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bmi to Integrate With British AirwaysApril 20, 2012 By: Jena Tesse Fox
Big news for Europe's skies today: IAG has completed its acquisition of U.K. airline bmi from Deutsche Lufthansa and will integrate bmi into British Airways.
According to the Wall Street Journal, the terms of the original deal excluded loss-making units bmibaby and bmi regional and had a price-tag of $278 million. However, the two units weren't sold prior to completion and the price paid has been revised accordingly.
IAG declined to comment on the new figure other than to say it will receive a "significant reduction." It added that it is exploring options to exit the two units. A condition for the acquisition is that IAG will have to release 14 daily slots at London's Heathrow Airport.
Meanwhile, the airline will integrate bmi into British Airways and is currently consulting with labor unions. British Airways said last week that the integration could result in the loss of up to 1,200 jobs.