bmi Deal Completed

bmi Airbus lands at London Heathrow. (KEY - Chris Penney)

bmi Airbus lands at London Heathrow. (KEY - Chris Penney)

International Airlines Group (IAG) has completed the purchase of bmi from Lufthansa.  It is planned that bmi mainline will be integrated into British Airways and consultation has begun already with bmi mainline staff and their trade unions.  IAG says that bmibaby and bmi regional have not been sold prior to completion.  Under the terms of the purchase agreement, IAG will also acquire these businesses and receive a significant price reduction. As previously stated, bmibaby and bmi regional are not part of IAG’s long term plans and will not be integrated into British Airways.  IAG will pursue options to sell these businesses and more details will be provided in due course.  The costs associated with exiting these businesses, including the impact of operating them in the short term, are expected to be offset by the price reduction.  IAG will update investors about the bmi integration plan at its Q1 results on May 11, 2012.

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