23-Apr-2012 10:16 AM

International Airlines Group (IAG) formally completes bmi purchase from Lufthansa

International Airlines Group (IAG) announced (20-Apr-2012) it formally completed the purchase of bmi from Lufthansa on 20-Apr-2012. IAG plans to integrate bmi mainline into British Airways and consultation with bmi staff and trade unions has already commenced. As Lufthansa failed to sell bmi units bmibaby and bmi Regional, IAG will acquire these in addition to bmi mainline and will "receive a significant price reduction". IAG stated it does not plan to integrate bmibaby and bmi Regional into British Airways and so will "pursue options to exit these businesses". Unite union national officer Oliver Richardson stated if IAG "is not committed to retaining bmi Regional and bmibaby and the 800 jobs which are at stake it must find a viable buyer". As previously reported by CAPA, up to 1200 employees at bmi mainline may be made redundant, with many job losses to come from the closure of bmi's headquarters at Castle Donington. [more - original PR - IAG] [more - original PR - Unite]

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