BMI airlines put for sale after announcing losses

BMI is expected to attract plenty of interest as it controls 10% of the take-off and landing slots at Heathrow

Travel News
Travel News

One of the major users of Heathrow Airport is up for sale after losses soared over the past six months, it was reported today.

BMI British Midland, Heathrow’s second-largest airline, plunged £105m (€122.1m) into the red in the first half of 2011, prompting German parent Lufthansa to appoint investment bank Morgan Stanley to explore options for disposing of the carrier, according to The Sunday Times.

Despite the losses, which work out at £38 (€44.19) per passenger, BMI is expected to attract plenty of interest as it controls 10% of the take-off and landing slots at Heathrow, a portfolio it valued at £770m (€895.6m) in 2008.

International Airline Group, the owner of British Airways and Iberia, has already expressed its interest in BMI, principally because of its slots at Heathrow, while Middle East airlines such as Abu Dhabi’s Etihad may also be keen for the same reason.

Lufthansa will also consider breaking up the group, which could involve a sale of BMI’s no-frills subsidiary BMI Baby, the regional division BMI Regional and possibly the group’s HQ at Donington Hall near Derby.

The German group took full control of BMI two years ago but attempts to improve its performance have been hit by steep rises in the cost of aviation fuel and also the recent uprisings in North Africa and the Middle East, which have badly affected demand for flights to the region.

BMI said it is discussing the options for its future with Lufthansa but no decision had been taken.

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