International Airlines Group has signed a binding agreement to sell bmi Regional to Sector Aviation Holdings for a total consideration of £8 million in cash. Also today, British Airways confirmed nine bmi destinations will change from a bmi (BD) to the BA code and flight number from May 23rd.
Budget airline bmibaby will be grounded from September, with some routes being stopped from next month, IAG has announced just weeks after it bought bmi from the Lufthansa Group for an undisclosed sum. The move by British Airways’ parent will put 500 jobs at risk.
The Scottish consortium, Granite Aviation, is thought to be in advanced talks with IAG over the sale of bmi regional for £20 million, according to reports. The news comes just one week after IAG completed its puchase of bmi for an undisclosed sum.
Willie Walsh, chief executive, International Airlines Group, offers Breaking Travel News his thoughts on the latest developments in the aviation sector.
British Airways parent International Airlines Group (IAG) has completed the purchase of bmi from Lufthansa today. IAG revealed it will also be taking over bmibaby and bmi regional for an unspecified “substantial price reduction”, but it does nt plan to integrate these businesses into BA.
Virgin Atlantic is set to appeal against the European Commission’s decision to allow IAG, BA’s parent company, to acquire BMI for £172.5m. Virgin boss Sir Richard Branson claims that the deal, which gained regulatory approval on 30 March, could damage the aviation industry for years to come.
British Airways’ parent IAG has secured approval for the takeover of BMI from its current owner Lufthansa. The £172.5m deal is expected to be finalised later this month.
In a long expected move, International Airlines Group has confirmed it would consider taking a stake in Japan Airlines (JAL) when it re-lists on the stock exchange later this year. IAG – the holding company behind British Airways and Iberia – is already closely affiliated to the carrier through the oneworld airline alliance.
International Airlines Group – operators of British Airways and Iberia – has seen profits soar during 2011. In total the group recorded operating profit of €485 million over the 12 months to December 31st, up from €225 million the previous year.
International Airlines Group and Japan Airlines have signed plans for a new joint business between British Airways and JAL on flights between Europe and Japan. Both carriers are already part of the oneworld airline alliance.
International Airlines Group saw traffic measured in revenue passenger kilometres increase by 12.2 per cent in December 2011 when compared to the previous year. Growth was led by British Airways, which accounted for nearly 70 per cent of passengers flown, while Spanish counterpart Iberia saw virtually static demand.
British Airways owner International Airlines Group has agreed to purchase bmi from Lufthansa for £172.5 million. IAG chief executive Willie Walsh warned there would be job losses during the restructuring of the loss-making carrier, but said the long-term growth of its operations at London Heathrow would be of benefit to the UK.