British Airways savaged, Lufthansa drops as bmi/Brussels deals go through

In a landmark day for European aviation, Lufthansa has reached a deal to acquire bmi to become the second largest carrier at London Heathrow Airport - in a potential mortal blow to British Airways. BA's share price slumped 8.7% yesterday as bmi founder, Sir Michael Bishop, reached a deal with the Conquerors from Cologne that buries months of acrimony over sale conditions and price. For Lufthansa, the timing could not be sweeter, as BA lurches from one bad headline to the next, and coincides with the European Commission's green light for its acquisition of Brussels Airlines to consolidate its position in the continent (see below for full details).