Lufthansa sells BMI to British Airways owner IAG
07 November 2011 12:45
Lufthansa has sold BMI to British Airways owner IAG for an undisclosed sum, thought to be around £300 million. The deal is expected to complete before April 2012.
BMI operates flights to Europe, the Middle East and Africa but the key issue for regulators will be the extra take-off and landing slots at Heathrow Airport that it operates.
The acquisition will mean that IAG would control more than half of the landing slots at Heathrow.
Virgin Atlantic, which also made a bid for BMI, is strongly opposed to the deal. "British Airways' hold over Heathrow is already too dominant and we are very concerned - as the competition authorities should also be - that BA's purchase of BMI would be disastrous for consumer choice and competition," Virgin Atlantic said.
BMI reported a loss of Eu154 million (£133 million) in the first nine months of this year.
The airline also operates BMIBaby and the Aberdeen-based BMI Regional.
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