BMI has announced it has agreed terms for the sale of its budget airline Bmibaby.

In a statement released today (February 1) the airline said the deal was for 100% of the shares and all assets and liabilities including aircraft, route network and staff.

It said the terms agreed were non-exclusive meaning BMI is free to continue discussions with other interested parties. Bmibaby was most recently linked to German turnaround specialist Intro Aviation.

BMI said: “The new potential owner would continue to use the existing brand name for an interim period.

“The currently published summer 2012 schedule would continue as planned and customers can continue to book flights via and via the Bmibaby call centre.

“Bmibaby’s head office would remain in the Midlands and the airline would operate from its three existing bases in the UK: East Midlands, Birmingham and Belfast City. 

“The potential new owner plans to further develop the low fare network in the UK and Europe. BMI and the buyer have agreed not to disclose any financial aspects of the planned transaction.”

BMI hopes legally binding transaction documents will be signed in the first quarter of 2012 and the completion of the deal would occur shortly after this, subject to regulatory approval.

The statement added: “BMI is pleased with the opportunity that this transaction gives to the Bmibaby business enabling it to be an independent airline with great future prospects.

“Following the proposed sale, Bmibaby’s loyal customers will continue to benefit from the airline’s great low fares, wide choice of destinations and high level of service.”

BMI is itself in the throes of a takeover by British Airways parent International Airline Group.