British Airways parent company International Airline Group is reported as having tabled a bid to buy Heathrow rival Bmi from Lufthansa.
Discussions between the two sides are claimed to be at an early stage and could involve a full takeover of the airline or a deal to acquire some of its assets, including its prized take-off and landing slots at the London airport.
IAG has asked investment bank Barclays Capital to help it structure a potential takeover of BMI, Sky News is reporting today.
Acquiring loss-making Bmi would give IAG more than half (55%) of all take-off and landing slots at Heathrow, tightening BA’s grip on one of the world’s most important hubs.
Any such deal is bound to spark furious opposition from the likes of Virgin Atlantic which has openly expressed interest in linking with Bmi.
Bmi and Lufthansa are part of the Star Alliance, while BA and its partner Iberia belong to OneWorld, raising questions over the sale of valuable slots at Heathrow to a rival alliance partner.
But BA has already acquired six sets of take off and landing slots at Heathrow from Bmi,
Lufthansa has 66% of the slots at Frankfurt’s main airport, while Air France-KLM has 59% at Paris Charles de Gaulle and 57% at Schiphol in Amsterdam.
IAG has declined to comment on the speculation.