British Airways’ parent company has completed the purchase of Bmi from Lufthansa today but it will be at a reduced price.
IAG, which also owns Iberia, said that it now planned to integrate Bmi's mainline operation into BA – the company announced last week that it was looking to cut up to 1,200 jobs as part of this process.
It was also confirmed that the two subsidiaries Bmi Regional and Bmibaby were not sold before completion of the deal which puts a further 800 jobs under threat. This means that IAG will buy both but there will be a “significant price reduction” on the original £172.5 million to be paid to Lufthansa.
IAG said in a statement: “As previously stated, Bmibaby and Bmi Regional are not part of IAG's long term plans and will not be integrated into British Airways.
“IAG will pursue options to exit these businesses and more details will be provided in due course. The costs associated with exiting these businesses, including the impact of operating them in the short term, are expected to be offset by the price reduction.”
IAG will give an update on its plans for integrating Bmi when the company announces its first quarter financial results on May 11.
BA said that all Bmi mainline flights were now being sold through both airlines and that customers had "access to more destinations, better frequencies and more seats" following completion of the sale.
BA CEO Keith Williams said: “It’s business as usual for both Bmi mainline and British Airways customers. We plan to operate Bmi’s Heathrow summer schedule and their flights remain available for sale through the GDSs.
“We are proposing to integrate bmi into British Airways, subject to the outcome of consultation with staff and unions, which began last week. We aim to make any transition as smooth as possible and we’ll keep customers up-to-date with our progress.”
But union Unite expressed fears for the future of workers at Bmi's two subsidiary airlines.
National officer Oliver Richardson said: "If BA is not commited to retaining Bmi Regional and Bmibaby and the 800 jobs which are at stake it must find a viable buyer. BA must do everything possible to give these two businesses and the workforce a long term future in the UK aviation industry."
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