Britain's BMI is suffering a collapse in passenger numbers as it loses out in a dogfight with low-cost rivals, train operators and European flag carriers, reports The Guardian.

According to the publication, leaked figures obtained by The Guardian show that the privately owned airline's flights from Heathrow carried 13 percent fewer people in February than they did a year ago. The report added that airline's most intensive routes between London and Scotland suffered the most dramatic slump in popularity. Passenger numbers on its Glasgow flights dived by 24 percent to 37,352 and the number of travellers on its Edinburgh flights fell by 17 percent to 44,760.

The airline insists that it is unconcerned by its shrinking customer base, which it says is a result of a change in policy to concentrate on price rather than volume. But the figures are likely to raise questions about BMI's strategy, launched last May, which involved axing free food and business-class cabins on many of its flights. The change was on the basis that it was never-delivering on customers expectations. The airline introduced a complex pricing structure with three types of ticket depending on the level of service required by travellers,added the report.

The data will also heighten speculation about BMI's future as an independent entity, as per the report.

The report also referred to fall in BMI's capacity at London's biggest airport and airlines losing out on specific routes such as London to Paris and others to faster rail services by Eurostar and Virgin Trains.

BMI's chief executive, Nigel Turner, reportedly said, we've taken a different strategy since I became chief executive. We've specifically focused on getting smaller aircraft in. We've been concentrating on yield [price] and concentrating on business passengers. We've cut out a bunch of uneconomic fares. We were getting to be slightly busy fools.?

He reportedly added that the drop was also partly explained by a renegotiation in fees for transfer passengers from BMI's Star Alliance partners such as Lufthansa, SAS and United Airlines: We talked to our interline partners and renegotiated for increased yields. Ipso facto, one or two of the lower ones drop out.