BRITISH AIR COMPANY BMI ENTERS ARMENIAN MARKET

ARMENPRESS
Sep 4, 2007

YEREVAN, SEPTEMBER 4, ARMENPRESS: BMI, the second largest airline
operating at London’s Heathrow airport, has announced its takeover
of Heathrow-based BA franchise airline British Mediterranean (BMED).

BMI’s already impressive flight network will include 17 new
destinations throughout Africa, the Middle East and Central Asia as
from October 28, 2007.

With this purchase, BMI is now the sole British carrier operating
flights between Armenia and the UK.

The airline currently operates around 170 flights a day to and from
its main Heathrow hub. BMI is also a member of Star Alliance, the
world’s biggest airline alliance, providing passengers with global
connections and a smooth travel experience.

British Midland plc, the UK-based group holding company of BMI, has
subscribed to approximately £30 million of new shares in BMED. BMED,
which was established as a limited company in 1994 and operated as an
independent franchise partner of British Airways from 1997, currently
has a fleet of three Airbus A320 and five Airbus A321 aircraft.

Speaking about the takeover, chief executive officer of the BMI
group Nigel Turner said: "Bringing BMED into the BMI group creates
a business with a turnover in excess of £1 billion with substantial
growth opportunities. The acquisition enables the BMI group to
accelerate its strategy of expansion into medium-haul markets because
BMED operates to 17 destinations in 16 countries and has no overlap
with any current BMI route. BMED has a first class workforce and we
welcome them into the BMI group."

BMI country sales manager for Armenia, Simon Avagyan, looks positively
at the arrangement. "BMI has a good reputation throughout the industry
and we anticipate positive developments in the future. The entrance of
BMI into Armenian air industry market can provide for new developments
in this field."

Synergies between BMI and BMED include BMED’s Heathrow base and the
fact that it operates IAE engined Airbus A320 and 321 aircraft in
a two class configuration. Tickets for travel on the extended BMI
network are on sale from September 4th 2007.

–Boundary_(ID_FKPWZG6gNFD/t6hqyAOhKA)–