International Airlines Group yesterday completed the purchase of bmi from Lufthansa. It is planned that bmi mainline will be integrated into British Airways and consultation has begun already with bmi mainline staff and their trade unions.
A statement issued by IAG included: “bmibaby and bmi regional have not been sold prior to completion. Under the terms of the purchase agreement, IAG will also acquire these businesses and receive a significant price reduction.
“As previously stated, bmibaby and bmi regional are not part of IAG’s long term plans and will not be integrated into British Airways. IAG will pursue options to exit these businesses and more details will be provided in due course. The costs associated with exiting these businesses, including the impact of operating them in the short term, are expected to be offset by the price reduction.
“IAG will update investors about the bmi integration plan at its Q1 results on May 11, 2012.”
IAG had tried to sell on bmibaby and bmi regional before finalising the deal. Some analysts believe that the “price reduction” could be as much as £80 million off the £172.5 million price. The discount takes into account financial liabilities and losses that IAG is taking on.