Flybmi: A Regional Airline’s Journey

When Flybmi ceased operations on February 16, 2019, the closure marked the end of more than three decades of regional airline history. It extinguished the last operational link to one of the most recognisable names in British aviation, British Midland Airways.

At the time of its collapse, the airline operated a fleet of 14 Embraer ERJ-145s and three ERJ-135s, serving around 25 destinations across the UK and Europe. It was a compact but highly specialised operation, focused on thin, business-oriented routes that sat beyond the commercial reach of larger carriers.

Although the Flybmi brand itself was short-lived, the airline’s roots stretched back to the late 1980s and to a modest Scottish commuter operator whose evolution mirrored the shifting economics of European regional aviation.

Business Beginning In Aberdeen

The story began with Business Air, founded by Ian Woodley and Graeme Ross. Operations commenced on August 15, 1987, from Aberdeen, initially using a pair of Embraer E110 Bandeirantes. The airline’s early focus was on charter flying for the oil and gas industry, reflecting the North Sea’s economic importance to the region.

Growth came quickly. Following the collapse of fellow Aberdeen-based commuter carrier Air Ecosse, Business Air absorbed many of its former routes, strengthening its scheduled network. In 1991, the airline introduced a pair of Saab 340QC (Quick Change) aircraft, a versatile solution that enabled passenger service during the day and overnight mail or freight operations. That same year, a scheduled service to Esbjerg became Business Air’s first international route.

A significant turning point arrived in 1992, when Lufthansa and Crossair invested in the company. Codeshare agreements followed on several Aberdeen routes, embedding Business Air into wider European networks. At the same time, British Midland began wet-leasing Saab 340s from the airline after finding itself with surplus capacity at Heathrow.

The move into jet operations came in November 1994 with the arrival of a single BAe 146-200 (G-GNTZ), transferred from Crossair and deployed on London City services. By the mid-1990s, Business Air had established bases across the UK, including Aberdeen, Edinburgh, Glasgow, Leeds, Manchester and East Midlands, a remarkable footprint for a carrier that had started with two turboprops less than a decade earlier.

The ‘Commuter’ Era

In May 1996, Business Air was acquired by Airlines of Britain Holdings, the parent company of British Midland Airways and British Regional Airlines (BRAL), which included Manx Airlines, Manx Airlines Europe, and Loganair. Initially, the airline retained its identity and continued to operate much of its existing network, alongside additional wet-lease flying for British Midland from East Midlands.

Strategic tensions within the group soon prompted change. By March 1997, the holding structure was dismantled to avoid conflicts of interest between British Midland’s ambitions and the franchise activities of its other regional subsidiaries. BRAL wanted to concentrate on its franchise business with British Airways (BA). Meanwhile, British Midland sought to intensify competition with BA and strengthen its ties with Lufthansa (LH) and Scandinavian Airlines (SAS). As a result, Business Air was rebranded British Midland Commuter, formalising its role as a feeder and regional arm aligned with British Midland’s network strategy.

Fleet modernisation followed. Although there were early plans to introduce Saab 2000s, these were abandoned in favour of regional jets. In November 1998, the airline placed a $200 million order for 15 Embraer ERJ-145s, with deliveries beginning in May 1999. The 49-seat jet proved well suited to high-frequency business routes and quickly became the backbone of the operation.

Another notable chapter opened in February 2000, when British Midland Commuter began operating services from Munich on behalf of Lufthansa CityLine, following the collapse of one of the UK’s earliest low-cost carriers, Debonair. Five BAe 146s were based there, flying 14 European routes, and establishing a long-lasting relationship with Munich that would later shape the airline’s future.

bmi regional is Born

At the turn of the millennium, British Midland undertook a wide-ranging restructuring as it prepared to re-enter long-haul markets and refocus on Heathrow. The commuter operation was effectively spun off, gaining its own board and decision-making authority while also inheriting many of British Midland’s former regional routes outside Heathrow and East Midlands.

In February 2001, British Midland became bmi (British Midland International), and British Midland Commuter was rebranded bmi regional. With new management in place, the airline developed a distinctive business-focused model. Passengers were offered complimentary onboard service, fast-track security and priority check-in, while schedules were built around dependable morning and evening frequencies to support same-day travel.

The fleet’s flexibility also underpinned a diverse operation. Flights across the UK and Europe were timed with high-frequency dependable morning and evening departures. At weekends, when business demand softened, Embraer jets were used for sports charters, corporate flying and wet-lease contracts, including services operated for Brussels Airlines. This adaptability became a defining feature of bmi regional’s commercial approach.

Sale, Survival and Independence

Storm clouds gathered again in 2011, as losses mounted across the bmi group. In September of that year, Lufthansa announced its intention to sell bmi. Despite interest from Virgin Atlantic, on December 22, 2011, International Airlines Group (IAG), parent of fierce rival British Airways, confirmed it would acquire the airline for £172.5 million. The deal, however, excluded both bmi regional and the low-cost offshoot, bmi baby.

While bmi baby would later cease operations, bmi regional found an unexpected lifeline. A consortium of Scottish investors, led by former Business Air founders Ian Woodley and Graeme Ross, alongside Robert Sturman, acquired the airline through Sector Aviation Holdings on May 10, 2012, for £8 million.

Operations for mainline bmi and Lufthansa continued until October 28, 2012. The following day, bmi regional became fully independent, adopting the BM IATA code and launching new routes, including Manchester–Antwerp and Bristol–Aberdeen. The message from management was clear: the airline intended not merely to survive, but to grow.

“We believe the introduction of these new routes alongside maintaining our existing services demonstrates a clear statement of our intent to develop the business,” Ian Woodley said at the time.

A Pan-European Niche Carrier

In August 2015, bmi regional became part of Airline Investments Limited, a new holding company that also included Loganair. Both airlines continued to operate independently, but the structure offered efficiencies in procurement and management, as well as the benefits of scale.

By 2017, bmi regional had refined its role as a pan-European business airline. Around half of its flying took place outside the UK, with intra-European services operated from Munich, once again in cooperation with Lufthansa, and later from Stavanger. Munich emerged as the airline’s largest base and de facto European hub, making bmi regional Germany’s third-largest regional airline by seat capacity at the time.

Growth continued elsewhere. A new hub was established at Birmingham, with routes to Graz, Nuremberg and Gothenburg. Fleet renewal plans were also underway. There was even talk of larger aircraft to boost capacity on more popular routes. The airlines, then Commercial Chief Jochen Schnadt said: “We definitely see an opportunity for six or more larger aircraft in a reasonably short period of time.”

Rebranding, Brexit and Collapse

In July 2018, the airline underwent a final rebrand, becoming simply flybmi. The simplified name and updated visual identity were intended to appeal to a broader European audience while retaining a link to the historic bmi brand.

Speaking of the “new” identity, the company said: “The simplification of the brand and logo to flybmi retains investment in the current name and visual identity, which still references the rich history of the legacy flybmi brand whilst appealing to a broader European audience reflecting the refreshed vision for the company.”

Yet external pressures were intensifying. With around 50% of its flights operating outside the UK, the airline was particularly exposed to uncertainty surrounding the UK’s withdrawal from the European Union. Rising costs and an increasingly unpredictable regulatory environment undermined confidence, and despite its established niche and loyal customer base, further financial backing could not be secured.

On February 16, 2019, Flybmi abruptly ceased operations and entered administration, cancelling all flights with immediate effect. The company cited Brexit-related uncertainty affecting trading and future prospects as a key factor in its demise. Within days, several former routes were picked up by Loganair, underscoring continued demand for the connectivity it had provided.

For more than 30 years, from oil-industry charters to complex pan-European schedules, bmi regional adapted repeatedly to survive in one of aviation’s most unforgiving sectors. Its history encapsulated the strengths and vulnerabilities of regional flying: operational agility, close ties to business travel, and relentless exposure to economic and political shocks.

Though the Flybmi name faded quickly, the airline’s lineage, from Business Air to British Midland Commuter and finally bmi regional, remains an instructive chapter in British and European aviation history, and a reminder of how vital, yet fragile, regional airlines can be.

Cover image credit: Aero Icarus from Zürich, Switzerland, CC BY-SA 2.0, via Wikimedia Commons.

N.B. The author does not own the rights to any of the images included in this article unless otherwise stated.

© Jet Back In Time by Lee Cross