The British Midland group, owner of BMI, has taken control of British Mediterranean (BMED), a franchise carrier for rival British Airways.
The deal, involving the purchase of £30 million-worth of new shares in BMED, will see the BA franchise agreement terminated from the end of this summer. BMED has operated under the BA brand since 1997 and all its tickets are sold through BA.
BMI’s chairman Sir Michael Bishop, chief executive Nigel Turner and deputy chief executive Time Bye will join the BMED board.
Turner said there would be no immediate change to the BMED network, but BMI has begun a 30-day review of the business.
BMED operates a fleet of eight Airbus aircraft to 16 destinations, primarily in the Middle East but also in central Asia and Africa.
Turner said: “Bringing BMED into the BMI group creates a business with a turnover in excess of £1 billion and enables BMI to accelerate its strategy of expansion into medium-haul markets.”
BMED chief executive David Richardson will remain at the head of the carrier’s 770 staff.