Virgin Atlantic chief executive Steve Ridgway has said that International Airlines Group (IAG), owner of British Airways (BA), will have a “massive competition mountain” to climb if it is to be successful in its bid for BMI.
Mr Ridgeway said it was difficult to see how regulators would pass any deal because there would be no competition on a number of routes from Heathrow. Virgin Atlantic is expected to launch its own bid for BMI following IAG’s £200m-£300m offer.
Mr Ridgeway will meet Lufthansa bosses on Thursday and is claiming that the battle to take over the carrier is very much still alive.
IAG announced on Friday that it has reached “agreement in principle” with the German airline to acquire BMI in a deal that would increase its share of Heathrow’s take-off and landing slots from 45pc to 53pc.
“There is no exclusivity and there is no binding deal. They have reached an agreement in principle. Both companies have put bids in and there’s a huge amount of work to do.
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