Heathrow’s number 2 airline will be taken over by German giant Lufthansa.

Lufthansa is buying the 50% of firm owned by BMI chairman Sir Michael Bishop, who forced the purchase under a long-standing agreement. The German carrier was already BMI’s second-largest shareholder, with a stake of 30% minus one share. The deal will give Lufthansa control of more flights from London Heathrow airport than any other airline except British Airways.

The deal is set to be completed by 16 January – but the German firm would not confirm what it was paying for Sir Michael’s stake. Reports suggest it is upwards of €400million.

Virgin to join the party ?

In a further twist, Virgin Atlantic has pounced on the chance to forge a tie-up with bmi.
Virgin Atlantic Chief Executive Steve Ridgway told Reuters bmi would make a good fit with Virgin Atlantic and provide a stronger competitor to Heathrow kingpin British Airways.
“There is a very compelling opportunity for a combination. The two businesses are complementary,” he said in an interview.
“We are a long-haul operator and they are predominantly a short-haul carrier. It would improve their performance and increase the competition we are providing in the market.”

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