Lufthansa selling BMI to BA owner

Lufthansa took control of BMI in 2008

Lufthansa has said it is selling British Midland (BMI) to International Consolidated Airlines Group (IAG), which owns British Airways and Iberia.

No details have yet been given of how much will be paid for the loss-making carrier.

The airlines said they hoped to sign a purchase agreement “in the coming weeks” and complete the deal before April 2012.

The sale still has to be cleared by regulators.

The key issue for regulators will be the extra take-off and landing slots at Heathrow Airport that BMI owns.

The acquisition would mean that IAG would have more than half of the landing slots at the UK’s busiest airport.

Virgin Atlantic, which said it had also made a bid for BMI, is likely to strongly oppose 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.

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