Lufthansa ready to sell British Midland International (BMI) to IAG
According to rumours, an agreement between the German carrier Lufthansa (LA) and IAG (International Airlines Group, the holding company formed by the merger between British Airways and Iberia) is imminent, entailing the sale of LA’s British unit – British Midland International (BMI to IAG). Negotiations seem to be in the final stages and a memorandum on the principal operations has already been signed.
The same sources are convinced that the agreement between the two European air transport giants will be completed by this weekend.
Thanks to this agreement, Lufthansa will manage to get rid of a negative element, being this a unit with heavy financial losses registering a loss of 154 million Euros in the first nine months of 2011. On the other hand, IAG is interested to sign this contract as it would mean acquiring 8.5% of the busy London-Heathrow airport slots thus strengthening its leadership position in Europe.
The financial results of the Anglo-Spanish Group are expected to be issued this weekend too.