The future of budget carrier bmibaby was uncertain today after the owner of British Airways completed its deal to buy bmi and said still it wants to exit the low-cost arm.
When International Airlines Group, which owns BA and Iberia, announced its acquisition of loss-making bmi from Lufthansa, it came with the proviso that the German airline would sell bmibaby and BMI Regional before completion or give IAG a “significant reduction” on its £172.5 million purchase price.
IAG said: “IAG will acquire these businesses and receive a significant price reduction. B mibaby and bmi regional are not part of IAG’s long-term plans and will not be integrated into British Airways. IAG will pursue options to exit these businesses.”
City analysts expect closing bmibaby to cost about £60 million. IAG said exit costs would be offset by its price reduction.
