Lufthansa To Take Control Of BMI

British low cost airline BMI is being taken over by the Lufthansa. The German flag carrier had already been in control of 30% of BMI, but this latest deal means another 50% previously chairman Sir Michael Bishop, gives Lufthansa an 80% majority. The remaining 20%is owned by Scandinavian Airlines (SAS), who have recently confirmed their preference to sell.

The deal was welcomed by Virgin Atlantic, who hope to profit from the deal. Virgin chief executive Steve Ridgeway said:

"Michael Bishop is one of the icons of UK aviation. He has been a considerable force in championing the cause of the consumer and, along with Virgin Atlantic, has helped to provide much-needed competition to BA and choice for consumers.”

"Now we are about to enter the next phase of BMI's future and a turning point in aviation. Everyone has speculated that it would make sense for Virgin Atlantic and BMI to combine their long-haul and short-haul networks. There is now a major opportunity to do that and create a new and even more effective competitor to British Airways.

Ridgeway went on to add that a possible deal with Lufthansa would be good for consumers and for the competitiveness of the European aviation industry. BMI’s 11.4% of the slots at Heathrow means that Lufthansa now has the second largest presence at the UK’s busiest airport, behind British Airways.