BMI to cut further 800 jobs as restructure continues

BMI is to cut 800 jobs as part of its ongoing restructure aimed at saving the struggling airline £100m a year.

The Lufthansa-owned company, which has more than 4,100 staff, has suffered badly during the recession.

It made a £155.6m loss in 2008 and the result for 2009, when passenger numbers fell by a fifth to 7.9 million, is expected to be slightly worse, reports the Times.

Of the 800 staff who are to lose their jobs, 670 have been notified or are already gone. BMI has already cut 750 jobs and announced the closure of its final salary pension scheme to existing members.

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Unprofitable routes have also been cut and the fleet reduced from 39 to 29 aircraft to reflect the fall in demand. This has resulted in a reduction in capacity of between 20% to 25%.

The revamp will also see the return of the airline’s former name – British Midland International.