According to Bloomberg, it is closing in on game over for British Midland International and International Airlines Group (owner of British Airways).
It is understood according to Bloomberg that final negotiations of the deal are under way, and a memorandum of understanding has been signed, with the announcement due tomorrow when IAG declares its earnings tomorrow.
If this goes ahead, this transfers 8.5% of all the landing slots at London Heathrow to IAG.
Lufthansa had a choice, and rather than suffer with the millstone any longer, they’re choosing to offload it to IAG, and to be honest, have done nothing with BMI other than fret around the corners of it.. and change it’s name.
Lufthansa isn’t commenting at this time, but the dismemberment of BMI is pretty much done and dusted with Regional being sold off to become a separate business, and Monarch carefully eye-balling BMIBaby.
And Virgin Atlantic who have ummed, ahhed, and failed to put up any money will now have to pay the price. Again.
The impact for Diamond Club holders is… unknown. I’m examining the news carefully, and thinking about the possibilities.
Although being a BA Gold is rather exciting possibility…
What does it mean for bmi’s superb London Heathrow lounge? And for Star Alliance connections?
A very good question. I’ll try and explore that in a post this afternoon….