Published on Tuesday, April 24, 2012

800 more jobs at risk following IAG takeover of BMI

A further 800 airline jobs are at risk, it was revealed this week, as British Airways' parent IAG admitted that it is unlikely to find a buyer for loss-making Bmibaby and BMI Regional.

IAG acquired the two subsidiaries as part of its purchase of BMI from German flag carrier Lufthansa, which was conclude last week.

As part of the deal with IAG, Lufthansa had the option to sell Bmibaby and Regional separately, but as it failed to attract any interest IAG agreed to take the lot, but at a vastly reduced price.

A report in the Sunday Times suggest IAG could have paid as little as £20m - more than £150m less than the price originally agreed for the purchase of BMI - in order to take all three airlines off Lufthansa's hands.

IAG always said it was not interested in operating Bmibaby and Regional and that if a buyer could not be found it will close them down, and a report by the BBC today said it was now doubtful it will succeed.

It quotes IAG chief executive Willie Walsh saying he is not confident about a sale. "These are airlines that Lufthansa struggled to sell but we are going to make an effort to sell them," he told the BBC.

He went on to say that the company, which also owns Iberia, was "reviewing all options" and that talk of job losses was premature.

BA has admitted BMI's merger into BA will lead to the loss of up to 1,200 jobs, but that does not include jobs at Bmibaby or Regional.

Virgin Atlantic is appealing against the European Commission's approval of IAG's takeover of BMI.


By Linsey McNeill

Your Comments

, be the first to post a comment.
Your email:

Email other comments made to this story
Code Request a new picture 5 characters

NOTE: Comments are subject to admin approval before being posted.
  • Fair point

    Fair point

    By Allan Kinross, Thursday, April 26, 2012

  • Mr Branson

    As Mr Branson has said he would be interested in a Short Haul Operation heres his chance or his he just anti IAG/BA

    By John Miles, Tuesday, April 24, 2012

Mole Poll
'Britain follows US and bans electronics from cabin baggage' Good or Bad move ?
Good 52.36 %
Bad 47.64 %

Thank you for your vote

Move scroll bar (above) left to right for more videos!

Sponsored features

It's upgrade time at

Recently, roomsXML has launched its new version of API, which brings significant upgrades to its already reliable API. By upgrading the API, clients now have the ability to search for multiple hotels of their choice in a single request. This allows them complete freedom to only search for hotels they wish to sell.