BA ‘to bid for BMI’
11.09.11
British Airways is to bid in the expected auction for Lufthansa-owned BMI, the second biggest operator at Heathrow, the Telegraph reports. Lufthansa has appointed investment banks led by Morgan Stanley to look at a sale or break-up of a loss making airline it has failed to turn around since gaining control two years ago.
Willie Walsh, chief executive of International Airlines Group (IAG), the holding company for BA and Iberia of Spain, has made no secret of his interest in BMI, not as an airline but for its valuable take off and landing slots at overcrowded Heathrow. BMI has 11 percent of the airport's capacity – valued at £770m three years ago – while BA controls 42 percent and Iberia 2 percent.
Any addition would raise regulatory and monopoly issues, but the newspaper reports Mr Walsh feels BA is not out of step with other European airports where national airlines have the biggest stakes.
IAG is not said to be interested in bidding for all of BMI, but is ready to negotiate. An IAG official said: ‘We have made it very clear we are interested in BMI in terms of slots. The ball is now in Lufthansa's court.’ BA is expected to face competition from ambitious Middle East airlines seeking a bigger presence at Heathrow.
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