Lufthansa ready to takeover BMI

BMI is being taken over by Germany’s Lufthansa, buying the 50% of the company owned by BMI chairman Sir Michael Bishop. Lufthansa, already owns a 30% stake in BMI minus one share.Details of the deal have not yet been released it will give Lufthansa control of more flights from London Heathrow airport than any other airline with the exception of British Airways.

The remaining 20% of BMI is currently owned by Sweden-based Scandinavian Airlines (SAS).

BMI flew 10.6 million passengers last year and operates 70 aircraft. It controls 11% of landing and take-off slots at Heathrow.

Lufthansa signed an agreement with Sir Michael back in 1989 that if he ever wanted to sell his BMI stake, it would have first refusal.

BMI has seen its profits hit this year by the big rises in the price of aviation fuel in the first half of the year.