IAG completes bmi buy

International Airlines Group (IAG) reports that it has completed its purchase of bmi from Lufthansa. IAG — which was formed in January 2011 and is the parent company of British Airways and Iberia — said that the plan is to integrate bmi mainline into British Airways, with consultations already underway with bmi mainline staff and its trade unions on the integration process. bmibaby and bmi regional have not been sold prior to completion. Under the terms of the purchase agreement, IAG will also acquire those businesses and receive a significant price reduction. As previously stated, bmibaby and bmi regional are not part of IAG’s long term plans and will not be integrated into British Airways. IAG will pursue options to exit these businesses and more details will be provided in due course. 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 said that it will update investors about the bmi integration plan at its Q1 results on May 11, 2012. Go to http://www.iairgroup.com for more.