Mr Bye
said: “We can carry on with the same aircraft even if they are too big for
the demand, or downsize so it is cheaper to fly the aircraft. But this is
not easy, every flight is configured.”
Bmi, which operates 1,700 flights per week over a network of 36 airports,
later confirmed that it would not be operating “empty” flights in order to
protect Heathrow slots.
The company, which flies to the United States from Manchester airport, uses
its Heathrow slots primarily for flights to European and Middle Eastern
destinations.
British Airways said at its annual meeting yesterday that it would not cut
transatlantic flights to protect its Heathrow slots, despite falling ticket
sales in the United States. It is also cutting capacity by 3 to 5 per cent
this winter. BA’s Heathrow slots are valued at about £2 billion.
Theresa Villiers, the Shadow Transport Secretary, said: “It is imperative that
the system for running slots does nothing to push the airlines into flying
empty planes. Besides damaging the environment, it makes absolutely no
economic sense.”
Douglas McNeill, a transport analyst at Blue Oar, a City stockbroking firm,
said that there would be 10 per cent fewer airline seats available this
winter as airlines ground aircraft, reduce numbers of flights and in some
cases sell off planes.
He said: “Airlines ought to think twice about this practice [of flying
near-empty planes] at a time when the fuel required to put a plane in the
air is ruinously expensive and the industry as a whole is under scrutiny for
its environmental impact.”
Sky high
£60,000 - cost of running a flight from Heathrow to Edinburgh (approx)
1,303 - flights take off and land on an average day at Heathrow
£30m - value of a peak-time Heathrow return slot, according to Deloitte
11% - proportion of slots at Heathrow held by bmi
Source: Times database
Browse
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Airport Coordination should be forced by the government to
allow the airlnes to retain control of their slots but allow other planes to use them temporarily. AC should be penalised for
the extortionate amount of money they must be making here.
and forcing airlines to fly empty planes.
JOHN, Brighton, England
actually 'ghost flights' often have no passengers at all - because it's impossible to buy tickets for them. if a flight is uneconomical anyway, it can be cheaper for the airline to cancel the crew too, and not sell any tickets whatsoever. The pilot and co-pilot just fly from A to B and back again
Leo Murray, London,
to be fair ghost flights arent reallly a decision are they, BMI have scheduled flights at scheduled times, theres not a lot they can do if not many people by tickets. is a train or a bus cancelled if they are almost completely empty? of course there not. airlines are just the latest green scapegoat
will, grimsby, uk
This should be illegal. If there are not enough passengers the flight should be cancelled. It would be more than a little annoying but the enviromental price we will have to pay greatly outweighs the inconvenience cost.
Amy, Joetsu, Japan
Perhaps Virgin could offer discounted seats to their West Coast frequent flyers such as myself.
lyn, santa barbara, ca, usa
Building a third runway is not about having more flights (total flight nos are capped) or about more passengers (every flight now, could be a jumbo i.e more passengers) its about having more peak time slots. If you read the article peak time slots are more in demand and thus more valuable,
charlie boggins, london,
Thames Estuary + New airport * 4 full length runways - BAA = Problem solved
Rich, London, UK
The action to fly near empty aircraft is a criminal act environmentally. Polluting the atmosphere unnecessarily shows that the airline has no respect for the environment and the government should deal with the issue immediately. This is a most serious state of affairs
Jim Wills, Brisbane, Australia
So they're flying empty planes in and out of Heathrow to maintain slots valued in the millions, yet its still of economic benefit for us to have a third runway....?
Seth, London, UK
I can understand the situation from the Airlines point of view - but why not charge passengers the variable costs of the flight rather than go empty or employ actors? At least cover some of the cost of the flight!
Mohammed Choudhury, London, UK
If you need a passenger to fill the planes, I'd be happy to oblige! I mean, someone has to keep the pilot company, I'm happy to volunteer!
Farrukh, Woking,
This situation is another example of process gone mad. It is quite clear that this problem will impact virtually all airlines. The rules must be changed to reflect the situation. Give all airlines a honeymoon period on slots. If not, before long the airlines will make their employees redundant.
colin , Horley,
JonB of Manchester, please note that the A320 carries 150 passengers or so, not 300, which makes your calculation even worse for airlines ...
John P, Pyrenees view, France
This situation won't last long. As fuel prices continue to rise airline will have no choice but to give up the landing slots and downsize the airline rather than run empty flights.
Hard news for airline staff but world demand for oil is changing the economic landscapte & there's no hiding from it.
Nigel, London,
before anything, think of the world and think of environment.
vishesh sharma, new delhi, India
How much do the actors get paid, does anyone know?
R Jerram, Southampton,
A punitive empty seat tax is called for if airlines have both money and fuel to burn! Aeroplanes whilst flying should be at least 80% full of paying passengers, otherwise empty seat taxes should be administered pro rata according to the number of empty seats.
HW, Derbyshire,
Sods' law says I'll be the one in the empty plane next to a crying baby.
niki , edinburgh,
So why do we need so desparately now another runway at Heathrow in order to keep the economy from collapsing ? Does anyone really think that fuel prices will drop again to its previous levels. Air travel will become and stay more expensive with the result that less people will travel.
NeK, London,
A good idea would be to set up a business renting small light aircraft to bmi, etc to carry the smaller number of passengers, if any.
Thus you would make money, bmi would keep its slots, the passengers get where they want, bmi save money and less damage is done to the environment...
Peter, Itamaraca, Brazil
This is old news. Airlines have been doing this for a long time, and it remains a commercial solution to a difficult problem. Airlines could identify more profitable routes (someone suggested Ibiza, I will suggest bmi restores its former winter Tenerife route from LHR, which would be popular).
Richard Campden Jones, Cardiff,
It doesn't make sense to say flights are empty because of rising fuel prices and therefore presumably higher ticket price. Surely it is better to sell cheaper to boost ticket sales and re-coup some cost rather than fly empty. Environmentally this way you would save customers using other transport.
Tracy, Ulverston, England
Expand Heathrow for more Ghost flights! There are children in schools and people trying to live there lives under these screaming pollutants. Watch more demoncracy go as Brown forces Heathrow expansion to choke a concentrated area of London. If there is an opportunity to cut back it should be taken
Peter Mc, Twickenham,
People are forgetting that these planes dont just carry bums on seats, they carry and make good money from cargo. A lack of passengers does not mean an 'empty' flight. bmi continues to make profits while others fail, and they do so by good business practice. Flying planes empty is not bmi practice!
Michael, Nottingham, United Kingdom
The use-it-or-lose-it practice demanded by airport operators belongs to another age of smoke free jetstreams, CO2 normal atmospheres and giveaway fuel.
Insisting on forcing airlines to maintain slots by flying empty aircraft is madness, time impervious airport operators were asked to justify this.
Chris Clark, Ruislip Manor, UK
The case for expanding heathrow has already been exposed to be entirely contirved and is purely in the interest of increasing profits at horrendous environmental cost. This article compounds that fact. Customer service at heathrow will be solved by lowering the number of flights not increasing them.
grant, london,
With ref to JonB. fares in economy class range from £100 (with tax) to £410 over about 10-15 fare levels. Business class ranges from £420 to £480 based over 4 fare levels. Only a certain number of seats is allocated to each fare level. The fare depends on what is available at the time of booking.
neil, maidstone, uk
bmi has one of the newest fleets of any airline. New airbus's and smaller regionl jets.
bmi did not use actors that was flybe between Norwich and Dublin.
Heathrow is vital to the UK.
Being green is waste of time when China and the USA whipe out the small bit the UK does. Keeping Flying bmi.
Pete, Windsor, UK
So you dissenters call the idea of flying practically empty "ludicrous" and "outrageous",. How do you react your shuttle which is bumped because of low numbers, or if you have to fly via Frankfurt to Bordeaux because of plane scheduling problems..?" Disgraceful!" Well done BMI! Good service!
D Kennedy, Warsaw, Poland
Peter Morrisroe says it's essential that airlines use their slots to maintain them. In what way is it essential Peter? To maintain your company's profits? Think outside the box and come up with a win-win compromise.
How come no-one else has spotted that this is all because he says so?
Mark, London,
Louise, bmi will have the empty planes. It was Flybe who paid actors.
Liz, Birmingham,
If you read it properly, the airline has NOT operated ghost flights, check Tim's quoted comments. The headline misleads the actual article. If passengers have paid then the airline should operate the flight - regardless of how many onboard. Dont blame the airline for complying with BAA's rules.
Derek, Derby, United Kingdom
This is bordering on criminal.
You can see why BMI are planning to do this. But if these planes are not full, doesn't that tell them something? People aren't using their planes!
If another airline goes the way of cheap Silverjet, I'm sorry, but that is business. The country's well being wins
James, London,
Unbelievable that this is actually being encouraged by the rules. As others suggest, they should fly smaller planes if the rules aren't changed to ones that make more sense.
G Davidson, Kashiwa, Japan
This perfectly illustates basic business sense, and that "Environmental Awareness" is used simply as a tool to con naive consumers into thinking they are doing something "good"
The fact of the matter is, who cares about the environment?The priority in business is simply to make money.
Hassan Azam, Banbury, England
What are these actors actually supposed to act like? Passengers? Could this be an opportunity to introduce mile-high murder mysteries to relieve the boredom of air travel? Count me in!
Erwin, London, UK
So governments around the world add huge amounts of "Green Taxes" to the cost of flights. Passenger numbers drop as a result and then the planes are flown empty with no passengers paying the taxes.
Mark, The Hague, The Netherlands
What do you expect bmi and others to do?
As passenger numbers drop off it makes economic and environmental sense to strategically cancel or combine flights. This however is ‘capped’ by the requirement to use a high percentage of its slots. Don’t blame the airlines for playing by the rules given to them.
As for the issue of the 3rd runway. Average landing delays for Heathrow are about 10 minutes per aircraft. Average burn throughout various aircraft types about 5 tones per hour. This works out at 1100 tones of wasted fuel and pollution per DAY.
Build that runway.
Vince Hogg, Exeter, UK
Change the rules and fast. This is polluting, wastes fuel and pilots time. Find another way to preserve slots.
N Reed, Truro, UK
I presume that bmi are paying these 'actors' to take these ghost flights - why can't they just let normal passengers have them for a £1 or something? Ludicrous.
Louise, Herts,
This calls into question any green/environmental tax. As we all suspect, it is just about getting more money out of us rather than any concern r.e. global warming/pollution- aviation pollution is deemed to be one of the worst due to the height at which fumes are released.
tim, swindon, uk
"£60,000 - cost of running a flight from Heathrow to Edinburgh (approx) "
An A320 carries roughly 300 people, so the break even price would be £200.
However it's not, so it doesn't cost 60k.
JonB, Manchester, UK
Instead of flying these pic, thirsty, EMPTY commerical jets, why not keep their slots open by using Cessnas or other light aircraft?
Pete, billericay, essex
Interesting that my council is about to implement a congestion tax to "save the environment" by reducing emissions, and yet big companies are required to fly needless flights. How about "fly for a pound" days? Or just charge them for the slot, but not fly the plane, wouldn't that make sense?!?!?!
Gary, Manchester, UK
The solution is obviously a virtual third runway at Heathrow. Airlines could then pretend that their aircraft had taken off from a pretend runway wth pretend passengers, thus saving their slots and the environment in one go.
Steve Everett, Banbury, U.K
It's hard to believe that only a few months ago that the DfT and BAA was telling us that on foggy days the number of planes held in holding patterns was a dreadful waste of fuel, so serious that they they needed to build a new runway.
John Ackers, London,
Airline operatives and ststaff work incredibly hard to provide a safe and efficient service which has transformed holiday making and communications in this country. It is a crying shame that they are being squeezed in this way. For every threatened airline thousands of jobs are at stake
geraldine, Bordon , Hampshire
With fuel at such high prices would it not make sense for the airline industry to get around the table and come to some agreement on ghost flights and slots in the current economic down turn. But what pains me the most is the receive over £10 billion in tax breaks each year because of tax-free fuel.
Clive, Dartford, Kent
So this is why a third Heathrow runway is required. To fly empty aircraft, to line the pockets of developers and to provide Directorships for serving and out-of-work politicians.
Neil, Gloucestershire, England
Supply and demand create prices in all other walks of life , it will on air travel, and they will have to lower prices rather than fly empty
stuart brown, neath, U K
Absolutely crazy - the world has gone mad. Surely there could be a 'financial' arrangement that would allow companies to keep the slots (that they don't need), without wasting the worlds resources and poluting the skys unnecessarily.
As to the extra runway they talk of needing errr... yeah right
Suki, Milton Keynes, England
This an old story, its about securing timed slots.
Colin, Poole, UK
What a great time to test a new route.
Instead of sending 'ghost' flights to potentially useless destinations will one of you, the airlines that is, provide the international community in Ibiza with a winter sevice direct from the UK.
Publicise it well and we will give you our 100% support.
Carl Hague, Santa Eulalia, Baleares
Good idea aj - let's take the OAPs for a quick spin. Most of them don't get out much any more and a day-trip up and down the UK would do them good (assuming the planes also fly back empty). Or they could use the space to provide "classes" to people who, like me, are scared of flying.
Billy Barnett, HK,
Instead of demanding airlines fly their slots 80% of the time, the rule should include a factor to include the number of passengers carried within those slots. For instance, define a slot as carrying 150 passengers from X to Y, and then demand that the carriers maintain an average 75% occupancy.
Paul, Wassenaar, The Netherlands
'it makes absolutely no economic sense' hmm Theresa it obviously does make economic sense otherwise they wouldn't be doing it! Good to see that transport will be in safe hands if there is a change of government.
Ale, Sydney, Australia
And the rail companies cancel trains that are fully booked!
Paul, Coventry,
So we need a Third Runway at Heathrow, do we? No, I didn't think we did.
Henry, Hereford,
So much for creating unnecessary carbon-emissions. Drivers get hammered by fuel tax but airlines find it more cost effective to waste fuel flying actors around. Heathcliff will no doubt dither about and let this practice continue in order to continue trying to justify a 3rd runway at Heathrow.
Donna Walker, Effingham, England
"Environmentalists have reacted furiously"
Who cares about these technophobic neo-luddites anyway?
Speaking as one who studiously avoids Thiefrow when travelling, Who carea about "landing slots". Use it or lose it is a very fair policy
Chris Davison, Middlesbrough, UK
There are always people who will travel if the fare is low enough. Try concentrating on the elderly and retired section of the population with pensions who are not affected by the downturn in the economy. Take a survey and find out where people want to go and how much they would pay to get there
a j sheridan, miami, usa
We are already facing global warming and fuel shortage. It is simply a waste of resources.Why can't Heathrow shows some flexibility and take the circumstances into consideration?
Jos, london,
>Environmentalists reacted furiously
When did they ever react non-furiously?
Tom, Bristol, UK
Decision time for Gordon Brown and his moral compass can be found on the space shuttle heading into space so no orders from No.10.
Reduce executive's bonuses with each empty
aircraft flying and watch how quickly a solution appears.
Hit our oxygen, hit their pockets.
Ken.H, Harrow, UK
Talking of ghost flights and fake passengers... The truth is out there.
Andrew Milner, Karuizawa, Japan
Against this background of reduced demand why on earth do BAA insist that there is a requirement for additional capacity at Heathrow?
Martin, London, England
Heathrow could cut down the number of slots available, perhaps fly less at night, maybe even reduce the load on the terminals and runways.
Something tells me there would then be other big savings to be made. And nobody would lose, they would just not gain quite so much.
I could live with that.
Rosemary, Germany,
hm... they could always lower prices, but wait, no, no that would be too simple.
Richard, Moscow, Russia