British Airways’ parent company International Airlines Group (IAG) has reached a deal to buy-out bmi,it has been announced. IAG could purchase the regional airline in the first quarter of next year and an agreement is set to be signed in weeks. The buy-out would see BA own 53% of flight slots at Heathrow.
However,Virgin Atlantic has also made a bid for bmi to stop British Airways taking the majority slots at the airport. “British Airways’ hold over Heathrow is already too dominant and we are very concerned – as the competition authorities should also be – that BA’s purchase of BMI would be disastrous for consumer choice and competition,” said Virgin Atlantic’s statement. “With Government limiting growth at London Heathrow, they cannot afford to turn a blind eye to the deterioration of competition that would result from a BA purchase of bmi”.