International Airlines Group has completed the acquisition of British Midland International, with having to discount the sales price under terms of the deal.
Lufthansa was trying to unload low-fare unit BMIBaby as well asregional before the transaction, but its failure to sell the unprofitable businesses to a third party means the German carrier has to reduce the purchase price. The airlines would not disclose the final price, with IAG saying the discount is “significant.”
IAG will now look to dispose of the two BMI units or close them. They “will not be integrated with,” says IAG, which owns BA and .
“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 adds.
The airline group already has announced that more than 1,000 job losses loom at BMI mainline, which will be integrated into BA. More details on the integration are due to be aired on May 11, when IAG reports first-quarter financial results.
IAG largely acquired BMI to control more slots at. has fiercely opposed the transaction and argues the relief package offered by its rival to placate antitrust concerns is insufficient to maintain market balance.