IAG agrees to acquire bmi from Lufthansa7 November 2011
International Airlines Group (IAG) and Lufthansa GroupÂ reached an agreement for the sale of LHâ€™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 â€œin advanced discussionâ€ to sell bmi regional to a UK-based investor group â€œpreviously associated with the regional business,â€ indicating its owner was negotiating to divest its loss-making UK subsidiary in parts. It is not clear what will happen with the companyâ€™s low-cost carrier, bmibaby.