bmi faces bid from BA

Published: 04/04/07

Rumours are spreading throughout the aviation industry of a possible takeover of bmi by leading UK carrier British Airways. Any such bid, which is thought to be for a sum of more than GBP1 billion, would need to be approved by the relevant authorities, as a combined group would hold more than 50 percent of the total number of available slots at London Heathrow.

Consolidation throughout the industry was thought inevitable this year, after US Airways and Delta were close to a merger, while the struggling Italian carrier Alitalia is currently the target of both Air France KLM, and Lufthansa.

Other potential targets for British Airways include Iberia, and Texas Pacific who are currently struggling to take over at Qantas are thought to be close to making a bid for the Spanish airline in conjunction with BA.

Any takeover of bmi by British Airways would be likely to cause conflict with Virgin, who compete with their rivals on several routes including flights to New York, and Las Vegas flights.

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