An Aberdeen-based consortium is reported to be closing in on a deal to buy the regional division of BMI.

Granite Aviation is in advanced talks with BMI’s new owner International Airlines Group over the sale of the division for about £20 million, the BBC is reporting.

Aberdeen-based BMI Regional employs more than 300 people and operates 19 aircraft between smaller city airports.

An announcement on a possible deal is expected in the next two weeks.

If the regional deal goes ahead, Granite Aviation could take on the BMI brand when British Airways parent IAG stops using it on BMI’s mainstream services.

IAG has no plans to keep operating the regional division and low-fare Bmibaby.