EUROPE. Lufthansa is to sell British Midland Ltd (BMI) to International Consolidated Airlines Group, parent company of British Airways.
Lufthansa said it had struck an agreement “in principle” over the deal, though it remains subject to conditions such as a binding purchase agreement, due diligence and requires clearance by regulators.
The companies expect the purchase agreement to be finalised in coming weeks. The transaction should be completed in Q1 2012, they added.
No valuation was given for the sale of BMI, which reported an operating loss of €154 million for the first nine months of the Lufthansa’s group financial year, to September.
Announcing those results last month, Lufthansa said: “Due to the company’s strong presence in the Middle East and North Africa, business at bmi suffered particularly badly from the effects of the political turmoil in the region. The weak economy in its British home market also depressed the result.”
Alpha Flight operates the onboard retail concession at BMI.
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