OT News: LH Agrees to Sell BMI to IAG (BA/IB)

Discussion in 'American Airlines | AAdvantage' started by DestinationDavid, Nov 4, 2011.  |  Print Topic

  1. DestinationDavid
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    DestinationDavid Milepoint Guide

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    LINK. This is already on MP/FT/TB with discussion but in case you aren't seeing it.....

    Will be interesting to see what happens to LHR due to this possible sale, and if BA/IB are successful will be very interesting to see how they use the slots to potentially add new destinations for AA mileage redeption!

    The International Airlines Group, the parent company of British Airways and the Spanish carrier Iberia, said Friday that it had reached a preliminary agreement with Lufthansa of Germany to acquire its loss-making British Midland unit.

    Details of the transaction, including a binding purchase agreement, were still being negotiated, IAG said in a statement. The sale would also be subject to the completion of due diligence and clearance from competition regulators.

    IAG said it expected a purchase agreement to be signed ‘‘in the coming weeks,’’ with an eye to completing a sale in March 2012.
     
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  2. DestinationDavid
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    DestinationDavid Milepoint Guide

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    Looks like it has received some approval: LINK.

    British Airways (IAG) parent IAG won European Union antitrust approval to purchase Deutsche Lufthansa AG (LHA)’s BMI unit in a deal that will boost its position at London’s capacity-constrained Heathrow airport.

    IAG, which agreed in December to buy BMI for 172.5 million pounds ($275 million), will cede 14 takeoff and landing slots at Heathrow to rivals out of the 56 controlled by BMI and connect passengers to competing long-haul flights there in order to maintain competition, the European Commission said today.

    “It’s a price worth paying and, if anything, makes integrating BMI somewhat easier in the short-term as there’s less pressure to find a profitable use for all of its slots,” said Douglas McNeill, a transport analyst at Charles Stanley in London who recommends buying IAG stock.
     
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  3. jbcarioca
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    jbcarioca Gold Member

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    This is good news for IAG, specifically BA, but it still will not induce me to fly BA again.
     
  4. DestinationDavid
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    DestinationDavid Milepoint Guide

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    Funny you responded to this, I was just debating redeeming AA miles on BA from Brazil since apparently the YQ isn't accessed. :)

    I'm eager to see if BA is able to add new routes. I might not be redeeming miles on BA, but I can always SWU on AA metal into LHR and continue on in Y if the price is good.
     
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  5. Eloy Fonseca Neto
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    Eloy Fonseca Neto Silver Member

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    My parents will be flying from GIG to LHR with BA from my AA miles!!! 90K each for F!!!
     
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  6. tom911
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    tom911 Gold Member

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    I saw a news item earlier this week that LH was also selling off its interest in Jet Blue. Imagine that could make Jet Blue a much more attractive candidate for One World membership.
     
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  7. TheBeerHunter
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    TheBeerHunter Silver Member

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    I look forward to the additional routes the acquisition will make available via awards.
     
  8. benolaa
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    benolaa Gold Member

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    Less competition out of LHR not a good thing.
     
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