International Airlines Group (IAG) and Lufthansa Group reached an agreement for the sale of LH’s loss-making British Midland (bmi) to IAG. The purchase of bmi could increase IAG subsidiary British Airways’ share of slots at London Heathrow to 53%, although regulators most likely will require some slot divestments.
The companies did not detail whether the agreement is for the sale of the entirety of bmi or just the carrier’s mainline operation. Recently, bmi confirmed it was “in advanced discussion” to sell bmi regional to a UK-based investor group “previously associated with the regional business,” indicating its owner was negotiating to divest its loss-making UK subsidiary in parts. It is not clear what will happen with the company’s low-cost carrier, bmibaby.