BMI is set to ditch commission and axe up to 1,500
jobs in a bid to cut costs by £100 million over the next three years.

The Project Blue Sky programme aims to slash BMI’s
overhead by between 18 and 20 per cent.

While stressing the need to work with the trade, BMI
chief executive Austin Reid warned the changes would be more radical than anything
attempted by British Airways when it axed commission in favour of sector
payments. Full details of the plans will be revealed towards the end of the
year.

Between 1,000 and 1,500 jobs will go from BMI’s
4000-strong workforce though Reid said most would be made through natural
wastage.