The airline known as British Midland Airways, better known as Bmi, has just recently countered speculations that it will not be able to continue operations beyond the current year. Reports went on to say that the company would not be able to meet its financial commitments. However, Bmi had denied this rumor and said that it would be able to meet its commitments and had adequate resources.

Many sources have said that, due to the combination of the economic downturn, the problems with Heathrow Terminal 5 and rising fuel costs, the airline has struggled to continue operations. However, Bmi shot back and said that auditors believe that the company can meet its financial obligations going forward. Bmi continued, with the current level of commitment shown by its parent company Lufthansa and with its advanced business initiative in place, the company feels that it has adequate resources to continue its operational existence in the future.

Auditors did, however, warn that the airline would need an extra £190 million in funding by October of 2010 to keep running. However, Bmi said that a simple loan from its parent company and the sale of some of its landing slots at Heathrow would be more than enough to meet the requirements that it has.

As of right now, Bmi operates just over 30 aircrafts and owns about 11 percent of the landing slots at Heathrow, and they are also doing everything they can to cut costs. Just last week the low cost part of Bmi, bmibaby, went on to axe 158 jobs and reduce its fleet size from 17 to 12.