Lufthansa set to sell British Midland to IAG
Nov. 4, 2011, Berlin, Ger. - Germany's Lufthansa announced on Friday that it plans to
sell its British Midland Ltd subsidiary to the owner of rival British Airways, International Consolidated Airlines Group SA.
Deutsche Lufthansa AG said the two sides had reached an agreement in principle, but gave no price for the proposed transaction. The deal is subject to further due diligence and regulatory clearance.
British Midland, or BMI, has its main hub at London's Heathrow airport, Europe's busiest. It operates flights to Europe, the Middle East and Africa.
International Consolidated Airlines Group, or IAG, is the holding company that owns BA and Spain's Iberia.
Lufthansa said that plans call for a final purchase agreement to be signed "in the coming weeks.'' It aims to complete the sale in the first quarter of next year.
The German airline group's brief statement gave no further details of the deal.
Lufthansa's involvement with BMI dates back to 1999. It took majority control nearly three years ago.
The Lufthansa group also includes Swiss International Airlines, Austrian Airlines and budget offshoot Germanwings.