UK-based bmi British Midland Airways is launching a new no-frills airline to compete with budget carriers flying to holiday destinations in southern Europe.
It said the airline would be based at East Midlands Airport in central England and offer high frequency services to Barcelona, Nice, Palma, Malaga and Alicante, starting on March 23.
No-frills carrier Go, which is owned by its management and venture capital firm 3i Group, announced last month it planned to start services from East Midlands Airport in May.
The new airline will have a separate name and identity from bmi British Midland, which will continue to operate as a full-service international scheduled carrier.
In October, bmi moved to cut jobs and flights on its long- haul routes because of falling demand for air travel in the wake of the attacks in the US.
The new operation will go head to head with Go and rivals like Ryanair and EeasyJet, which have been scooping up customers from their struggling full-service rivals. The no-frills companies have been offering aggressive price-cuts to lure travellers seeking cheaper flights in the global economic slowdown.
