British Airways in talks to buy BMI from Lufthansa: report
08 September 2009
British Airways (BA) is considering a possible bid for rival UK carrier British Midland Airways Ltd. (BMI), reported The Sunday Times.
The Derby-based BMI is the second-largest airline operator from London's Heathrow hub. It largely operates to destinations within UK and other European countries apart from its services to the Middle East Central Asia and Africa and holds one of the best punctuality records in the UK.
The report said BA Chairman Martin Broughton has held talks in Germany over the weekend BMI's parent companyDeutsche Lufthansa AG.
Lufthansa already owns 50 per cent minus one share stake in BMI. The remaining 20 per cent is owned by SAS, the Scandinavian carrier.
In June, Lufthansa, Europe's second-biggest airline has reached a settlement with Sir Michael Bishop, the co-founder of BMI over a put option he is holding, to acquire the airline in stages bringing an end to the row that has been persisting for several months (See: Lufthansa to acquire British Midland Airways).
The German flag carrier is thought to have paid about £230 million for Sir Michael's shares.