London Heathrow's second biggest airline bmi has announced details of its integration programme for BMED following the acquisition of the airline by the bmi group last month.

bmi management has undertaken a comprehensive 30 day review of BMED and plans to have completed the total integration of the former BMED network into the bmi operation for the start of the Winter 2007 flying programme.

Nigel Turner, chief executive officer of bmi, said: "In assessing our investment in BMED before the decision to acquire our 99 per cent shareholding, it was clear that we could only justify the investment of 30 million pounds if we were able to reduce the cost base significantly. This had to be achieved whilst still maintaining the BMED revenue streams as well as maintaining and developing its route network from the winter 07/08 timetable period onwards. However, it is critical that we do not lose the essence of BMED in the integration process.

"We have therefore set ourselves a clear timetable and strategy that will achieve just that. The key elements of our integration programme will be:

• We will operate as one airline - bmi - from October 28, 2007;
• Until then BMED will continue to operate as a BA franchise with no change to routes;
• From the second quarter of this year bmi will - subject to regulatory approval and agreement of a codeshare with BA - be selling BMED services with travel being available from date of sale;
• By October 28, 2007: The business will operate on a single bmi Air Operator's Certificate (subject to CAA approval); All BA livery and uniforms will be removed and all uniformed staff will be in bmi uniforms; A new midhaul product combining the best of BMED and the best of bmi will be agreed and will commence roll out across all bmi mid-haul services; All BMED services will transfer from T4 at London Heathrow to T1; The BA franchise will cease but, subject to regulatory approval, BA will retain a codeshare facility on the former BMED routes; Head office functions will be absorbed by bmi and BMED's head office will close.
• From October 28, 2007: A gradual phased integration of the bmi and BMED flight deck and cabin staff will commence.

"I genuinely believe that we can create a combined business that is better than the sum of its parts. We are creating a group with annual revenues in excess of ?1 billion and with a much expanded route network from London Heathrow. To achieve this kind of growth without the acquisition and integration of BMED could take years to achieve."

"The immediate implications of the integration are that a number of BMED head office jobs are at risk of redundancy. We will shortly be starting the consultation process to address any possible job losses as a consequence of this. Where job losses at BMED are unavoidable we will be doing everything possible to look at the suitability of candidates for any vacancies that currently exist within bmi, in order to reduce the number of compulsory job losses."

Within the rest of the BMED workforce, both in the UK and overseas, there is no indication that any jobs will be lost. The continuity of the BMED operation is critical and bmi will continue to operate all of the BMED aircraft with BMED dedicated crews until at least October 28, 2007. There will then be a gradual integration of crews anticipated to take well into 2008 on bmi's current planning.