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IAG completes deal to buy Bmi
April 20, 2012

British Airways’ parent company IAGInternational Airlines Group - the parent company of British Airways and Spain's Iberia which was created by the merger of the two carriers in 2010 has completed the purchase of Bmi from Lufthansa today.

IAG, which also owns Iberia, said that it now planned to integrate Bmi's mainline operation into BA – the company announced last week that it was looking to cut up to 1,200 jobs as part of this process.

It was also confirmed that the two subsidiaries Bmi Regional and Bmibaby were not sold before completion of the deal. This means that IAG will buy both but there will be a “significant price reduction” on the original £172.5 million to be paid to Lufthansa.

IAG said in a statement: “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 exit 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.”

Source :- http://www.abtn.co.uk/news/