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Our history

A brief history of bmi 1938 to 1999

From humble beginnings nearly 70 years ago, bmi today operates 1,700 flights per week over a network of 36 airports in the UK, Europe, India, Saudi Arabia and transatlantic to the USA and Caribbean.

1938-1970 (the early years)

bmi began life in 1938 as Air Schools Ltd, specialising in RAF pilot training. In 1949 the company became known as Derby Aviation, diversifying operations to include passenger and cargo charter services.

In the 1950s the company ceased training RAF pilots but expanded passenger routes across the UK and Europe and cargo routes worldwide. In 1959 the company became known as Derby Airways and during the 1960s established itself as a pioneer of the rapidly growing package holiday flights industry.

The company became known as British Midland Airways in 1964 and moved from its home at Burnaston near Derby to the newly opened East Midlands Airport in 1965 before merging with Invica Airways in 1969.

1970s

British Midland Airways further expanded domestic and international passenger services including long haul destinations throughout the 1970s.

British Midland Airways Leasing for ‘instant airlines' was created in 1974, leasing a variety of long and short haul aircraft types to 25 worldwide carriers, providing a highly successful service and earning the company the Queens Award for Export Achievement.

In 1978 a consortium of British Midland Airways directors: Michael Bishop, John Wolfe and Stuart Balmforth obtained a principal shareholding. The company celebrated a landmark in 1979 when over one million passengers were carried for the first time in a single year.

1980s

Over the decade the airline enjoyed further service expansion and growth on domestic and international routes, challenging established flag carriers with vigorous competition.

The company established its headquarters at Castle Donington near East Midlands Airport in 1982. In the mid-80s a record 25,000 calls were received in one week at the British Midland telephone reservations centre and passenger carryings were recorded at 1.8 million.

A new distinctive red white and blue livery was introduced in 1986 as the airline changes name to become known as British Midland.

Chairman, Michael Bishop received the CBE in the Queens Birthday Honours list.

The first frequent flyer scheme for British Midland passengers, called Diamond Club was launched in 1987.

In 1989, Scandinavian Airlines (SAS) purchased a 24.9% stake in the airline at a cost of £25 million. 

1990s

The 1990s saw further growth by British Midland and a continuation of the ‘challenger' status enjoyed by the airline. British Midland continued to bring vigorous competition to UK and European services and campaigned against the restrictive air service agreements between the UK and USA.

By the end of this decade British Midland enjoyed passenger carryings of over 6.5million a year.

In 1991 British Midland chairman, Michael Bishop CBE is knighted in the Queens Birthday Honours list.

Scandinavian Airlines increased its share in British Midland to 35% in 1992, later increasing this to a 40% stake.

A non-smoking policy was adopted across all BM scheduled flights in 1993.

The early 1990s also saw three significant industry ‘firsts' by British Midland. In 1992: becoming the first airline to offer a vegetarian option to passengers on UK services; in 1993 becoming the first European carrier to offer a separate business class cabin for business travellers; and in 1995: becoming the first airline to offer a booking service with payment over the internet.

In the late 1990s British Midland placed an aircraft order, worth $1bn, with Airbus Industrie for 20 new A320 and A321 type aircraft. The first delivered A321 aircraft went into service in April 1998.

In 1999 Lufthansa acquired a 20% stake in British Midland from the 40% owned by Scandinavian Airlines.

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