Airline 'will survive' £155m loss

BMI owns 11% of the landing slots at Heathrow

Bosses at airline British Midland (BMI) have said they are confident it will survive despite a £155m loss last year.

The Derby-based firm said the economic downturn, fuel costs and problems with Heathrow Terminal 5 were to blame.

Auditors warned the airline needed an extra £190m of funding by October 2010 to keep running.

But managers said a loan from parent company Lufthansa and the sale of landing slots at Heathrow would allow it to meet financial commitments.

A statement from the airline's directors said: "The statement in the accounts clearly states that the directors and auditors believe that the company can meet its financial obligations going forward.

"Additionally, with the current level of commitment shown by Lufthansa and with advanced business initiatives in place, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence in the future."

BMI operates just over 30 aircraft and owns 11% of the landing slots at Heathrow.

Last week the low cost part of the company, bmibaby, said it was axing 158 jobs and reducing its number of aircraft from 17 to 12.