Sunday, 11 September 2011

BMI up for sale after recent losses

BMI British Midland is rumoured to be up for sale after its losses soared over the first six months of 2011. Figures have shown that the airline plunged £105 million into the red in 2011 and these results lead Lufthansa as parent company to appoint Morgan Stanley to explore the options of selling the carrier.

The losses equate to £38 per passenger but this is unlikely to deter potential suitors as BMI controls 10% of the landing slots at Heathrow which could be worth £770 million alone.

International Airline Group could well be interested in BMI in order to obtain the slots at Heathrow and to also take on a low cost carrier.

Lufthansa have blamed the losses at BMI on the steep increase in the cost of aviation fuel and the uprising in North Africa and the Middle East.